FD Rules Changed Fixed Deposit Maturity If you do not withdraw money, you will get less interest, RBI: If you also invest money in Fixed Deposit for savings, then now you have to work a little wisely. Because the Reserve Bank of India (RBI) has made some changes in the rules of FD, which you should be aware of, otherwise you may have to suffer losses.
Changed rules on maturity
Actually, RBI has made a big change in the rules of Fixed Deposit (FD) that now after 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 longer tenures of 5 to 10 years. Whereas the interest rate on savings account is around 3 per cent to 4 per cent.
RBI issued this order
In the circular issued by RBI, it has been said that if the Fixed Deposit Maturity (Fixed Deposit Maturity) and the amount is not paid or claimed, then the interest rate on it according to the Savings Account. Or Fixed Interest on Matured FD. The rate, whichever is lower, will be given. These new rules will be applicable to deposits in all commercial banks, small finance banks, co-operative banks, local regional banks.
Think of it 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 received on the savings account of that bank, then you will continue to get interest on FD. If the interest earned on FD is more than the interest earned on the savings account, then you will get interest on the savings account after maturity.
It 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 made the FD earlier. But now it will not happen. But now if the money is not withdrawn on maturity (FD Rules Changed), then FD interest will not be available on it. So it is better that you withdraw money immediately after maturity.
Fixed Deposit Changed Rules
The Reserve Bank of India (RBI) has changed the rules for fixed deposits. According to the new rule, if the customer has not claimed the FD even after maturity, then he will have to suffer loss in the form of interest in savings. RBI said customers can earn interest even after the Fixed Deposit (TD) matures and the proceeds are not paid.
“It has been decided that in case a Fixed Deposit (TD) matures and the proceeds are not paid, (FD Rules Changed) the interest rate applicable to the Savings Account on the unclaimed amount with the Bank or the maturity TD The stipulated rate of interest, as the case may be, will be applicable. less,” RBI said in a statement.
As per circular
According to the circular, if an FD matures and it is not claimed or its payment is not made, then the interest rate on it according to the savings account or on the mature FD. The lower the contracted interest, there will be available. RBI said in its circular that the new rule will be applicable to all types of banks – commercial banks, small finance banks, co-operative banks, local regional banks.
Fixed Deposit is a deposit which is kept in banks for a fixed period of time at a fixed interest. It also includes deposits such as recurring, cumulative, reinvestment deposits and cash certificates. FD can also be done at the post office. FD investment in loans can be availed, however, this facility is not available on Tax Saving FDs.
