Should I break my FD?

Rates went up after you opened your FD? See whether breaking it and moving to today's best rate beats staying, after the bank's penalty.

Questions people ask

What happens when I break an FD early?

The bank pays interest at the rate it offered, when you opened the FD, for the period it actually ran, minus a penalty of usually 0.5% to 1%. Most banks pay no interest if you close it within 7 days.

When is it worth breaking an FD?

When the rate you can get today for the time that is left is clearly higher than your FD's rate. The calculator shows the exact rate at which switching breaks even.

Can I avoid the penalty?

Some banks waive it if you move the money into a new, longer FD with the same bank. Ask your branch before you break the FD.

Does tax change the answer?

Rarely. Interest is taxed at your slab whichever way you choose, so comparing the amounts before tax gives the same answer in almost every case.

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Plan a lump sum, build an FD ladder, or work out an FD, RD, PPF, SCSS, POMIS or savings account with today's rates.

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