Premature withdrawal of fixed deposits, popularly known as breaking an FD, can incur penalties, reduce the interest rate earned on the deposit, and sometimes even nullify the interest entirely. However, situations may arise where you need to withdraw your FD before its maturity date, either to cater to an unforeseen emergency or to invest in a more profitable investment opportunity.
It is a preferred choice for those seeking to invest their savings and earn a fixed interest rate over a specific period.
Fixed deposits (FDs) have been a go-to investment choice for generations in India, due to their low-risk profile and guaranteed returns.
