Can we withdraw money from a fixed deposit before maturity?

The rules for withdrawing prematurely from a company FD depend on when you choose to withdraw from your deposit.

If no rate has been specified for that period, the interest rate payable is 3% p.a. lower than the minimum interest rate at which the non-banking financial company accepts public deposits.

What is the penalty for premature withdrawal of a fixed deposit?

Investing in fixed deposits for a specific tenor helps you earn steady interest rates. However, unforeseen circumstances may warrant urgent financing, and you may want to liquidate your savings before the tenor ends.

Disadvantages of withdrawing prematurely:

  • Loss of interest
    You may have to forego the interest accumulated or earn at a lower rate.
  • Economic uncertainty
    You may lose out on a source of emergency funding.

Instead of withdrawing prematurely, consider a loan against a fixed deposit to obtain cash flow without liquidating your savings.

Login to Bajaj Finserv Portal to withdraw premature FD.

When you invest in a Bajaj Finance Fixed Deposit, there is a lock-in period of 3 months. Should you decide to premature your deposit after 3 months, a loss of interest is applicable as per RBI guidelines.

Here’s a quick look at the features and benefits offered on fixed deposits by Bajaj Finance.

Interest rate

up to 7.75% p.a.

Minimum tenor

1 year

Maximum tenor

5 years

Deposit amount

Minimum deposit of Rs. 15,000

Application process

Easy and paperless online process

Online payment options

Netbanking and UPI

How is premature FD penalty calculated

The penalty for breaking a firm FD early is determined by when the FD was broken. The fixed deposit early withdrawal penalty in Bajaj Finance FD is shown below.

Withdrawal Time (after deposit)

Is withdrawal allowed?

Principal Amount Received

Interest Amount Received

Within 3 months

No

NA

NA

Within 3-6 months

Yes

Yes

No

After 6 months

Yes

Yes

Interest shall be payable at a rate which is 2% lower than the rate specified for the period during which the deposit has been opened. In case no rate is specified for the Deposit period, interest rate payable shall be 3% lower than the lowest rate being offered by the Company.


For withdrawal within 3 months: In the event of death of a depositor, the Company may repay the Deposit prematurely (irrespective of the lock in period) to the surviving depositor (which in the case of joint holders will be the first in the sequence of applicants in the Application) or to the nominee/ legal heir(s) of the deceased depositor, upon the request of surviving depositor/s/nominee/legal heir, as the case may be, and subject to submission of proof of death and other requisite documents to the satisfaction of the Company.

Use Fixed Deposit Interest rates Calculator to plan your finances if you’d like to know your maturity amount and returns on your FD in advance.