SBI auto sweep Fixed Deposits penalty?
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I am thinking of breaking my FD in SBI to apply for hni IPO. FDs were made in early 2024 and 2023.
Does it make sense to break the FDs? Will there be any penalty or will breaking FD will still be net positive?
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no its not worth it u'll lose a good amount in interest or penalty if interest given already, if u wanna do all this then from next time put money in debt funds, learn about how it works, how rbi rates affect it and u'll get similar FD return or more without any exit penalty
Od on FD for IPO application is my suggestion.
It's not certain that you will get allotment.
If got allotment you can either pay by breaking fd or pay interest on OD account or just sell all allotted shares same day and make gains if fortunate.
P.s. just a casual advice.
penalty usually never decreases the principle amt. Some banks like Axis does not allow to break auto sweep FDs. you just have to use to amt. On the basis of LIFO, the latest FD will be auto break.