HDFC bank also allows you to prematurely withdraw the NRE fixed deposit, but if the NRE FDs are booked on or after 1st May 2003 will qualify for an interest-only if they have run for a minimum period of 12 months. The penalty rates are 1% for NRE FD of less than 5 Crore if its original duration is less than 5 years or more than 5 years, but for NRE FD of value greater than 5 Crore the penalty interest rate is 1% if the amount is less than 50 million INR and 1.5% if more than 50 million INR.įor example, if you open an NRE fixed deposit of 50 lacs for 3 years and closed it after completion of 2.5 years then you would get the interest applicable for 2 years deposit at the time of booking the original fixed deposit.īreaking the HDFC bank NRE FD before Maturity

So don't break your NRE fixed deposit before 12 months. When you break the NRE FD before maturity then interest is calculated only for the duration deposit remained with the bank and the rate is also subject to penalty and duration.Īnother important thing to remember is that the minimum duration of the NRE fixed deposit is 1 year, which means if you close the deposit before completing 1 year then no interest will be paid. In this article, we will learn and analyze the process and penalty of four major Indian banks regarding breaking the NRE fixed deposit before maturity.įirst of all, the ICICI bank does allow you to break the NRE fixed deposits. SBI, Union Bank, or Dena bank has different rules and penalty regarding the premature withdrawal of NRE FDs. Similarly, public sector banks that offer NRE fixed deposit e.g. ICICI bank has different penalty than HDFC or Kotak Bank.

Yes, you can close the NRE fixed deposit before it gets matured but interest will be calculated at the rate applicable for the period the deposit has actually remained with the bank and you might need to pay the penalty as well, which varies from bank to bank e.g. One of the common questions amount NRI investor putting their money on NRE fixed deposit is whether they can close the NRE fixed deposit before maturity or not? and if breaking the NRE FD is allowed then what is the penalty? This is a very good question and every NRI should ask this to himself or anyone suggesting he open an NRE fixed deposit account.

Fixed deposit hdfc nri