How to Break HDFC FD: A Complete Guide for Premature Withdrawal

03 July 2025 · Sachin Gadekar

Know how to break HDFC FD online, through the HDFC app, or by visiting a branch. Understand premature withdrawal penalties and how to minimise them.

Introduction

Fixed Deposits (FDs) are one of the safest investment choices for millions of Indians. They guarantee fixed returns and security of capital. But sometimes, you may need to withdraw your money before the maturity date due to urgent financial needs.

If you have an HDFC Bank FD and are wondering how to break HDFC FD online, how to break it through the HDFC app, or what penalty you may have to bear — this guide by Ultra covers it all.

At Ultra, we empower investors with easy-to-understand guides to manage their investments smartly.

Can You Break an HDFC FD Before Maturity?

Yes. HDFC Bank allows premature withdrawal of fixed deposits. However, there are certain rules, conditions, and penalties you must know.

Whether you want to break it online, using the HDFC mobile app, or through branch banking, you have options.

When Do People Break an FD?

People usually break an FD when:

They face an unexpected financial emergency.

They find a better investment opportunity.

They need funds for urgent expenses like medical emergencies, education, or business needs.

While breaking an FD is possible, it is always advisable to do so only when absolutely necessary because of the penalty involved.

How to Break HDFC FD Online

HDFC Bank offers easy digital channels for premature FD withdrawal. Here’s how to break your FD online step by step.

Steps to Break HDFC FD Online via Net Banking

01. Log in to HDFC Net Banking: Go to HDFC Net Banking and log in with your customer ID and password.

02. Go to ‘Accounts’: Click on ‘Accounts’ and choose ‘Transact’.

03. Select ‘Fixed Deposit’: Find your active FD from the list.

04. Choose ‘Premature Closure’: Click on ‘Close FD prematurely’.

05. Confirm Details: The system will show your principal amount, accrued interest, and applicable penalty.

06. Submit Request: Confirm and submit the request. The FD will be broken, and the amount will be credited to your linked savings account.

How to Break FD in HDFC App

HDFC Bank’s mobile app makes it equally convenient. Here’s how to break an FD using the app:

01. Open HDFC Bank Mobile App

02. Tap on Accounts

Go to ‘Accounts’ and find your FD account.

03. Select the FD to Close

Tap on the FD you wish to break.

04. Choose Premature Withdrawal

Click on ‘Premature Closure’ or ‘Close FD’.

05. Review Details & Confirm

Check the net amount after penalty. Confirm the closure.

06. Receive Funds

The amount will be transferred to your linked savings account instantly or within a few hours.

How to Break HDFC FD at Branch

If you prefer offline, here’s how:

01. Visit the Home Branch

Visit the HDFC branch where you opened the FD.

02. Fill the FD Break Form

Ask for the FD Premature Withdrawal Form. Fill in details like FD number, account number, and reason for closure.

03. Attach Identity Proof

Attach a copy of your ID proof if required.

04. Submit & Wait

Submit the form. The bank processes it and credits the amount to your account, usually within the same day.

HDFC Fixed Deposit Premature Withdrawal Penalty

Breaking your HDFC FD early usually attracts a penalty:

HDFC Bank typically charges 1% lower interest rate than the contracted rate for the period the FD was actually held.

For example, if your FD was booked for 1 year at 7% but you break it at 6 months and the 6-month rate is 6%, then you will get 6% minus 1% = 5%.

Some special scheme FDs may have a higher penalty or may not allow premature closure at all.

Can You Break HDFC FD Without Penalty?

Generally, all premature withdrawals incur a penalty. However, certain senior citizen FDs or special terms may have no penalty if stated at the time of booking. Always check the terms and conditions before opening an FD if you think you might need the funds early.

Points to Remember Before Breaking an HDFC FD

Use a Fixed Deposit Break Penalty Calculator to know how much you will lose.

Compare the cost of breaking the FD vs taking a loan against FD — sometimes a loan is cheaper.

Try to break only part of your FD if you have multiple deposits.

If your FD is linked to tax-saving under Section 80C, premature withdrawal may nullify the tax benefits.

Alternatives to Breaking Your FD

Before closing your FD prematurely, consider:

Taking an Overdraft or Loan Against FD: HDFC Bank offers loans against FD up to 90% of the deposit amount.

Using your emergency fund instead.

Partially breaking only the required amount if you have multiple FDs.

FAQs on Breaking HDFC Fixed Deposit

Q1: How to break HDFC FD online?

Q2: How to break FD in HDFC app?

Use the HDFC Bank mobile app, tap your FD account, select ‘Premature Closure’, review and confirm.

Q3: Is there any penalty for breaking HDFC FD?

Yes, HDFC charges up to 1% lower interest than the applicable rate for the tenure you held the FD.

Q4: Can I break HDFC FD without penalty?

Usually, no. Only certain special cases like senior citizen FDs may have zero penalty if specified.

Q5: How long does it take to get the money after breaking the FD?

If done online or via app, the amount is credited instantly or within a few working hours. For branch requests, it may take a day.

Conclusion

Breaking an FD is easy with HDFC Bank’s online and app options, but it’s important to weigh the penalty costs before you proceed.

At Ultra, we help you plan your investments smartly so you rarely need to break your FD. For smarter, more flexible fixed-income opportunities and better liquidity, explore what we offer at Ultra.

Stay informed. Invest better.