How to Break FD in ICICI Bank Online: Complete Guide
16 July 2025 · Sachin Gadekar
Everything You Need to Know to Close Your ICICI Fixed Deposit Online
Why You May Need to Break an ICICI Bank FD
Fixed Deposits (FDs) are among the most popular savings options for investors in India, thanks to their safety, guaranteed returns, and attractive ICICI Bank FD rates. But sometimes, you might need to break your FD before maturity due to urgent financial needs. If you hold an FD with ICICI Bank, you can easily close it online without visiting a branch.
This guide by Ultra, your trusted platform for smart investing, explains how to break FD in ICICI Bank online, how it affects your returns, things to check before premature withdrawal, and more.
Why You May Need to Break an ICICI Bank FD
While FDs provide guaranteed returns at fixed ICICI FD interest rates, life’s uncertainties can lead to sudden financial needs. People usually break their FDs early to:
Meet unexpected medical expenses.
Fund urgent education or travel costs.
Grab better investment opportunities offering higher returns.
Manage sudden liquidity crunches.
ICICI Bank FD Rates and Premature Withdrawal
Before breaking an FD, it is important to understand how ICICI Bank FD rates and interest payouts work.
ICICI Bank offers competitive FD rates for different tenures. However, if you withdraw before maturity, the bank will adjust the interest payable. Typically:
You earn interest for the period the FD was actually held.
The rate applicable is the rate for the actual tenure at the time of booking.
A premature withdrawal penalty (often 0.50% to 1%) may apply.
It is wise to check the ICICI FD rates and read the terms carefully to estimate the impact.
How to Break FD in ICICI Bank Online: Step-by-Step Process
ICICI Bank provides easy digital banking options to help customers close their FDs online through net banking or the iMobile Pay app.
1. Log in to ICICI Bank Net Banking
Visit ICICI Bank’s official site.
Click on ‘Login’ for Personal Banking.
Enter your User ID and Password.
2. Go to the Fixed Deposit Section
Once logged in, select ‘Deposits’ from the menu.
Click on ‘Fixed Deposit Details’.
3. Select the FD You Wish to Break
You will see a list of your active FDs.
Choose the FD you want to close prematurely.
4. Click on ‘Premature Withdrawal’
Select the option to close or break your FD.
Confirm the amount and account where you want the proceeds credited.
5. Verify and Confirm
Review the details carefully.
Accept the terms and conditions.
Submit the request.
6. Get Confirmation
Once confirmed, the funds are credited to your linked savings account, usually on the same day.
How to Break ICICI FD Using iMobile Pay App
Prefer banking through your phone? Use the ICICI iMobile Pay app:
1. Log in with your credentials.
2. Tap on ‘Accounts & Deposits’.
3. Select ‘Deposits’ and pick the FD.
4. Click on ‘Close FD Prematurely’.
5. Confirm the details and complete the process.
Important Points to Remember Before Breaking Your ICICI FD
Penalty Charges: Premature withdrawal can reduce your overall returns due to penalties.
Minimum Tenure: Many banks don’t allow withdrawal within 7 days of booking an FD.
Tax Impact: Interest earned is taxable. Premature closure does not give any special tax benefit.
Better Alternatives: Consider other short-term borrowing options like OD Against FD if you want funds but wish to continue earning interest. Read our detailed article on Overdraft Against FD.
Should You Break Your FD or Look for Better Options?
Sometimes, instead of breaking an FD, exploring higher-yield investments may be better. At Ultra, we help you discover smart alternatives better than FD — such as bonds, leasing, invoice discounting, and more.
Final Thoughts
Breaking an FD should be your last option if you can manage your liquidity through other means. However, ICICI Bank makes it convenient to break an FD online, saving you time and effort.
Ultra recommends comparing the penalty, alternative options, and your immediate need for funds before making a final decision.
For step-by-step guides on FD management, also check:
FAQs on Breaking FD in ICICI Bank
Q1: Can I close my ICICI FD before maturity?
Yes, ICICI Bank allows premature withdrawal of fixed deposits with applicable penalties.
Q2: How much penalty is charged for breaking an ICICI FD?
Usually, 0.50% to 1% is deducted from the applicable interest rate. Terms may vary.
Q3: How long does it take to get funds after breaking an FD online?
The amount is generally credited instantly or within one working day to your savings account.
Q4: Is there a minimum lock-in period before I can break my FD?
Yes, generally you cannot withdraw within the first 7 days of FD booking.
Q5: Can I break my ICICI FD offline?
Yes, you can also visit your nearest branch to close an FD, but online closure is faster.