Will I have to pay a penalty to withdraw FD before its time?

Yes, you will generally have to pay a penalty if you withdraw your Fixed Deposit (FD) before its maturity date. The penalty varies depending on the financial institution, the tenure of the FD, and the applicable interest rate.

For example: A financial institution might charge a penalty of 2% on the interest earned for early withdrawal. If you have earned ₹10,000 in interest and withdraw before maturity, you might be charged a penalty of ₹200. It's always advisable to check with your financial institution for the exact penalty terms applicable to FDs.