SBI · India · verified October 2026
SBI FD Break Calculator — Premature Withdrawal Penalty
SBI charges a 0.50% penalty on premature closure of a fixed deposit up to ₹5 lakh, and 1.00% on deposits above ₹5 lakh. The penalty is deducted from the interest rate, not the principal. SBI first replaces your booked rate with the card rate for the tenure you actually held, then subtracts the penalty from that rate, and pays simple interest for the days held. No interest is paid at all if the deposit is closed within 7 days. Senior citizens keep their +0.50% rate advantage on the card rate, but the penalty is unchanged. On a ₹10 lakh one-year FD at 7.00% closed after eight months, the penalised rate works out to 5.85% and the payout is about ₹10,38,947 against ₹10,71,859 at maturity.
- Penalty up to ₹5 lakh
- 0.50%
- Penalty above ₹5 lakh
- 1.00%
- Minimum holding period
- 7 days
- Compounding
- Quarterly
- Senior citizen boost
- +0.50% on card rate
- Penalty applied to
- Interest rate, not principal
SBI deposit details
SBI 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% |
| 45 days | 3.75% | 4.25% |
| 2 months | 5.50% | 6.00% |
| 3 months | 6.25% | 6.75% |
| 6 months | 6.75% | 7.25% |
| 9 months | 6.85% | 7.35% |
| 1 year | 6.85% | 7.35% |
| 18 months | 6.85% | 7.35% |
| 2 years | 7.00% | 7.50% |
| 3 years | 6.50% | 7.00% |
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 |
|---|---|---|---|---|---|
| ₹1,00,000 · 1-year FD at 7.00% · closed after 8 months | 6.75% | 0.50% | ₹4,161 | ₹7,186 | ₹3,025 |
| ₹5,00,000 · 1-year FD at 7.00% · closed after 8 months | 6.75% | 0.50% | ₹20,805 | ₹35,930 | ₹15,125 |
| ₹10,00,000 · 1-year FD at 7.00% · closed after 8 months | 6.75% | 1.00% | ₹38,281 | ₹71,859 | ₹33,578 |
The ₹5 lakh threshold is a cliff, not a slope
Crossing ₹5 lakh in a single deposit doubles the SBI penalty, from 0.50% to 1.00%. SBI applies the threshold per deposit, not per customer, so a ₹10 lakh deposit booked as two separate ₹5 lakh FDs pays 0.50% on each if both are closed early.
That single structuring decision is usually worth more than any negotiation at the branch. If you expect to need part of the money before maturity, book two or three deposits at different tenures instead of one large one.
You lose the quarterly compounding as well as the rate
SBI compounds interest quarterly while the deposit runs. On premature closure the bank pays simple interest for the days held at the penalised rate. That means the loss on the results card is made of three parts: the tenure downgrade, the 1.00% penalty, and the compounding you never reach.
This is why the total loss figure always exceeds "penalty percentage × amount". The calculator shows all three separately so you can see which one dominates in your case.
An overdraft against the FD usually costs less than breaking it
SBI offers a loan or overdraft against a term deposit for up to 90% of the deposit value, priced at roughly 1.00% to 2.00% above the FD rate. The deposit keeps earning, there is no penalty, and you can repay whenever you like without a prepayment charge.
If you only need the money for a few months, compare the OD interest for that short window against the full loss shown by the calculator. The OD is almost always cheaper because the loss on breaking is permanent.
How to close a SBI FD early
- Log in to YONO or SBI internet banking and open the Deposits section. Select the FD and choose premature closure (the option appears only once the 7-day minimum has passed).
- Alternatively, visit the branch where the deposit was booked with your passbook, a withdrawal slip and photo ID. Joint deposits need both holders, or the surviving holder with a death certificate.
- Interest is credited to your linked savings account, normally the same day for net banking or the next working day at the branch.
- Ask for a closure advice showing the card rate applied, the penalty deducted and the net interest paid. Keep it — you need those numbers if you later reconcile the TDS entry in Form 26AS.
Frequently asked questions
0.50% for deposits up to ₹5 lakh and 1.00% for deposits above ₹5 lakh. The percentage is deducted from the interest rate applicable to the period the deposit actually ran, and interest is then paid at that penalised rate for the days held.
No. The penalty is a rate reduction, not a charge on your deposit. Your principal is returned in full. The only case where the amount you receive can fall below the principal is where the penalty exceeds the interest earned — which is why no interest is paid at all in the first 7 days.
SBI generally requires full closure of a single term deposit. Partial withdrawal is available through a loan or overdraft against the deposit, or by booking multiple smaller FDs at the outset. Splitting deposits is the practical way to get partial liquidity without a penalty.
No. The penalty percentage is the same. What changes is the card rate the penalty is applied to, because senior citizens earn +0.50% on SBI term deposit rates. A senior citizen therefore loses slightly more in absolute rupees, but the penalty rate is identical.
Yes. Tax is computed on the interest credited, not on what remains after the penalty. SBI deducts TDS at 10% once interest from the bank exceeds ₹50,000 in a financial year, or ₹1,00,000 for senior citizens, under Section 194A.
SBI publishes a card rate table by tenure bucket — 7 days, 14 days, 1 month, 2 months, 3 months, 6 months, 9 months, 1 year, 18 months and so on. Your holding period is mapped to the highest bucket that does not exceed it, and that rate is used.
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.