ICICI Bank FD Premature Withdrawal

ICICI Bank FD Premature Withdrawal Penalty Charges

A 1% premature withdrawal penalty is generally stated, while the detailed rate table specifies a 1.50% charge for long-tenure deposits of ₹25 crore and above. The table below reflects the more detailed penalty structure.

Premature withdrawal rules and penalty rates updated as per prevailing ICICI Bank guidelines as of October 2026.

How Interest is Recalculated on Premature FD Closure

ICICI Bank applies the rate effective on the date of booking for the period the deposit actually remained with the bank, after applying the appropriate premature-withdrawal penalty, for premature closure. The contracted rate for the original tenure does not continue to apply after premature closure.

Effective Rate = Rate applicable on the booking date for the period the FD remained with the bank − applicable premature-withdrawal penalty

Step-by-Step Calculation Example

If you invest ₹4 lakh in a domestic ICICI Bank fixed deposit for 3 years at 6.45% p.a. The FD is closed after 8 months. So, 8 months falls within the 185 days to less than 1 year tenure band. Hence, the penalty will be 0.50%.

Assume that the ICICI Bank FD rate on the booking date for the 185 days to less than 1 year period was 5.50% p.a. This means the effective rate is 5.00% p.a., which is 0.50% less. You can also estimate your specific payout using an ICICI Bank FD premature withdrawal calculator.

How to Close an ICICI Bank FD Prematurely

ICICI Bank offers two methods for premature closure online and offline, with a defined process for each. The online procedure below follows the standard NetBanking and iMobile flow and should be verified against ICICI Bank’s latest process before publication.

Online Channel (NetBanking / iMobile App)

You can request premature closure of an FD online by following these steps:

• Log in: Access ICICI Bank NetBanking or the iMobile app using your credentials.

• Go to deposits: Go to the FD section from the main dashboard menu.

• Choose the FD: Next, select the exact fixed deposit account from which you want to withdraw early.

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

• Choose premature closure: Select the closure or liquidation option for that deposit.

• Review recalculated interest: Check the revised payout figure before confirming the request.

• Confirm the request: Authenticate the transaction, and the proceeds are credited within one working day.

Offline Channel (Branch Visit)

You can also request premature closure of your ICICI Bank Fixed Deposit by visiting a branch and completing the following steps:

• Visit the branch: Go to any ICICI Bank branch with your account and deposit details.

• Carry ID proof: Bring valid identification such as your Aadhaar or PAN card.

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

• Submit the FD receipt: Hand over the fixed deposit receipt issued at the time of booking.

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

• Receive credited proceeds: The revised amount is credited to your linked savings account.

Exceptions and No-Penalty Conditions

Certain scenarios are exempt from ICICI Bank’s standard tenure-based premature withdrawal penalty.

• Short Holding Periods: No interest at all is paid on domestic or NRO deposits withdrawn within 7 days of booking, and no interest is paid on NRE deposits withdrawn within 1 year.

• FD-Linked Overdrafts: FD-linked overdrafts are governed by their applicable terms and preserve your base FD interest rates without triggering premature withdrawal penalties. ICICI Bank explicitly excludes FD-linked overdraft facilities from premature withdrawal penalties, allowing you to access liquidity up to 90% of your deposit value.

• Government, Regulatory, and Deceased Settlement Cases: Specifically, regarding non-callable deposits, the bank has exempted the typical closure restriction for deposits that are closed due to government or regulatory orders, bankruptcy, court orders and deceased settlement claims.

Non-Withdrawable FDs vs Withdrawable FDs at ICICI Bank

Withdrawable FDs can normally be closed before maturity subject to ICICI Bank's applicable terms and penalty for premature withdrawal. Non-withdrawable FDs are normally not allowed to be closed before maturity unless the depositor requests it. In certain extreme circumstances, closure may be permitted subject to the applicable terms and conditions of the deposit.