Banking · Term Deposits
Fixed Deposits and Recurring Deposits are popular term deposit products offered by banks where customers earn predetermined interest for maintaining funds for a specified tenure. What penalty do banks typically impose on customers for premature withdrawal from Fixed Deposits or Recurring Deposits?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Conversion to a zero-interest account
- 2Full loss of principal amount
- 3Lower interest rate than originally agreed upon✓
- 4Complete forfeiture of interest
Correct answer
Lower interest rate than originally agreed upon
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Banking?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Term Deposits MCQs →Want more practice questions on Term Deposits?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Banking · Term Deposits