Take loan against FD when you need money: In this you will get easy loan at low interest, no need to break FD; Understand the entire math

It is often seen that people break their Fixed Deposit (FD) when they need money suddenly. But doing so may incur losses. Because if you break the FD before maturity, you will not only get less interest but also have to pay penalty. Here we are telling you about the disadvantages of breaking FD before maturity and the loan facility available on FD. How much less interest will you get if you break your FD prematurely? If you are closing the FD prematurely, you do not get interest at the rate you paid the FD. According to the information provided on SBI's site, if you break the FD early, you will get 1% less interest than what you would get on the FD. For example, suppose you have an FD of Rs 1 lakh at 6% for 1 year, but you withdraw it after 6 months, the bank will give you 5% interest on your money, and no. A rate of 6%. Apart from this, a penalty will also have to be paid on him. How much penalty to pay? According to the rules of SBI, the country's largest bank, if a person keeps an FD up to Rs 5 lakh, he has to pay a penalty of 0.50% if the FD is broken before maturity. Similarly for FDs above 5 lakh and below 1 crore, 1% penalty has to be paid for premature break. After deducting up to 1% of the interest earned on the FD (as mentioned above) and charging a penalty as per the FD amount, your money is released to you. You can take loan against FD Under this, you can take loan upto 90% of FD value. Suppose your FD value is 1 lakh rupees then you can get a loan of 90 thousand rupees. If you take a loan against FD, you will have to pay 1-2% more interest than the interest you get on fixed deposits. For example, suppose you are getting 4% interest on your FD, you can get a loan at 5 to 6% interest rate. What happens if the loan is not repaid? If someone takes a loan against an FD and is unable to repay it, when your FD matures, the bank will deduct the loan balance from it. In such a situation you will get whatever money is left in the FD after this.

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