How to break your FDs before maturity

Here's a lowdown on the steps involved in breaking your fixed deposits in case of urgent need of finances.
OPEN FD
How to break your FDs before maturity
OPEN FD
3 mins
21 January 2025

How to break your FDs: Emergencies warrant immediate cash flow, which is why most people opt for breaking their fixed deposits. Fixed deposits are excellent investment instruments for emergencies, where you can set aside some amount. Financiers like Bajaj Finance Limited provide you with an option to take a loan against fixed deposits, so that you can tend to emergencies easily.

Pro tip

Bajaj Finance offers attractive Fixed Deposit interest rates of up to 7.40% p.a. for non-senior citizens, and up to 7.95% p.a. for senior citizens, inclusive of an additional rate benefit of up to 0.55% p.a.

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To avoid delays and speed up premature FD withdrawals, here’s what you need to know:

Online application process for breaking Fixed Deposits

Breaking an FD online can help you save time and avoid unnecessary hassle. Here’s what could help you with an online process to withdraw your funds prematurely:

  • Visit your lender’s website
  • Login by entering your user ID and password and go to the service request section
  • Select the option prompting for ‘Premature Closure of Fixed Deposits’
  • Enter your FD number and submit a cancellation request

Usually, the process for premature fixed deposit closure remains the same throughout all financiers. An online option evades the hassles of paperwork and appointments with the lender.

Offline application process for breaking Fixed Deposits

Though the online procedure is much more convenient, offline methods are popular when you cannot access the internet. The two primary steps for this procedure are:

  • Complete and submit the premature FD withdrawal form. Make sure you enter the requested details such as your FD number, your name, bank account details and so on.
  • Submit this form with ID proof, such as a photocopy of your PAN card, after which your FD will end. The money will be credited to your account either online or offline through a cheque into your bank account.

What should you remember when you break your FDs prematurely?

  • The offline application procedure could be time-consuming if you have to travel a long distance to your financier.
  • The online application requires you to have access to high-speed internet and a computer.
  • Have all documents and details about your fixed deposit handy to speed up the process further.

Understand both procedures so that you can make the right choice. Also, avoid investing in long-term FDs if you anticipate several financial commitments.

Fixed deposit variants

Highest Credit Ratings | Trusted with over 1.4 million Deposits | Assured Returns on FD
Recommended

FD - Special Tenure -18 Months

INTEREST RATES UP TO
7.95% p.a.
Invest Online

FD - Special Tenure - 22 Months

INTEREST RATES UP TO
7.85% p.a.
Invest Online

FD - Special Tenure - 33 Months

INTEREST RATES UP TO
7.75% p.a.
Open FD

FD - Age below 60

INTEREST RATES UP TO
7.40% p.a.
Open FD

FD - Senior Citizen

INTEREST RATES UP TO
7.95% p.a.
Open FD

FD – Minor

INTEREST RATES UP TO
7.40% p.a.
Open FD

How does the premature withdrawal of fixed deposits affect your interest calculation?

This is because when you break an FD, you might also lose out on interest or be eligible to pay the penalty. So, evaluate other ways of raising finance before you decide to break your fixed deposit, or you can check FD Interest Rates first before going further.

Bajaj Finance is now offering an attractive rate of interest of up to 7.95% p.a. on our fixed deposits.

Important Points to Remember When Breaking FD Prematurely

When determining whether to make an early withdrawal of FD, there are some crucial considerations that you should keep in mind. As follows:

  • Breaking FD offline can take some time, especially if the branch is far away. Online premature withdrawal of FD requires both a gadget that can handle the process and high-speed internet.
  • Keep all the documentation and documents close at hand to expedite the premature withdrawal of FD.
  • Make sure you are familiar with both processes before choosing any approach, then decide.
  • If you anticipate having multiple financial obligations, choose a short-term fixed deposit.
  • Either you will forfeit interest income, or you will be responsible for paying FD breaking fees.

Calculate your expected investment returns with the help of our investment calculators

Investment Calculator

FD Return Calculator

Sukanya Samriddhi Yojana Calculator

PPF Calculator

Recurring Deposit Calculator

Provident Fund Calculator

Gratuity Calculator

Frequently Asked Questions

What is the Digital FD offered by Bajaj Finance?

Bajaj Finance has launched a new FD type called "Bajaj Finance Digital FD" for a period of 18 months. Bajaj Finance is providing one of the highest interest rates of up to 7.95% p.a. for senior citizens and for the customers below the age of 60 they are providing up to 7.40% p.a. The Digital FD can be booked and managed only through the website or app.

How do I break my fixed deposits?

To break your fixed deposit online through the Bajaj Finance website or app.

How to withdraw an FD online?

To withdraw an FD online, log in to your account, locate the FD section, select the FD you wish to withdraw, and follow the online instructions provided by your FD provider. Keep in mind that online FD withdrawals may have specific conditions and processing times.

Are their penalty charges for premature closure of FD?

Yes, banks and NBFCs typically impose a penalty for prematurely closing an FD account, and the amount may vary between different financial institutions and types of deposits.

What are the penalty charges for premature closure of FD?

The penalty for premature closure is usually a percentage of the earned interest, with this percentage varying among different financial institutions.

Can the FD account be broken without any penalty?

While many financial institutions charge a penalty for breaking an FD, some exceptions exist.

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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.