NRE FDs, just like all other FDs, can be broken immediately upon giving the proper instruction to the bank. A premature withdrawal penalty of 1% on the interest rate applicable for the duration you are breaking the FD will be applicable. For example, you made a 5-year FD at 7% and on the same date, you see that the bank offers a 5% rate for a 2-3-year FD. If you break the FD after 3 years, your effective interest rate will be 5-1% = 4%