RBI made major changes in FD rules

Many government and non-government banks have also raised interest rates on FDs following the RBI’s decision to raise repo rates. So be sure to read this news before FD. Otherwise you may incur losses.

In fact, the RBI has made a big change in the Fixed Deposit (FD) rules that now that you have matured, if you do not claim the amount, you will get less interest on it. This interest will be 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. While the interest rate on savings account is around 3% to 4%.

Changed rules regarding maturity of FD

In fact, the RBI has made a big change in the Fixed Deposit (FD) rules that now that you have matured, if you do not claim the amount, you will get less interest on it. This interest will be 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. While the interest rate on savings account is around 3% to 4%.

The RBI issued the order

According to the information provided by the RBI, if the fixed deposit matures and the amount is not paid or claimed, the interest rate on it according to the savings account or the interest rate fixed on the matured FD, whichever is less. . These new rules will apply to deposits in all commercial banks, small finance banks, co-operative banks, local regional banks.

Learn what the rules say

Think of it this way, suppose you have a FD with a maturity of 5 years, which has matured today, but you are not withdrawing this money, then there will be two positions on this. If the interest on FD is less than the interest on the bank’s savings account, you will continue to receive interest on FD. If the interest earned on FD is higher than the interest earned on savings account, you will get interest on savings account after maturity.

What was the Old Testament?

Previously, when your FD matured and you did not withdraw or claim it, the bank would extend your FD for the same period for which you had previously made the FD. But that will not happen now. But now if the money is not withdrawn on maturity, it will not get FD interest. So it is better that you withdraw money immediately after maturity.