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Premature closure of 5 Year TD – Terms and conditions??

Premature closure of 5 Year TD – Terms and conditions??

SB order 22/2023

Ø  5-Year TD account opened on or after 10.11.2023 cannot be prematurely closed till completion of four years from the date of deposit.

Ø  In case of pre-mature closure of 5-year TD account after four years, interest shall be payable at the interest rate applicable to the Post Office Savings Account scheme.

Ø  5 Year TD accounts opened before 10.11.2023 can be closed prematurely on completion of 6 months

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  1. TD 5 Year Account Holder (account opened after 10/11/2023 approached at the counter for PMC on emergency basis. As per sb order 22/2023 the account will be closed only after completion of 4 years. In this situation, can the account holder pledge his account for availing loan facility in the banks?

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