PNB Premature FD Withdrawal Calculator 2024, Closure Penalty

If you invested your money in PNB Fixed Deposit but now due to some financial issues, you want the premature closure of your PNB FD, you need to understand few things. The PNB premature FD closure will attract penal charges (penalty) and the actual payable amount will be calculated accordingly.

To help you out, we have prepared a PNB Premature FD Withdrawal Calculator. This calculator allows you to precisely calculate the amount you are going to get after prematurely closing your Punjab National Bank’s FD.

PNB Premature FD Closure Calculator

For this calculator to work perfectly, we need some information from you. This includes the Deposited Amount, Interest Rate Offered to you, Original Deposit Period (in Years or Months) and Premature Withdrawal Period (In Years or Months). After you correctly provide this information, hit the “Calculate Withdrawal” button to calculate the Premature FD Withdrawal amount for PNB, it’s that simple.

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PNB Premature FD Withdrawal Calculator

How PNB Fixed Deposit Premature Withdrawal Calculator Works?

The PNB Premature FD Withdrawal Calculator works by calculating the interest earned and the total withdrawal amount for a fixed deposit that is withdrawn before its maturity date. Here’s a step-by-step explanation of how it works:

Inputs:

Calculation Steps:

Convert Periods to Months:

The calculator converts both the original deposit period and the premature withdrawal period into months to standardize the units for calculation.

For example, if the original deposit period is given in years, it is converted to months by multiplying the number of years by 12.

Determine Penal Interest Rate:

The penal interest rate is calculated by subtracting 1% from the contractual interest rate.

This penalty is typically imposed by banks to discourage premature withdrawals and compensate for the loss of interest income.

Calculate Interest Earned:

This formula computes the interest based on the penal interest rate and the actual period the deposit was held (in years).

Punjab National Bank Premature FD Closure : FAQs

What happens if I need to withdraw my term deposit before it matures?

If you need to withdraw your term deposit before it matures, the bank will charge a penalty of 1% on the interest rate. This simply means you’ll receive either the original contractual rate minus 1% or the rate applicable for the period the deposit actually remained with the bank minus 1%, whichever is lower.

Is there any scenario where I can avoid the penalty for premature withdrawal of my term deposit?

Yes, you can avoid the penalty if you prematurely close your term deposit to reinvest in another term deposit scheme of the same bank. The key condition is that the new deposit must remain with the bank for a period longer than the remaining period of your original deposit. But this scenario is usually unlikely because most of the people prematurely withdraw when they need money urgently and investing in other term deposit is not the option they will look for at that time.

For joint FD with spouse, what is the process to withdraw the deposit prematurely if spouse passes away?

Yes, you can. If your term deposit is set up so that either person or the surviving person can access it (“Either or Survivor” or “Former or Survivor”), you can withdraw the deposit early without needing permission from the legal heirs of your spouse.

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PNB Premature FD Withdrawal Calculator 2024

PNB Premature FD Closure Calculator

PNB Premature FD Withdrawal Calculator

How PNB Fixed Deposit Premature Withdrawal Calculator Works?

Inputs:

Calculation Steps:

Convert Periods to Months:

Determine Penal Interest Rate:

Calculate Interest Earned:

Punjab National Bank Premature FD Closure : FAQs

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