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Over draft against fixed deposit

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Prithvi Singh

3 Points Posted on 24 August 2022

Hello Everyone,

I have a question.

1.can an overdraft against fixed deposit can be taken if FD is paying quarterly interest.(I think we can but for surety)

I know that 1 % extra in PSU and 2 % extra in private banks charged then FD interest.

2. can someone help me with an excel sheet. what will be the calculation if I reverse the quarterly interest to my OD for few years and after 9 years I pay the remaining amount with interest. for example how i am paying to the contractor and reversing the quarterly interest to my OD account.

In booking 9% of 7200000

after 2 month 16% of 72lac

after 8month 25% of 72lac

after 16month 25% of 72lac

after 24month 20of 72lac

after 26 month 5% of 72lac

however i am paying 1lac which is getting from the fd every quarterly in between with no monthly emi.

can someone please let me know what will be the calculation.

as i want to save my 80lac in capital.

thanks in advance

Replies (2)

Quick Summary

This discussion explores the possibility of obtaining an overdraft facility secured against a fixed deposit, even if the FD pays quarterly interest. It also seeks assistance with an Excel calculation to model the financial implications of reversing quarterly interest payments into the overdraft account over a nine-year period, rather than making regular EMI payments.