What happens when we break the fd next day?

[NikhilG]

Suppose I do a fixed deposit of 50000 for one year and I break it next day or say same day. As bank doesn't give any interest for less than 7 days. Where will it deduct the penalty from as their is no interest paid by the bank. Do they deduct from principal amount?

 

[tachniki]

Suppose I do a fixed deposit of 50000 for one year and I break it next day or say same day. As bank doesn't give any interest for less than 7 days. Where will it deduct the penalty from as their is no interest paid by the bank. Do they deduct from principal amount?

From what I have seen, No.

You will never lose principal even after 7 days.

 

[hender]

Suppose I do a fixed deposit of 50000 for one year and I break it next day or say same day. As bank doesn't give any interest for less than 7 days. Where will it deduct the penalty from as their is no interest paid by the bank. Do they deduct from principal amount?

If using app, can check infinite times as per your convenience
1 May
2 May
3 May
4 May
5 May
or after
10 days
30 days
90 days

....so on...
Depend on bank /scheme code...

 

[s1t2y3a3m6]

Suppose I do a fixed deposit of 50000 for one year and I break it next day or say same day. As bank doesn't give any interest for less than 7 days. Where will it deduct the penalty from as their is no interest paid by the bank. Do they deduct from principal amount?

Depends on what type of fd you opened.

Some non callable FD options are there for high intrest payout. You can't cancel non callable FD before maturity

Else you can cancel anytime and interest paid as per tnc without any penalty on principal

 

[hender]

Suppose I do a fixed deposit of 50000 for one year and I break it next day or say same day. As bank doesn't give any interest for less than 7 days. Where will it deduct the penalty from as their is no interest paid by the bank. Do they deduct from principal amount?

It's simple, it will not help much ..
I"ll give you more complex to understand better....

On 31 Jan 2025 , a running FD of 20 Lakhs got matured and renewed automatically as per previous mandate of 666 days in PNB@ 6.8 % with MIS payout.
Person forgot to move bank for days mandate change.

Now rate revised downward after Feb RBI'S monetary policy...
Got the monthly payout of Feb and March in last date
Tomorrow is payout day of April.
He have 2 option
1- Break and create new for 390 days @ 7.1 %
2- Continue as it is....