HDFC · India · verified October 2026
HDFC FD Break Calculator — 1% Premature Withdrawal Penalty
HDFC Bank charges a flat 1.00% penalty on premature closure of a fixed deposit, regardless of the deposit amount or the tenure completed. Unlike SBI and ICICI, there is no ₹5 lakh threshold. HDFC then recalculates interest at the lower of your contracted rate or the card rate for the period the deposit actually ran, and deducts the 1.00% from that rate. Interest is paid for the days held, not the full tenure. So the two things that decide your loss are how far short of maturity you close, and whether the shorter tenure would have earned a lower card rate. On a ₹5 lakh two-year FD at 7.00% closed after 14 months, the holding-period rate stays at about 7.00% and the penalty alone costs roughly ₹5,000 of interest. HDFC also permits partial withdrawal from a deposit, which is often the cheaper way out.
- Penalty (all amounts)
- 1.00% flat
- Amount threshold
- None
- Rate used
- Lower of contracted or held-period rate
- Minimum holding period
- 7 days
- Compounding
- Quarterly
- Partial withdrawal
- Allowed on most FDs
HDFC deposit details
HDFC card rates by tenure
These are the rates used to reprice your deposit when it is closed early. Your holding period is mapped to the highest bucket it does not exceed.
| Tenure bucket | General rate | Senior citizen |
|---|---|---|
| 7 days | 3.00% | 3.50% |
| 14 days | 3.00% | 3.50% |
| 1 month | 3.50% | 4.00% |
| 2 months | 4.50% | 5.00% |
| 3 months | 5.75% | 6.25% |
| 6 months | 7.00% | 7.50% |
| 1 year | 7.00% | 7.50% |
| 18 months | 7.10% | 7.60% |
| 2 years | 7.00% | 7.50% |
| 3 years | 7.00% | 7.50% |
Worked examples
Each row is calculated with the same rule the calculator uses: card rate for the period held, minus the penalty, simple interest for the days held.
| Scenario | Rate applied | Penalty | Interest paid | Interest at maturity | Loss |
|---|---|---|---|---|---|
| ₹2,00,000 · 2-year FD at 7.00% · closed after 14 months | 7.00% | 1.00% | ₹13,973 | ₹29,776 | ₹15,804 |
| ₹5,00,000 · 2-year FD at 7.00% · closed after 14 months | 7.00% | 1.00% | ₹34,932 | ₹74,441 | ₹39,509 |
| ₹10,00,000 · 3-year FD at 7.00% · closed after 2 years | 7.00% | 1.00% | ₹1,20,000 | ₹2,31,439 | ₹1,11,439 |
A flat 1% means tenure matters only through the rate downgrade
At SBI and ICICI the size of the deposit decides the penalty. At HDFC it does not — ₹50,000 and ₹50 lakh both pay 1.00%. That makes HDFC comparatively cheaper for large early closures and comparatively dearer for small ones, where SBI would only charge 0.50%.
What still varies is the card rate HDFC applies. A one-year deposit closed after 70 days drops to the 2-month card rate; a three-year deposit closed after two years stays close to your booked rate. The penalty is constant, the downgrade is not.
HDFC uses the lower of two rates — which is good news for you
HDFC states that on premature closure interest is paid at the rate applicable for the period the deposit has run, or the contracted rate, whichever is lower. When card rates have fallen since you booked, the bank cannot claw back the difference through the rate — only the flat 1.00% applies.
This matters if you booked a high-rate FD in a rising-rate cycle and rates have since dropped. Check the card rate table above before assuming your downgrade will be large.
Partial withdrawal is HDFC’s real advantage
Most HDFC fixed deposits allow a partial withdrawal rather than full closure. You take out the amount you need and the residual balance continues at the original rate and original maturity date. Confirm the minimum residual balance at your branch, because it varies by product.
A partial withdrawal is almost always cheaper than closing the whole deposit and rebooking the remainder at today’s rate — you keep the older, often higher, contracted rate on the balance.
How to close an HDFC FD early
On HDFC NetBanking go to Accounts → Fixed Deposits → select the deposit → Premature Closure. On the mobile app the same option sits under the deposit detail screen. Closure is processed instantly for deposits held in your own name.
For joint deposits or deposits with a nominee change pending, the branch route is required. Carry photo ID and the deposit advice. Interest is credited to the linked savings account.
How to close a HDFC FD early
- Open HDFC NetBanking or the mobile app and go to the Fixed Deposits section.
- Select the deposit, choose Premature Closure, and confirm the amount — full or partial.
- Check the closure preview: it shows the applicable rate and the 1.00% penalty before you confirm.
- The net amount is credited to your linked savings account, usually within the same working day.
Frequently asked questions
A flat 1.00% on the applicable interest rate. HDFC does not vary the penalty by deposit amount or by completed tenure, so a ₹1 lakh FD and a ₹1 crore FD pay the same 1.00%.
No. Some older guides quote a 0.50% rate for deposits held 24 months or more, but HDFC’s published term deposit terms apply a flat 1.00% penalty on premature closure. Treat any 0.50% figure you see elsewhere as out of date and confirm at the branch.
Yes, on most HDFC fixed deposits you can make a partial withdrawal. The residual balance keeps the original rate and maturity date. A minimum residual balance applies, so check the product terms before relying on it.
HDFC uses the lower of your contracted rate and the card rate for the period the deposit actually ran, then deducts the 1.00% penalty. Interest accrues for the days held, not for the original tenure.
For a short-term need, usually yes. HDFC lends against its own deposits at roughly 1.00% to 2.00% over the FD rate, and the deposit keeps earning. Compare the loan interest for the remaining months against the permanent loss from breaking.
Sources
Penalty percentages and card-rate buckets re-checked October 2026. Banks revise rates without notice; confirm at the branch or on the bank's site before acting.
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Bank penalty rules last verified . Always confirm the current terms with your bank before closing a deposit.