New Fixed Deposit Rules..! Watch Out FD Holders..!

Sowmiya Sriram
New Fixed Deposit Rules..! watch Out FD Holders..!


 If you have a fixed deposit, this will be the message for you. RBI has changed the rules regarding FD. New rules have come into force. Over the past few days, many government and non-government banks have been raising interest rates on FDs. Therefore, before putting FD, think and act wisely. If you do not know these rules, you will data-face loss.

Change in the rules regarding FD maturity:

The Reserve bank has made a major change in the rules of fixed deposit (FD). Now the amount is matured and if you do not claim the amount, you will get less interest on it. This interest is equal to the interest earned on the savings account. Currently, banks typically charge more than 5% interest on long-term FDs of 5 to 10 years. Whereas the interest rate on a savings account can range from 3 percent to 4 percent.

According to the information provided by the Reserve bank, if the fixed deposit matures and the amount is not paid or claimed, the interest rate will be paid whichever is lower, either according to the savings account or the interest rate fixed for the maturing FD. These new rules apply to deposits in all commercial banks, microfinance banks, cooperative banks, and local regional banks. Suppose you put in an FD with a maturity of 5 years. It becomes mature today and if you do not pick it up, it will have two consequences.


If the interest earned on the FD is less than the interest on that bank savings account, you will continue to receive interest on the FD. If the interest on FD is higher than the interest on the savings account, you will receive the interest on the savings account after maturity.


What is the old system?

Previously, if your FD matured and you did not pick it up or claim it, the bank would extend your FD for the same period as you did before. But that will not happen now. But now if the money is not taken at maturity, it will not get interest for FD. So it is better to take the money immediately after maturity.

For more interesting updates click and follow Indiaherald WhatsApp channel

Find Out More:

New rules for Fixed deposit

Related Articles: