What happens if I withdraw my money before maturity?

If you withdraw your money from a guaranteed investment such as a Fixed Deposit (FD) or National Savings Certificate (NSC) before the maturity date, you may incur a penalty or lose some or all of the interest you were expecting to earn.

The penalty or reduction in interest rate payable on premature withdrawal may vary depending on the financial institution, the type of investment, and the investment period. In some cases, the penalty or reduction in interest rate may be significant and can significantly impact the returns of the investment.

It's important to check the terms and conditions of the guaranteed investment and the premature withdrawal policy of the financial institution before investing. Some investments may offer partial or complete premature withdrawal options with reduced interest rates or penalties, while others may not allow any premature withdrawal at all.

If you anticipate needing access to your funds before maturity, it may be better to consider other investment options that offer greater flexibility and liquidity. It's also important to carefully consider the investment period and the expected returns before investing to ensure that the investment meets your financial goals and risk tolerance.