It depends on the bank to bank, most of the bank doesn't allow you to break your FCNR fixed deposit if it's done for more than 3 years, but you can do premature withdrawal if it's done for less than 3 years. Most of the bank including ICICI, HDFC and Kotak Mahindra doesn't pay any interest if you break your FCNR term deposit within a year. If you break your FCNR FD after year, you will likely get less interest rate than promised, mostly what is equivalent to the period money remained in the Bank. So, make sure you check with your relationship manager about a premature withdrawal penalty before opening an FCNR fixed deposit. Read more »