'If you decide to break the existing FD to renew it at a higher rate, you should be mindful of the penalty that will be levied. It varies from bank to bank and typically ranges from 0.5 per cent to 1 per cent. The penalty is in the form of a reduced interest rate than what was originally promised on the fixed deposit. 'So, any fixed deposit which is maturing in the next six months to one year should not be touched,' said Ankit Jain, Partner, Ved Jain & Associates, a chartered accountancy firm.ĭo remember that banks usually levy a penalty if you break your FD before it matures.

Moreover, you have to pay a premature withdrawal penalty. You will get a lower interest rate for reducing the tenure. If the fixed deposit is nearing maturity, it may not be a wise decision to opt for a premature withdrawal.

While breaking a fixed deposit, you need to keep three things in mind a) When your fixed deposit is maturing, b) the cost of breaking FD - the interest rate that the bank will offer on reduced tenure and the premature penalty that you have to pay c) Additional interest that you are getting on the new FD. Mutual Funds Spend Credit Cards P2P Data Center Fuel Rates Diesel Rates Petrol Rates Bank Pan Number Bank holidays Penny Stocks MF Ratings & NAV Top Performing Schemes Top Star Rated Schemes Top Tax Saving Schemes Highest Risk Adjusted Return New Fund Offers Forthcoming Dividends NPS Top Performing NPS Scheme Most Consistent NPS schemes ETF Perfomance Latest Prices Listed Bonds Traded in Cash Market ULIPs ULIP Schemes Calculators Recurring Deposit Calculator Fixed Deposit Calculator LTCG Tax Calculator Income Tax Calculator Rent Receipt Generator SIP Calculator IFSC Bank Code NPS Calculator Invoice Generator EPF Calculator House Property Income HRA Calculator Sukanya Samriddhi Calculator Education Loan Calculator Car Loan Calculator Home Loan Calculator Personal Loan Calculator Risk Tolerance Calculator Financial Fitness Calculator Interest Rates Recurring Deposit Rates Fixed Deposit Rates Bank Fixed Deposits Rates Post Office Schemes Rates MCLR Loan EMI Participate & Win Stocks & Shares ET Wealth ET Wealth Editions Buy Wealth Magazine ET Wealth Newsletter

Hdfc high return deposit