FD Rules Changed: If you also do fixed deposits, then know that RBI has changed the big rules of FD. 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 suffer loss.

Changed rules on maturity of FD

Actually, RBI has made a big change in the rules of Fixed Deposit (FD) that now after the completion of 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 offer more than 5% interest on FDs with a longer tenure 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 5 years maturity, which has matured today, but you are not withdrawing this money, then there will be two situations on this. If the interest being received on FD is less than the interest being received on the savings account of that bank, then you will continue to get the interest with 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 it 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 But now if the money is not withdrawn on maturity, then FD interest will not be available on it.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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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.

The post Fixed Deposit Rules: Big news! RBI changed big rules of FD, read this news soon to avoid loss first appeared on Rightsofemployees.com.