Are there any charges/fees on premature withdrawal of FDs?
On premature withdrawal, interest will be paid out at applicable rate* minus 1% or zero whichever is higher.
Any bonus payout from Belong will also not be applicable in case of premature withdrawals.
For example, let's say at the time of booking the USD FD (assuming 1 year tenure) on the Belong app; bank offered 4% interest pa. With Belong bonus (2%), you get an interest of 6% on the FD booked. Now if you do a premature withdrawal anytime before the 1 year period is completed; you will lose out on the 2% Belong bonus and on the 4% interest also, you lose 1%. So overall for the premature withdrawal, you only get 3% returns.
Please note that your principal amount is always protected and you don't lose anything on the principal amount even if you withdraw prematurely.
You can check out Belong’s schedule of charges here - https://static-assets.getbelong.com/schedule_of_charges.pdf
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