Should you break an FD or take a loan against it when you urgently need money? Experts explain

Breaking an FD prematurely leads to interest loss due to penalties.

A loan against FD typically offers lower interest rates than personal loans.

Tata Capital's Vivek Chopra recommends a bridge personal loan for short-term urgent needs instead of breaking an FD.

DBS Bank India's Alok Kashyap notes that loan against FD allows deposit to continue earning interest while providing liquidity.

The choice depends on urgency, borrowing costs, repayment ability, and whether the need is short-term or long-term.