RBI’s rate cut triggers concern for FD investors: Penalty charges for account holders looking to rebook FDs for higher interest income

Different banks impose different penalty charges, and it typically involves a reduction in interest rate. The penalty can range from 0.5% to 1%. Here is a look at the penalty charges of State Bank of India (SBI), HDFC Bank, ICICI Bank, Punjab National Bank (PNB), Canara Bank, Bank of India, and YES Bank for premature withdrawal of FD.