As the process of creating a fixed deposit is made simpler through the online route likewise premature breaking of the fixed deposit is also possible online. However, at present the facility is provided by only some banks. Thus, for the deposits with other banks, customers need to take the offline route i.e. visit the bank with the FD receipt or deposit certificate and complete the necessary documentation process for the processing of the request for early breaking of the term deposit with the bank.
Otherwise, through the online route for premature FD breaking i.e. indeed available with several new-age private sector banks the process is much simpler with turn around time of just 1 working day. For applying for early breaking of the fixed deposit scheme, all a customer needs to do is log-in into one's account using internet banking credentials and click on the Service Request link. The link would provide multiple options pertaining to different queries, among which you can select the one related to term deposits or fixed deposits. Further under this link, you'll see different available options such as know your FD status, request for early withdrawal or breaking of fixed deposit.
On clicking the link, the customer would be asked to specify his FD account number, contact number in addition to e-mail address. After the process is completed from the customer's end, bank upon verification of the details and accounting for the necessary charges and penalty amount would at the most process the request by the next working day. The principal amount plus interest less deductions on account of early withdrawal would then be credited into the customer's account.
So, in case you as a customer are intending to break your existing investment into a fixed deposit scheme prematurely than you can consider the available online route which would save time as well as reduce efforts considerably.Also remember there is a prepayment penalty in case the FD is broken before a select period. Do remember to check the same with your bank.