HDFC Bank FD Premature Withdrawal

HDFC Bank FD Premature Withdrawal Penalty Charges

The table below summarises the applicable HDFC Bank FD premature withdrawal rules for different FD categories.

Premature withdrawal rules and penalty rates are updated as per prevailing HDFC Bank guidelines as of 3rd September 2026.

How Interest Is Recalculated on Premature FD Closure

In case the term deposit is withdrawn by the depositor before the date of its maturity, the interest will be paid by HDFC Bank for the period for which the term deposit was actually with the bank and not at the stated interest rate. The applicable interest rate is calculated as follows:

Applicable Interest Rate = Rate applicable on the date of deposit for the period the deposit remained with the bank, reduced by 1 percentage point.

Interest on Domestic and NRO Term Deposits shall not be payable if the deposit is withdrawn before completion of 7 days.

Step-by-Step Calculation Example

Consider an illustrative HDFC Bank FD booked for a 1-year tenure at an interest rate of 6.25% p.a. and prematurely ended after 9 months and 1 day.

Assuming 5.75% p.a. is the applicable HDFC FD interest rate for the period the deposit remained with the Bank, a 1 percentage-point reduction gives an applicable rate of 4.75% p.a.

How to Close an HDFC Bank FD Prematurely

HDFC Bank provides premature liquidation through applicable banking channels, subject to the deposit type and account eligibility.

Online Method

Below, explore how to close an HDFC Bank FD online in steps.

• Log in: Access HDFC Bank NetBanking or the mobile banking app using your credentials.

• Navigate to deposits: Go to the Fixed Deposit section from the main dashboard menu.

• Select the FD: Choose the specific fixed deposit account you want to close early.

• Choose premature closure: Select the available premature-closure or liquidation option for the FD.

• Review recalculated interest: Review the revised payout amount and applicable interest details.

• Confirm the request: Authenticate and submit, and the proceeds are credited to your account.

Offline Method

All customers who prefer an in-person process can complete premature closure at any branch through the steps below:

• Visit the branch: Visit the nearest HDFC Bank branch to request premature liquidation.

• Carry ID proof: Carry the identification and other documents required by HDFC Bank for the premature closure request.

• Fill the closure form: Complete the premature closure form available at the branch counter.

• Submit the FD receipt: Submit the FD receipt/advice if required by HDFC Bank for the closure request.

• Complete verification: Branch staff verify your documents and process the closure request.

• Receive credited proceeds: The premature-liquidation proceeds are paid according to HDFC Bank’s applicable procedures.

Exceptions and No-Penalty Conditions

Some deposits have different withdrawal conditions, although HDFC Bank enables premature closure of FD in some particular cases.

• Death of the Primary Holder: If the bank meets all the criteria with the proof of death and other details, it might close the FD before maturity. In the situation of the depositor’s death, premature liquidation of the term deposit is allowed without penal charges.

• Joint Deposits with Survivorship Clause: For a joint FD with a survivorship clause, HDFC Bank may pay the FD proceeds prematurely to the surviving depositor(s), on request, following the death of one or more joint depositors.

• NRE and FCNR Deposits: HDFC Bank does not charge any penalty for premature withdrawal of NRE or HDFC FCNR deposits. But the interest payment is subject to the other restrictions and circumstances.

• Tax Saver FD: HDFC Bank Tax Saver FD does not allow premature withdrawal during the lock-in period of 5 years. If you want money immediately, you cannot prematurely withdraw the Tax Saver FD.

Callable and Non-Callable FDs in HDFC Bank

Callable deposits permit premature FD withdrawal subject to the penalty and recalculation rules. For deposits of ₹2 crore and above, HDFC Bank Non-callable deposit option is subject to the applicable terms and prevailing rates. The Non-callable deposit does not provide a premature withdrawal facility and is subject to HDFC Bank’s applicable interest-rate schedule.