For debt investors seeking capital building over a predetermined time period, fixed deposits (FDs) are a good option. Along with fixed rates of return, bank FDs have flexible terms that vary from 7 days to 10 years; however, the bank imposes a penalty rate on early liquidity that is deducted from the interest payout. Premature withdrawals from fixed deposits can transpire in an emergency, so it’s essential to be aware of the bank’s penalty fees and the specific time period for which they apply in order to avoid paying them. In plain English, penalty rates arise if an investor withdraws the fixed deposit account before it has reached maturity but in the case of tax-saving FDs one can not make premature withdrawals as these are the deposits that come with a lock-in tenure. These rates and charges vary from bank to bank. Following are the current penalty for early withdrawal of fixed deposits that you should be aware of if you are a customer of the banks listed on the topic.