According to the SBI website, “For Term Deposit up to Rs 5.00 lacs, the penalty for premature withdrawal will be 0.50% (all tenors). For Term Deposits above Rs 5.00 lacs, the applicable penalty will be 1% (all tenors).”

For the duration that deposits were held by the bank, the interest rate will be 0.50 percent or 1% less than the rate in effect at the time of deposit, whichever is less, or 0.50 percent or 1% less than the contracted rate, whichever is less.