FD Breaking Calculator

FD Breaking Calculator: Whether to break your FDs or not!

If you’ve been up-to-date, you’d know that over the last year RBI has increased bank interest rates by 2.4%. This has led to an increase in FD interest rates across all banks. Gone are the days of low-interest rates on FDs, and this isn’t an opportunity to miss out on. 

If you’re still stuck with your old FD and missing out on the new interest rates, it’s time to switch over. Confused if this will be beneficial? Here’s a calculator to help you figure out what breaking your FD might really cost you.

Get in touch with your bank

If you’ve made up your mind about breaking your FD, you’d have to be aware of the regulations and penalties surrounding this (especially in the case of a premature withdrawal). You can get more information about this by either reaching out to your bank representative or checking out your bank’s website. Take a good look at the process and ensure you gather all the documents you need. 

Calculate your penalty charges

Breaking an FD before maturity can lead to getting some penalty charges levied. Look out for these in the fine print -

1. Penalty fees - These can either be a percentage of the principal amount or the principal interest earned. Banks can levy penalty fees on early withdrawal.
2. Interest rate reduction - Breaking your FD prematurely can result in your bank reducing the initial interest rate offered to you. Keep an eye out for the returns you get.
3. No interest - Taking the previous point ahead, some banks might not pay any interest on your invested amount. Have a discussion with your bank beforehand to see if this can be negotiated.
4. Partial Penalty - You may choose to withdraw only partially from your FD instead of breaking it altogether. In this case, you might face some panty charges on the partially withdrawn amount.

Get started, again!

This one’s quite simple. Check out the banks or aggregators you’d want to try out this time around. Look into policies and interest rates and get started. Don’t forget to use the above given FD calculator to have a clear understanding of what breaking your FD might bring in.

You can top this up by getting a cleaner investing experience by shifting to the Stable Money app. Interested? Stay tuned to know when we’re live or join our Waitlist today