FD Rules Changed: If you also make fixed deposits, then know that RBI has changed the major rules of FD. RBI had changed the rules related to FD some time ago and these new rules have also become effective. After the RBI’s decision to increase the repo rate, many government and non-government banks have also started increasing interest rates on FDs. That’s why read this news before getting FD done. Otherwise you may have to bear the loss.
Rules changed on maturity of FD
Actually, RBI has made a big change in the rules of Fixed Deposit (FD) that now if you do not claim the amount after completion of maturity, then you will get less interest on it. This interest will be equal to the interest received on the savings account. At present, banks usually give more than 5 per cent interest on FDs with long tenures of 5 to 10 years. While the interest rates on savings account are around 3% to 4%.
RBI issued this order
As per the information given by RBI, if the fixed deposit matures and the amount is not called for, then it will be given the rate of interest as per the savings account or the interest rate prescribed on matured FDs, whichever is less. These new rules will apply to deposits in all commercial banks, small finance banks, cooperative banks, local regional banks.
Know what the rules say
Think of it like this, suppose you have made an FD with a maturity of 5 years, which has matured today, but you are not withdrawing this money, then there will be two situations on this. If the interest received on FD is less than the interest received on the savings account of that bank, then you will continue to get interest along with the FD. If the interest received on FD is more than the interest received on savings account, then after maturity you will get interest on savings account.
What was the Old Testament?
Earlier, when your FD matured and if you did not withdraw or claim it, the bank would extend your FD for the same period for which you had earlier FD. But now this will not happen. But now if you do not withdraw money on maturity, then FD interest will not be available on it. Therefore, it would be better if you withdraw the money immediately after maturity.
