This FD premature withdrawal calculator shows what you receive if you break a fixed deposit before its maturity date, and how much interest the early exit costs you. Supply the deposit, its booked rate, the bank's card rate for the shorter period it really ran, the penalty and the months completed. The result shows the payout, the rate applied and the interest lost.
Before you break an FD, the page also explains a cheaper alternative that often works for short needs.
At a glance
- Usual ruleRate for the period actually run, minus a penalty
- Typical penalty0.5% to 1%
- Example₹2 lakh booked at 7.25%, broken after 14 months
- Rate applied6.75% − 1% = 5.75%
- You get₹2,13,775
- Interest given upAbout ₹3,713
How the FD premature withdrawal calculator works
Most banks calculate interest on a broken FD as if it had been booked for the period it actually ran, using the rate card that applied on the booking date for that shorter period, or the booked rate if that is lower. They then subtract a penalty.
Example: ₹2,00,000 booked for 3 years at 7.25%, broken after 14 months. The bank's rate for a 14 month deposit on the booking date was 6.75%. With a 1% penalty, the rate applied is 5.75%, compounded quarterly for 14 months. You receive ₹2,13,775. Had the deposit continued at 7.25% for those 14 months, it would have been about ₹2,17,488, so the early exit costs about ₹3,713.
FD premature withdrawal penalty calculator: a second example
₹5,00,000 booked at 7%, broken after 24 months, with a bank rate of 6.5% for 2 years and a 0.5% penalty. Rate applied: 6%. Payout: ₹5,63,246. Interest given up compared with the booked rate: about ₹11,195.
The loss grows with the size of the deposit, the gap between the booked rate and the shorter period's rate, and the penalty. Some banks waive the penalty if you reinvest the money in a new FD with them, or for senior citizens, so ask.
Cheaper alternatives to breaking an FD
- Overdraft against the FD: draw up to roughly nine tenths of its value at a small margin over its own rate, and the deposit goes on earning. For a few weeks' need this usually costs far less; work it out in the OD interest calculator.
- Partial withdrawal: some banks allow breaking only part of an FD.
- Ladder future FDs: split savings into several FDs maturing at different times, so you rarely need to break one.
Rules worth knowing
- Tax saving FDs cannot be broken before 5 years.
- Many banks pay no interest if an FD is broken within 7 days.
- Some non callable deposits, often for large amounts, cannot be broken at all in exchange for a higher rate.
- India Post deposits have separate rules, covered on the post office TD page.
- TDS already deducted is adjusted on the final interest.
The deposit receipt or the bank's terms page lists the exact penalty.
Should you break it
Break an FD if the need is real and long, and borrowing would cost more over that time. Do not break it to chase a slightly higher rate elsewhere unless the new rate, after the penalty, clearly wins over the remaining term; the FD calculator lets you compare both paths. For money you may need suddenly, keep a separate emergency fund in a savings account or a sweep facility, as shown on the savings interest calculator page.
Frequently asked questions
What is the penalty for breaking an FD?
Typically half a percent to one percent, taken off the rate for the time the money stayed. Some banks waive it in certain cases.
How is interest calculated on premature FD withdrawal?
At the rate that applied for the shorter period on the booking date, or the booked rate if lower, minus the penalty, for the time the deposit ran.
Can I break a tax saving FD?
No. Tax saving FDs have a 5 year lock in.
Is an overdraft better than breaking an FD?
For short needs, often yes. The extra cost is a point or two over the deposit's own rate, charged only on what you use, and the deposit keeps earning.
Do I get any interest if I break an FD within a week?
Many banks pay none if the deposit is closed within 7 days.
Can I withdraw part of an FD?
Some banks allow partial withdrawal; the withdrawn part is treated as broken early.