FD premature withdrawal calculator
Enter your FD, how long it has run and your bank's penalty. See what you'd get now.
- Penalty included
- Bank rules explained
- Free, no sign-up
FD interest and tax
FD interest is taxed each year as it accrues, at your slab rate, even on a cumulative FD.
Questions people often ask
Is the penalty deductible?
No, but you're only taxed on the interest you actually earn.
Can I break a tax-saving FD?
No. The 5-year tax-saver FD under 80C can't be broken early.
How breaking an FD works
A lower rate for a shorter time.
- The rate for the period it actually ran.
- Less the penalty, often 0.5% to 1%.
- Capped at your FD's own rate.
Last reviewed 9 October 2026. The rules in this calculator come from these official sources.
- Reserve Bank of India: deposits and depositors Reserve Bank of India
Common questions
How is interest worked out when I break an FD?
At the rate the bank offered, when you opened it, for the period the FD actually ran, minus a penalty, and never more than your FD's own rate.
What is the penalty?
Usually 0.5% or 1% off that rate. Some banks waive it for senior citizens or after a minimum period.
What do I get from a ₹5 lakh FD broken after a year?
If the 1-year rate was 6.5% and the penalty 1%, interest is at 5.5%: about ₹5.28 lakh.
Is it better to take a loan against the FD?
Often. A loan against an FD usually costs 1% to 2% above the FD rate, and your FD keeps earning.
Can I break part of an FD?
Some banks allow partial withdrawals. Check your bank's terms.
