Most people prefer to invest in FD because it is safe. If you are also among such investors then there is good news for you. RBI has issued a new guideline regarding fixed deposits, which you should know about. From January 1, 2025, there will be no penalty on premature withdrawal within 3 months of making FD.

RBI has implemented new rules for Housing Finance Companies (HFC) and Non-Banking Finance Companies (NBFC) keeping in mind the interests of investors. This includes everything from making a nominee to FD premature withdrawal rules. Let’s know about the new rules of RBI.

RBI’s new rule related to FD

According to the new rule of Reserve Bank of India (RBI), you will have the freedom to withdraw money within 3 months of making an FD. You can withdraw the entire amount of small deposits (up to Rs 10,000) within 3 months without any interest. Whereas for large deposits, partial withdrawal of up to 50% of the principal amount or Rs 5 lakh (whichever is less) can be done within three months without interest.

Not only this, in cases of critical illness, the depositor is allowed to withdraw the entire principal amount prematurely without interest, regardless of the deposit term. Also, for more timely updates, now non-bank financial companies (NBFCs) will be required to inform the depositors about the maturity details at least two weeks before the maturity date.

Other changes to be implemented from January 1, 2025

Nominee update: Non-banking financial companies (NBFCs) have been directed to create a proper system to inform about the receipt of the correctly filled nomination form, cancellation or change of nominee. It will be necessary to give this acknowledgement to all customers, whether they have requested it or not.

Withdrawal rules: As per RBI’s directive, individual depositors holding public deposits will be allowed to request premature withdrawal within three months from the date of deposit. Within three months, the depositor can withdraw a maximum of 50% of the principal amount or Rs 5 lakh (whichever is less) without any interest. In this way, he will continue to get interest on the remaining amount.

In case of critical illness: In case of critical illness, depositors have a right to request withdrawal of their entire original deposit amount within three months from the date of deposit. Note that this rule also applies to existing deposit contracts that previously did not allow the right of premature withdrawal within the first three months.

Deposit maturity information: Earlier, NBFCs were required to inform depositors about the maturity date of their deposits at least two months in advance. But now for more timely updates, NBFCs will have to inform the depositors about the maturity date at least 14 days before the maturity date.

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As per clarification from India Post, 5-year post office FD opened on or after November 10, 2023 cannot be closed earlier than 4 years from the date of opening of the FD. That means, withdrawal of money from 5 year FD can be done only after 4 years. Whereas, for FDs opened till November 9, 2023, the previous rules for premature withdrawal are applicable.

New rules for premature withdrawal from post office FD 

The government has amended the premature withdrawal rules for post office FDs of different tenures. The new rules are as follows-

1. Any post office FD cannot be withdrawn before 6 months from the date of deposit. At the same time, 5 year post office FD cannot be withdrawn before completion of 4 years.
2. If a 1-year, 2-year or 3-year Post Office FD is withdrawn after 6 months but before one year from the date of deposit, the deposit will earn only Post Office Savings Account interest for that period which is significantly less. will be.
3. If a 2-year or 3-year Post Office FD is prematurely withdrawn after one year, a penalty of 2% will be deducted from the interest rate applicable on 1-year or 2-year Post Office FD.

Old rules for premature withdrawal from post office FD-

1. Old rules for premature withdrawal from post office FDs opened on or before November 9:
2. Money cannot be withdrawn from any post office FD before the expiry of 6 months from the date of deposit.
3. If 1 year, 2 years, 3 years or 5 years post office FD is withdrawn after 6 months but before one year from the date of deposit, then post office savings account interest will be given.
4. If a 2-year, 3-year or 5-year Post Office FD is broken after 1 year, a penalty of 2% will be deducted from the interest rate applicable on 1-year, 2-year or 3-year Post Office FD.

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What is the new rule?

According to the report of Economic Times, under the new rule, if any SCSS investor withdraws money before the completion of one year period of account opening, then one percent will be deducted from the deposit. Earlier, if an SCSS investor withdrew money in the first year of investment, no interest was paid on the deposit. After that the entire remaining amount was given to the account holder.

What is SCSS?

Senior Citizen Savings Scheme is a government investment scheme, which comes under the Small Savings Scheme of the Post Office. Any person who has completed 60 years of age can invest in this scheme. At the same time, a person taking VRS and superannuation under 55 years and 60 years can also open SCSS account. At the same time, a person above 50 years of age retired from Defense Services can also open an account in SCSS.

This scheme can be started with a minimum investment of Rs 1000. A maximum investment of Rs 30 lakh can be made. In this, the account can be opened for five years. After this it can be extended for three years. The special thing about this scheme is that by investing in it, one gets the benefit of Section 80C of Income Tax. Through this you can get a discount of up to Rs 1.5 lakh.

Interest on SCSS

8.2 percent interest is being given by the government on SCSS. This is for the period October-December. The new interest rate of SCSS is declared every quarter by the government.

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Sukanya Samriddhi Yojana is a scheme to secure the future of daughters, which is run by the Government of India. In this scheme, an account is opened in the name of girls up to the age of 10 years. Deposits have to be made in the scheme for 15 years. But this scheme matures after 21 years. From Rs 250 to Rs 15,0000 can be deposited annually in Sukanya Samriddhi Yojana. The benefit of compounding interest is available in this scheme and the interest is calculated on an annual basis.

At present, interest is being received on this scheme at the rate of 8 percent. If investment is made in this scheme in time, then a lot of money can be added till the daughter grows up. But 21 years is too much time. Suppose a person needs money before 21 years after starting the scheme, then what are the rules for premature withdrawal? Know about it here.

Withdrawal Rules

Withdrawal facility is available from the account after the daughter’s 10th standard or after she turns 18. In this case, you can withdraw up to 50% of the total balance of the previous financial year. If you are withdrawing the amount for the higher studies of the daughter, then you will have to give proof for higher studies. Apart from this, money can be received in lump sum or in installments. You will get money only once in a year and can take money in installments for a maximum of five years.

Premature closure can be done in these situations

1. If the girl dies before the maturity of her scheme, then her parents get the money invested in this scheme along with interest. However, for this the death certificate of the girl has to be submitted.

2. If the girl who has Sukanya Samriddhi account in her name has a serious illness and needs money for treatment, you can close the account prematurely. But for this you may have to provide proof related to the illness and treatment of the daughter. But this facility is available after 5 years.

3. If the girl child in whose name the Sukanya Samriddhi account has been opened, her parents or legal guardians die before the account matures, then the account can be closed midway.

4. Your account is considered closed even if you give up your Indian citizenship. In this case, all the money is returned by adding interest. But if you have settled in some other country, but have not given up the citizenship of India, then this account can be continued till maturity.

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People above 60 years of age can invest in this scheme and take advantage of it. There is age relaxation for the employees of the security forces for investment in this. Under this scheme, a maximum of Rs 30 lakh can be deposited. It is a safe investment option.

Investors get the facility of closing the SCSS account or withdrawing the amount before maturity. For this the investor has to pay a penalty. Under this scheme, from April 1, 2023 to June 30, 2023, up to 8.2 percent interest is being given to investors on deposits. The government revises the interest rates every quarter. Under the Senior Citizen Savings Scheme, the interest rate is paid on a quarterly basis, which is taxable.

When can SCSS account be closed?

Senior Citizen Saving Scheme is for five years. However, on maturity it can be extended for another 3 years. The account can be closed at any time by submitting Form No. 2. There are some conditions for this as well.

• If you want to close the Senior Citizen Savings Scheme account before the completion of one year, then the interest on the deposited amount will not be available. The remaining amount will be returned to the investor.
• In case of closure after one year and before the second year, an amount equal to one and a half (1.5) percent of the deposit amount will be withheld. After this, the remaining amount will be paid to the investors.
• On closure of this account after two years or so, 1 percent of the deposit amount will be withdrawn. The remaining amount will be returned to the investor.

The investment limit has been fixed under the Senior Citizen Savings Scheme. Under this, the minimum 1000 and the maximum deposit amount is 30 lakh rupees. The account matures for the next 5 years from the date of account opening.

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In such a case, when money is required before maturity, the bank or financial institution gives the facility to the customer to withdraw the deposited amount by levying a nominal penalty. Some banks are also providing loan facility against fixed deposit amount. Along with these features, the attractive interest rate has encouraged investors to invest in FDs.

In fixed deposits, banks offer different interest rates to general citizens and senior citizens. Here is a list of 5 banks offering the highest interest rate on 2-year FDs, where you can invest.

Bandhan Bank

Bandhan Bank offers interest rate between 3% to 8% to common citizens for tenures ranging from 7 days to 10 years. The highest interest rate of 8% is offered for a tenure of 1 year 7 months and 20 days.

IDFC First Bank

IDFC First Bank is offering interest rates ranging from 3.50% to 7.75% to the general public for tenures ranging from 7 days to 10 years. The bank is offering 7.75% interest rate on 18 months 1 day to 3 years tenure, while 367 days to less than 18 months (367 days to 548 days) 7.25% interest rate is offered on FD investment.

IndusInd Bank

IndusInd Bank offers interest rates ranging from 3.50% to 7.75% to the general public for tenures ranging from 7 days to 10 years. The bank offers the highest interest rate of 7.75% on tenure of 1 year 6 months to 2 years 9 months.

Yes bank

Yes Bank is offering interest rates ranging from 3.25% to 7.50% to the general public for tenures ranging from 7 days to 10 years. The bank has announced to give the highest interest rate of 7.50% for a period of 15 months to less than 35 months.

RBL Bank

RBL Bank has announced to give interest rate between 3.50% to 7.80% to the general public for a period ranging from 7 days to 10 years. RBL Bank offers the highest interest rate of 7.80% on FD investments with a tenure of 453 to 459 days (15 months).

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Due to the high risk involved in investing directly in the stock market, people show more confidence in investing through Mutual Funds . In such a situation, if you are planning to withdraw money from mutual funds before time or maturity, then this news is for you.

Money can be withdrawn from mutual funds before time (Withdrawal money from mutual fund before lock-in period ended) , but this does not apply to all types of mutual funds. There are also some mutual funds where you may have to pay a fine or penalty for withdrawing money from time or lock-in period.

From which mutual funds can I withdraw money?

Most mutual fund schemes are open ended. Investment can be withdrawn at any time from open ended mutual fund schemes. Withdrawals can be made in parts instead of the entire investment. On this, according to your scheme, you just have to pay the exit load, which is generally very less.

On the other hand, there are Equity Linked Savings Scheme (ELSS) mutual fund schemes. You also get tax exemption on these schemes under Section-80C of Income Tax. That’s why there is a ‘lock in period’ of three years on these schemes. In such a situation, whenever money is withdrawn from these schemes before time, then penalty has to be paid. It can be between 5 to 10 percent.

How to withdraw money from mutual fund?

There are many ways to withdraw money from mutual funds. Whenever you plan to withdraw money from an open ended mutual fund scheme, usually the minimum units that can be redeemed are reflected in your scheme document.

Investments in mutual funds can be redeemed at the Investor Service Centers of the scheme offering companies, at the offices of asset management companies, through demat accounts or through online platforms.

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Over 15 lakhs invested in SBI Sarvottam FD

SBI has launched SBI Sarvottam Fixed Deposit scheme for retail and wholesale investors and its deposit tenure is only 1 year and 2 years. The minimum amount of investment under this scheme is Rs 15 lakh in the retail sector. At the same time, renewal facility is not provided in SBI Sarvottam FD and after maturity the amount will be deposited directly into the investor’s account.

Higher rate of interest to these investors including senior citizens

Senior citizens, employees, employees for investment in SBI Best FD will be able to get additional rate of interest to senior citizens as compared to general public.

These people will not be able to invest in SBI Sarvottam FD

There is a change in eligibility for investors in SBI Sarvottam FD. Minors and NRI customers are not eligible to invest in this scheme. Along with this, NRI senior citizens, NRI employees are also not eligible for investment.

SBI best FD interest rate 7.90 percent

Under SBI best FD, the bank offers 30 bps on the card rate for a tenure of 1 year and 40 bps on the card rate for a tenure of 2 years. According to the bank, on investing an amount of more than Rs 15 lakh and less than Rs 2 crore for 1 year, ordinary citizens will get 7.10 percent interest rate, while senior citizens will be given an interest rate of 7.55 percent. At the same time, for a period of 2 years, 7.40 percent interest will be given to general customers and 7.90 percent interest to senior citizens.

Maximum 7.5 percent interest on SBI’s regular FD.

Looking at the interest rates on other regular FDs of SBI, for a period ranging from 7 days to 10 years, it gives an interest rate of 3 percent to 7 percent to general citizens and 3.5 percent to senior citizens. Gives interest rate between percent to 7.5 percent. These interest rates are applicable from 15 February 2023.

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Various schemes are run in the post office from ordinary citizens to senior citizens. In such a situation, all the schemes are such that they mature in 5 years. If you want to withdraw money before their maturity, then you will have to bear some loss in the form of penalty. Know about these schemes here.

Post Office MIS

In Post Office MIS i.e. Monthly Income Scheme, you have to deposit a lump sum amount for 5 years. Through this, you can get a fixed amount every month for 5 years as income. After 5 years you get your money back. But if you need money before 5 years then you have to pay penalty. If you withdraw money between one year to three years, then 2% of the deposit amount will be deducted and returned. On the other hand, if the account is more than three years old but you want to withdraw money before 5 years, then after deducting 1% from the deposited amount, the deposit amount is returned to you.

Senior Citizen Saving Scheme

In this post office scheme also you have to invest for 5 years. The deposit matures after 5 years from the date of opening the account. But if you have to withdraw money from it before five years, then penalty has to be paid. In this, 1.5% of the deposit amount is deducted for withdrawing money before completion of 2 years and 1% of the deposit amount is deducted as penalty for withdrawing money after 2 years.

Post Office Recurring Deposit Account

The recurring deposit account of the post office is also for 5 years. Investors of Recurring Deposit Account get the facility of withdrawal after 3 years. On premature withdrawal, you will get the benefit of the rate of interest as per the savings account only.

Kisan Vikas Patra

This scheme, which doubles the investment in 124 months, has a lock-in period of 30 months. In this scheme, if you withdraw money before 1 year, then you will not get any interest on it. According to the scheme, the investor will also have to pay a penalty for withdrawing money. Interest will be earned on withdrawing money between 1 year to 2.5 years, but the amount will be reduced. After 2.5 years, if the KVP is broken and the money is withdrawn, then no penalty will be imposed and the return will be given according to the interest rate prevailing at that time.

Public Provident Fund

This scheme is of 15 years, but the lock in period is of 5 years. But if after 5 years you can withdraw money with certain conditions and close the account. But 1% interest is deducted from the date of account opening till the date of closure.

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