FD Premature Withdrawal Penalty Calculator
What breaking an FD early really pays — applicable-rate rule plus penalty, versus a loan against the FD.
Formula
Disclaimer: Interest rates shown are recent indicative values — banks revise FD cards and the government notifies small-savings rates quarterly. Verify the current rate before investing. Not financial advice.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
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About FD Premature Withdrawal Penalty Calculator
Breaking an FD costs more than the advertised penalty, and most depositors discover it at the counter: the bank re-prices your ENTIRE holding at the card rate for the period you ACTUALLY stayed (always lower than your booked long-tenure rate), and then subtracts the 0.5–1% penalty from that. The defaults — a 7.25% five-year FD broken at 14 months — earn an effective 5.5%, not 6.25%. Before breaking, price the alternative banks rarely volunteer: a LOAN AGAINST FD at booked-rate-plus-1-2%, up to 90% of the deposit value. For short cash needs, borrowing at ~9% against an FD still compounding at 7.25% costs far less than crystallizing the break haircut — especially deep into the tenure when you'd forfeit accumulated rate differential on the whole period. Structural prevention beats arithmetic cures: ladder deposits (only one rung ever needs breaking — see the laddering calculator), keep the emergency fund OUT of long FDs (sweep-in/short FDs exist for that), and check sweep-FD terms before relying on them — some banks' auto-sweep breaks chunks LIFO with the same applicable-rate rule, quietly applying this calculator's math to your 'savings account'.
How to use FD Premature Withdrawal Penalty Calculator
- 1Enter FD principal, Booked rate (original tenure) (%), Card rate for the period you actually held (%), Penalty (%), Held for (months) into the FD Premature Withdrawal Penalty Calculator.
- 2The result is computed automatically using Break payout compounds at (applicable rate for actual period − penalty), NOT the booked rate — there is no button to press; it updates live as you type.
- 3Change any input to model a different scenario, then use “Copy result link” to share the exact numbers.
Why use FD Premature Withdrawal Penalty Calculator?
- ✓Computes fd premature withdrawal penalty calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter are never uploaded or stored
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
FD todne par exactly kaise calculate hota hai?+
Do-step: (1) bank dekhta hai aap kitna time RUKE — us period ka card rate lagta hai (booked nahi); (2) usme se penalty (0.5–1%) ghat'ti hai. 5-saal wali 7.25% FD ko 14 mahine me toda to 14-mahine ka rate (maan lo 6.5%) − 1% = 5.5% par hisaab hoga. Booking ke din ka lamba-tenure rate sirf poora tenure nibhane par milta hai.
Loan against FD kab better hai todne se?+
Lagbhag hamesha jab need chhoti ya temporary ho: 90% tak amount, rate booked+1–2% (~9%), FD chalti rahti hai 7.25% par — net cost ~1.5–2% sirf borrowed amount par, sirf utne din ke liye. Todne ka haircut poore principal par lagta hai. Sirf tab todein jab paisa lambi avadhi ke liye chahiye ya FD abhi bilkul naya ho.
Kya koi FD bina penalty ke toot'ti hai?+
Kuch banks 'no-penalty FD' variants dete hain (thoda kam rate par), 7-din-class chhoti FDs me penalty practically irrelevant hai, aur kai banks ₹5 lakh se chhoti FDs par penalty waive karte hain — card ke footnotes padhein. Tax-saver FD ulta extreme hai: 5 saal tak todna allowed hi nahi.
Sweep-in FD me bhi yeh sab lagta hai kya?+
Haan — auto-sweep units todte waqt wahi applicable-rate + penalty math chal sakta hai (bank-specific; kuch sweep products penalty-free hote hain par applicable rate to lagega hi). Sweep facility convenient hai par 'savings jitna liquid, FD jitna paying' wala dawa aadha hi sach hota hai. Apne bank ke sweep terms ek baar padh lein.
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