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About this tool
What you actually get for breaking a fixed deposit early, and whether a loan against the FD would leave you better off.
This calculator shows what a bank actually pays when you close a fixed deposit before its maturity date: interest is recomputed at the card rate for the period the deposit really ran, then reduced by the bank's premature closure penalty, which is typically 0.50 to 1.00 percentage points. It also runs the alternative — borrowing against the deposit and letting it mature — and compares the two on what you hold at the original maturity date. Useful when you need cash mid-term and want to know which route costs less.
Open FD Premature Withdrawal Penalty Calculator on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
Applies the card rate for the run period first, which usually costs more than the penalty itself.
Values both routes at the original maturity date, so the shorter and longer horizons line up.
Flags when the penalty wipes out the whole rate, or when breaking cannot raise the cash you need.
Most Indian banks levy 0.50% to 1.00% on the applicable rate, set by their own board-approved policy under the RBI Master Direction on Interest Rate on Deposits. The bigger loss is usually the repricing: interest is recalculated at the card rate for the period the deposit actually ran, not the rate you booked.
The rate the bank quotes for a deposit of the length yours actually ran, minus the penalty. So a 3-year deposit booked at 7.2% but closed at 14 months earns the 12–18 month card rate, say 6.8%, less a 1% penalty — 5.8% — applied with quarterly compounding.
Often yes, especially close to maturity. The loan is priced about 1 to 2 percentage points above your deposit rate and you pay interest only on what you borrow for the months left, while the deposit keeps earning its contracted rate on the full amount instead of being repriced downward.
No. A term deposit that has run for fewer than seven days earns no interest at all, so a deposit closed in the first week returns only the principal. Interest also stops accruing at the contracted rate for any period beyond the maturity date unless the deposit has an auto-renewal instruction.
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