Premature withdrawal rules for Bajaj Finance FD: What you need to know

Unexpected expenses can throw even the most carefully planned budgets off track. Medical emergencies, job losses, or urgent payments might make you consider breaking your FD. The good news? If your FD is with Bajaj Finance, you have multiple options that protect your financial goals while giving you the liquidity you need.

What Does 'Premature Withdrawal' Mean?

When you break your fixed deposit before it matures, it’s called a premature withdrawal. While most FDs penalise you for this, Bajaj Finance gives you flexibility—even during financial crunches. From allowing partial withdrawals in critical scenarios to providing faster resolutions, you’re never left stranded.

Tip: Not sure how long you should lock your money in? Use our flexible tenure options ranging from 12 to 60 months to align with your goals. Check fd interest rates!

Bajaj Finance FD Premature Withdrawal Rules: What You Need to Know

Here's how premature withdrawals work at Bajaj Finance:

If You Withdraw Within 3 Months

• Not usually allowed. But there are exceptions:
  • In case of the depositor's death
  • Emergencies like critical illness or natural calamities (up to ₹5 lakh or 50% of the FD)
  • Full withdrawal for critical illness (as per IRDAI norms)
  • Tiny deposits under ₹10,000

If You Withdraw Between 3–6 Months

• Allowed, but no interest will be paid

If You Withdraw After 6 Months

• Interest is paid at 2% lower than the rate applicable for the held tenure
• If no such rate exists, interest is 3% lower than the lowest offered rate

Want to avoid penalties in the future? Choose from our laddering options and invest in multiple FDs with different maturity dates. That way, you won’t have to break the full FD in an emergency. Open FD.

How Premature Withdrawal Affects Your Returns

It is always helpful to know the trade-offs:

• Zero interest if withdrawn before 6 months
• Lower returns post 6 months due to rate penalties
• Loss of compounding for cumulative FDs
• No tax benefits if you break a tax-saving FD before 5 years

But there’s a better way to access liquidity without losing your FD benefits. 

Instead of Breaking Your FD, Consider This…

Take a Loan Against Your FD

• Get a loan of up to 75% of your FD value
• Pay a lower interest rate compared to personal loans or credit cards
• Your FD keeps earning while you manage your urgent need

Create an Emergency FD Strategy

• Split your investment into multiple FDs with different tenures
• Use auto-renewal and payouts to ensure liquidity at key intervals

Bonus: Bajaj Finance offers special interest rates for senior citizens and online bookings. Check FD Rates and get started.

How to Raise a Premature Withdrawal Request Online

If you absolutely must break your FD, Bajaj Finance makes it simple:

1. Log into My Account
2. Go to ‘Raise a Request’ > ‘Service’ > ‘Relations’
3. Choose ‘Fixed Deposit’ and click ‘Premature Withdrawal’
4. Review details and submit your request

A Bajaj Finance representative will connect with you within 48 working hours.

The Final Word

Breaking an FD shouldn’t break your long-term goals. With Bajaj Finance, you get flexibility during emergencies, plus smart alternatives like loans against FDs. Even better, you can structure your investments to give you both growth and liquidity.

Whether you're a first-time investor or someone planning retirement, Bajaj Finance FDS offer one of the safest, highest-yielding, and most flexible options in the market today.

Ready to grow your savings while staying financially secure? Open FD with Bajaj Finance in just a few clicks.

Note to readers: This article is part of Mint’s paid consumer connect Initiative. Mint assumes no editorial involvement or responsibility for errors, omissions, or content accuracy.

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