What is the interest applicable for premature closure within 7 days from the date of booking a Fixed Deposit?

As per general industry practice, financial institutions tend not to pay any interest if a fixed deposit is prematurely closed within 7 days from the date of booking.

While the exact terms may vary across financial institutions, the general policy is that if the fixed deposit is closed by submitting a withdrawal request within 7 days from the date of booking, no interest is paid out to the depositor.

In such cases, only the principal amount that was originally deposited is returned without any interest accrual. This is because most financial institutions treat fixed deposits closed within 7 days as equivalent to a regular savings bank account and therefore do not offer any interest.

However, financial institutions frame their own specific guidelines on interest payment in early closures. So, in case you are considering a premature fixed deposit closure within 7 days, it is advised that you check the applicable terms with your financial institution to determine the exact interest and charges applicable.