What to consider before closing a fixed deposit prematurely?
According to Livemint, an individual should evaluate multiple aspects prior to liquidating their fixed deposit (FD) ahead of its maturity date. These factors comprise the penalty for premature withdrawal, the adjusted interest rate applicable after early closure, taxes on the FD interest, and whether opting for an overdraft or a loan against the FD would be a better choice. Additionally, calculating the overall financial impact of ending the FD early is crucial.
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