It’s worth noting, however, that this penalty is calculated based on the lower of two rates: the card rate at the time of deposit or the contracted rate. In practical terms, if you opt to withdraw your FD before its maturity date, you’ll incur a penalty amounting to one per cent of the interest you would have earned if you had maintained the FD until maturity. The bank also imposes a premature withdrawal penalty of one per cent, but this penalty is not applicable for closures occurring within seven days of deposit. Utkarsh Small Finance Bank extends an interest rate of 9.10 per cent to senior citizens for FDs maturing within the two to three-year timeframe. In sum, Unity Small Finance Bank provides a competitive FD interest rate, but it is essential to take note of the premature withdrawal penalty before making an investment decision. This penalty serves as a deterrent for early withdrawals and helps the bank sustain its profitability. Nonetheless, should you decide to withdraw your FD before its maturity date, a premature penalty of one per cent will be levied on the interest accrued during the period the deposit was held. Unity Small Finance Bank presents an enticing interest rate of 9.50 per cent for Fixed Deposits maturing in 1001 days.
