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Comparisons3 min read9 sources

What it costs to leave early: pigmy early-closure terms compared

Closing a daily-deposit account before term can cost nothing, all of the interest, or a slice of the deposit itself. What each institution in our directory publishes, read from its own pages.

Published

At a glance

Basis
Only what each institution publishes on its own scheme page
Institutions in the table
Every public record in the directory, including those publishing nothing
Ranking
None. The terms are shown; the judgement is yours
Figures
Computed from the dataset, with the date each was verified

The rate a daily-deposit scheme advertises assumes you reach the end of the term. Many depositors do not, and that is where the cost sits. This page puts the published exit terms side by side, from the same institution pages our rate table is built from.

How the table is built

Three rules, stated before the table rather than after it.

  1. Only what the institution publishes on its own pages. Nothing here comes from an aggregator, a vendor or a news report. Each value carries the date it was verified.
  2. Every public record appears, including the silent ones. An institution that publishes no early-closure term is listed as publishing none. Leaving those rows out would flatter the sector and mislead the reader, because silence is the most common condition on this question.
  3. No ranking and no recommendation. A penalty that suits a saver who will certainly finish the term is punishing for one who may not. That judgement depends on facts about you that we do not have.

Terms are recorded as not publicly stated when we read the institution's page and found nothing on early closure, and as not established when we have no observation at all.

What each institution publishes

InstitutionPublished early-closure termsLoan against the balanceLast verified
Nitya Nidhi India Limited
Nidhi company
Not publicly statedNot established
Sahayog Multistate Credit Co-op Society Ltd.
credit co-operative society
Not publicly statedNot publicly stated
Latur Urban Co-Op Bank Ltd
urban co-operative bank
5% deducted from the deposit if closed before six monthsNot established
Shiv Sahyadri Patpedhi Ltd.
credit co-operative society
Withdrawable at the depositor's convenience; penalty terms not statedUp to 75% of the balance
Sree Charan Souharda Co-Operative Bank Ltd.
Souharda co-operative bank
Pre-closure permitted with a penaltyUp to 75% of the deposit, ₹5,000 to ₹75,000, at 12% a year
Karnataka Grameena Bank
regional rural bank
Service charge of ₹5 plus GST; commission recovery depends on when the account is closedNot established
Shivdaulat Sahakari Bank Ltd.
co-operative bank, category not stated
Not publicly statedUp to 80% of the deposited amount
Andhra Pradesh Mahesh Cooperative Urban Bank Ltd
urban co-operative bank
Not publicly statedNot established
Indrayani Co-operative Bank Ltd
co-operative bank, category not stated
Premature closure permitted with penal cutsNot established
Cosmos Bank
urban co-operative bank
Not establishedNot established
Canara Bank
public sector bank
Interest reduced by slab on early closure, with a further penalty inside 12 monthsUp to 75% of the outstanding balance
Chikmagalur Dist Co-Op Central Bank Ltd.
district central co-operative bank
No interest if closed within 12 monthsNot established
Bellary District Coop Central Bank
district central co-operative bank
Not publicly statedUp to 75% of the deposit including interest, at 12% a year above the deposit rate
Kerala Gramin Bank
regional rural bank
Premature closure allowed, with penalty deductions; the amount is not stated on the pageAvailable against the balance in the account, subject to terms, at 10% interest
Kokan Mercantile Co-operative Bank Ltd.
multi-state co-operative bank
Not publicly statedNot established
Nagarik Samabay Bank Ltd
urban co-operative bank
Not publicly statedAvailable with adequate margin
Sangli Urban Co-operative Bank Ltd.
urban co-operative bank
Early withdrawal allowed; terms not statedPledging allowed
The South Canara District Central Co-Operative Bank Ltd.
district central co-operative bank
Not publicly statedNot established

What the table shows

The terms do not converge. Of 18 public institutions in the directory, 9 publish an early-closure term and 8 were read and publish none. Among those that do publish, the mechanism itself differs: some withhold interest, some deduct from the deposit, and at least one adds a flat charge and recovers the agent's commission.

Three shapes are worth naming, because a depositor can ask which one applies:

  • Interest withheld by period. Nothing at all inside a first threshold, then a reduced rate by slab. This costs the saver the entire return on a short account and nothing of the principal.
  • A deduction from the deposit. A percentage of what you paid in, applied when you close before a stated point. This reaches the principal, which the headline rate never warns about.
  • A charge plus commission recovery. A fixed fee with tax, and the collector's commission taken back depending on when you leave, which links your exit cost to how the agent was paid.

Where the money can be reached without closing. 8 institutions publish a loan or overdraft against the collected balance, usually as a stated proportion of it. It is a different product with its own interest cost, not a free withdrawal, and it exists at some institutions and not others.

The silence is the finding. On rates, 12 of the directory publish a figure; on exit terms, 9 do. The absence falls on the part of the product a depositor is least likely to ask about when an agent is standing at the door with a form. Our checklist before opening an account asks for the figure in writing for exactly this reason.

How this sits against the rate

A pigmy scheme already pays less than the same institution's ordinary deposits, for reasons our comparison with recurring deposits sets out. An early-closure term compounds that gap rather than offsetting it: the saver most likely to need the money early is the one the product is aimed at, and is also the one the exit terms fall hardest on. Stating that is not advice about whether to open an account. It is the shape of the arithmetic.

What we could not establish

  • Whether the unpublished terms exist in the account rules. An institution that publishes nothing may still apply a penalty under the rules a depositor signs. We have read the public pages, not the account agreements.
  • How the terms are applied in practice, including whether staff waive them, which no institution publishes and which we have not observed.
  • Whether any institution has changed these terms, because we hold a single observation for most of them. Where an earlier value exists in the dataset, the profile page shows the change and its date.
  • What happens to early closure while an institution is under regulatory restriction, which none of the pages we read addresses.

Questions

What does it cost to close a pigmy account early?
It depends entirely on the institution, and the published terms do not agree with each other. One bank pays no interest at all on an account closed within 12 months. Another deducts 5% of the deposit if it is closed before six months. A third charges a service fee plus GST and recovers agent commission depending on when you close. Several publish nothing at all.
Is there a way to get money out without closing the account?
Some institutions publish a loan or overdraft against the collected balance instead, at a stated proportion of it. That is a different transaction with its own interest cost, and it is only available where the institution offers it.
Why do so many institutions publish nothing?
We do not know, and we have not found an institution that explains it. We record the absence as an absence rather than treating it as nil: a term that is not published may still exist in the account rules you sign.