If a fixed deposit hasn't matured yet, but there's an urgent need for money, what can be done to minimize losses?

Indeed, many friends may encounter such a problem: they have arranged a long-term fixed deposit that hasn't matured, and suddenly there's an urgent need for funds. At this time, it's troublesome because, according to current policies, if you withdraw the money early, you can only calculate the interest at the demand deposit rate, which can result in a significant loss.

Today, I will teach you three methods to ensure that you can use your money early without losing or with minimal loss of interest. Interested friends, please continue to read on. No fluff, let's get straight to the point.

Method one: Certificate of deposit pledge

Many friends may not be aware of this method, but it is actually a traditional banking service. When we are in urgent need of money, we can pledge our unexpired fixed deposit certificates to the bank, which is to say, we can apply for a "pledge loan." This allows us to easily obtain a sum of money to address our "immediate needs."

However, it is important to note that pledge loans also accrue interest. But as long as the loan interest is less than the interest we would lose by making an early withdrawal, this service is suitable.

Here's a little trick: pledge loans can also be repaid early. That is to say, before the maturity of the certificate of deposit, you can repay the loan in advance, and then there will be no more loan interest. Using it in this way would be even more suitable.

Method two: Partial early withdrawalThis has become even simpler. Suppose you have a fixed deposit of 200,000 yuan that hasn't matured yet, but you recently need to use 50,000 yuan from it. What should you do? If you withdraw the entire amount in advance, then the interest on the 200,000 yuan fixed deposit will be completely lost. At this time, we can handle a partial early withdrawal, which means only withdrawing 50,000 yuan, and the remaining 150,000 yuan will continue to be executed according to the previous deposit period and interest rate until it matures normally.

The advantage of doing this is that only the 50,000 yuan withdrawn in advance is calculated at the demand deposit rate, and the remaining 150,000 yuan is not subject to any loss.

The third method: Large-amount deposit certificate transfer

If you want to handle this method, there are certain prerequisites. Not all fixed deposits can be transferred. Many banks have now introduced a "transferable large-amount deposit certificate." If you purchase such a certificate and have a need for early withdrawal, you can directly transfer the certificate to someone else, give them an appropriate discount, and you can obtain the benefits of the holding period while also achieving early withdrawal, which is also very convenient.

For example, if you have a 3-year fixed deposit that has been held for 2 years and has a phased profit of 80 million yuan, if you want to withdraw it in advance, the interest income can only be calculated at the demand deposit rate. However, if you transfer it to someone else and give them a discount of 1,000 yuan, transferring it for 7,000 yuan, then the depositor's loss is not much, and the recipient is also very suitable. It's a win-win situation for both parties, so why not do it?

Therefore, in recent years, the transfer business of large-amount deposit certificates in banks' transaction records has been increasing year by year, and many times it is necessary to grab it. So, everyone can completely worry about not being able to sell it when they need money urgently.

The above three methods of early withdrawal of fixed deposits each have their own characteristics, advantages, and disadvantages. When using them, you can use them reasonably according to your actual situation, strive to minimize your own losses, and achieve the ultimate goal of maximizing benefits.

Anyway, as a common savings method, fixed deposits are also constantly adjusting and innovating. In terms of early withdrawal, banks are also innovating and changing to meet the different needs of customers, with the purpose of allowing everyone to suffer less loss while also reasonably using their own funds.I hope the information above can be helpful to everyone.

Have any of you ever had the experience of early withdrawal? And how did you handle it?

Feel free to leave a comment and share your thoughts.