Glossary:


Term - P : Penalty on premature payment

Penalty on premature payment


Penalty on premature payment

Normally, fixed deposits are payable only on maturity. If a depositor needs payment before the due date, the Bank cannot deny payment. However, the bank may levy a penalty on premature withdrawal of fixed deposit. The penalty will be in the form of a reduction of up to 1%, in the rate of interest payable on the deposit.
Previous
Next