FD Rules Changed: If you also make fixed deposits, then know that the big rules of FD have changed. RBI changed the rules related to FD some time back and these new rules have also become effective. After the decision of RBI to increase the repo rate, many government and non-government banks have also started increasing the interest rates on FD. Therefore, before making FD, definitely read this news. Otherwise you may have to bear the loss.
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Changed rules on maturity of FD
Actually, RBI has made a big change in the rules of Fixed Deposit (FD) that now after the maturity, if you do not claim the amount, then you will get less interest on it. This interest will be equal to the interest received on the savings account. Currently, banks usually give more than 5% interest on FDs with a long tenor of 5 to 10 years. Whereas the interest rates on savings account are around 3 percent to 4 percent.
RBI issued this order According to the information given by RBI, if the fixed deposit matures and the amount is not paid or claimed, then the interest rate on it as per the savings account or the rate of interest fixed on the matured FD, Whichever is less will be given. These new rules will be applicable on deposits in all commercial banks, small finance banks, cooperative banks, local regional banks.
Know what the rules say Understand this in such a way that, suppose you have got an FD with 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 on FD is less than the interest on the savings account of that bank, then you will continue to get the interest on FD. If the interest earned on FD is more than the interest earned on the savings account, then you will get the interest on the savings account after maturity.
What was the Old Testament?
Earlier, when your FD matured and if you did not withdraw or claim it, then the bank used to extend your FD for the same period for which you had made the FD earlier. But now this will not happen. But now if the money is not withdrawn on maturity, then FD interest will not be available on it. So it would be better if you withdraw money immediately after maturity.
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