Reference · 44 banks (24 India, 20 USA)
FD Premature Withdrawal Penalty — Every Bank, Side by Side
The penalty for breaking a fixed deposit ranges from 0.50% to 1.50% in India, and from 60 to 540 days of interest in the USA. Nothing here is fixed by a regulator — every bank sets its own, which is why two deposits of the same size at two banks can cost very different amounts to break. The tables below are the same dataset the FD break calculator uses.
India — FD premature withdrawal penalty by bank
Read the two penalty columns as the cut applied to the interest rate. The rule column explains how each bank gets there. Last verified October 2026.
| Bank | ≤₹5L | >₹5L | Min days | Rule |
|---|---|---|---|---|
| SBI (State Bank of India) | 0.50% | 1.00% | 7 | 0.50% up to ₹5 lakh, 1.00% above ₹5 lakh. No interest if closed within 7 days. Official terms |
| Punjab National Bank | 1.00% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| Bank of Baroda | 1.00% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| Canara Bank | 1.00% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| Union Bank of India | 1.00% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| Bank of India | 1.00% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| Central Bank of India | 1.00% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| Indian Bank | 1.00% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| HDFC Bank | 1.00% | 1.00% | 7 | Flat 1.00% on premature closure, regardless of amount or tenure. Interest is recomputed at the lower of the contracted rate or the rate for the period actually held. Official terms |
| ICICI Bank | 0.50% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| Axis Bank | 1.00% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| Kotak Mahindra Bank | 1.50% | 1.50% | 7 | Card-rate downgrade, then penalty deducted |
| IndusInd Bank | 1.00% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| Yes Bank | 1.00% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| IDFC First Bank | 1.00% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| Federal Bank | 1.00% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| RBL Bank | 0.50% | 0.50% | 7 | Card-rate downgrade, then penalty deducted |
| IDBI Bank | 1.00% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| AU Small Finance Bank | 1.00% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| Equitas Small Finance Bank | 1.00% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| Jana Small Finance Bank | 1.00% | 1.00% | 7 | Card-rate downgrade, then penalty deducted |
| Post Office Time Deposit | 2.00% | 2.00% | 180 | No closure in the first 6 months. 6–12 months earns the 4.00% savings rate. After 12 months, 2.00% is deducted from the applicable TD rate. Official terms |
| Bajaj Finance FD | 1.00% | 1.00% | 90 | Cannot break before 3 months. |
| Shriram Finance FD | 2.00% | 2.00% | 90 | Card-rate downgrade, then penalty deducted |
USA — CD early withdrawal penalty by bank
US banks forfeit days of interest instead of cutting the rate. The forfeit scales with the CD's original term, so a 12-month CD and a 5-year CD at the same bank can have very different penalties.
| Bank | Penalty schedule | Compounding | No-penalty option |
|---|---|---|---|
| Chase Bank | ≤12mo: 90d, ≤59mo: 150d, 36+mo: 180d | daily | — |
| Bank of America | ≤12mo: 90d, ≤60mo: 180d, 36+mo: 365d | daily | — |
| Wells Fargo | ≤12mo: 90d, 36+mo: 180d | daily | — |
| Citibank | ≤12mo: 90d, ≤60mo: 180d, 36+mo: 540d | daily | — |
| US Bank | ≤12mo: 90d, 36+mo: 180d | daily | — |
| Truist Bank | ≤12mo: 90d, 36+mo: 180d | daily | — |
| PNC Bank | ≤12mo: 90d, 36+mo: 180d | daily | — |
| Ally Bank | ≤24mo: 60d, ≤36mo: 90d, ≤48mo: 120d, 36+mo: 150d | daily | ✓ |
| Marcus by Goldman Sachs | ≤12mo: 90d, ≤24mo: 180d, 36+mo: 270d | daily | ✓ |
| Discover Bank | ≤12mo: 90d, ≤36mo: 180d, 36+mo: 540d | daily | — |
| Capital One | ≤12mo: 90d, ≤60mo: 180d | daily | — |
| Synchrony Bank | ≤12mo: 90d, ≤48mo: 180d, 36+mo: 365d | daily | — |
| American Express Bank | ≤12mo: 90d, ≤60mo: 270d | daily | — |
| Barclays | ≤24mo: 90d, 36+mo: 180d | daily | — |
| Sallie Mae Bank | ≤12mo: 90d, 36+mo: 180d | daily | — |
| CIT Bank | ≤12mo: 90d, 36+mo: 180d | daily | — |
| Navy Federal Credit Union | ≤12mo: 90d, ≤36mo: 180d, 36+mo: 365d | monthly | — |
| PenFed Credit Union | ≤12mo: 90d, ≤36mo: 180d, 36+mo: 365d | monthly | — |
| Alliant Credit Union | ≤12mo: 90d, 36+mo: 180d | monthly | — |
| Bread Financial (formerly Comenity) | ≤12mo: 90d, 36+mo: 180d | daily | — |
Why the penalty percentage is only part of the loss
Every Indian bank applies a two-step mechanism. First it downgrades your booked rate to the card rate for the period you actually held the deposit. Then it deducts the penalty percentage. On a ₹10 lakh SBI FD at 7.00% closed after eight months, the 1.00% penalty costs about ₹8,000 — but the total loss is about ₹33,000, because the tenure downgrade and the four months of unearned interest cost another ₹25,000.
This is why shopping for the lowest penalty percentage is only half the decision. A bank with a 0.50% penalty and a steeply tiered card rate can cost more to exit than a bank with a flat 1.00% and a flatter curve. The calculator accounts for both.
Frequently asked questions
Among the banks tracked here, ICICI and SBI charge the lowest penalty at 0.50% for deposits up to ₹5 lakh. For deposits above ₹5 lakh, RBL Bank charges 0.50% while most others charge 1.00%. RBL is the cheapest for large deposits; Kotak Mahindra is the most expensive at 1.50%.
No. Penalties range from 0.50% to 1.50% in India and are set by each bank’s board-approved policy — the RBI does not fix the amount. Some banks vary the penalty by deposit size (SBI, ICICI) and some by tenure (several small finance banks).
No, and this is the most common misunderstanding. The penalty percentage is only part of the loss. The larger part is usually the rate downgrade — the difference between the rate you booked and the card rate for the shorter period you actually held — plus the interest you never earn for the remaining months.
In India there is no statutory cap; the penalty is set by each bank and is typically between 0.50% and 1.50% of the applicable rate. In the USA, penalties run from 60 days to 540 days of interest depending on the CD term, and some banks offer no-penalty CDs.
Bank-specific calculators
Bank penalty rules last verified . Always confirm the current terms with your bank before closing a deposit.