Скачать или смотреть Breaking your FD

If you have FDs locked in at a very low rate for a long period, it may be a worthwhile exercise to break them despite the penalty and reinvest using the current higher interest rate.

Here also you need to be cautious and not break all your FDs at one go. If you have only one big older FD, break that and follow the concept of FD Laddering.

However, you should consider breaking your FD only when it is not close to its maturity and there is substantial time left for the deposit. You can do a calculation with the lower interest rate and penalty on premature withdrawal to find out the net gain if you break and reinvest an FD at a higher rate now.

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