RBI changed fixed deposits rule: Money is not withdrawn on maturity, then you will get less interest
New Delhi: FD Rules Changed: If you also put money in fixed deposits, then there is news of work for you. Now you have to act a little wisely before getting an FD. Actually, the Reserve Bank of India (RBI) has changed the rules of FD. If you do not know this rule then 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 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
In a circular issued by the RBI, it has been said that 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 fixed interest on the maturing FD. The rate, whichever is lower, 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 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.
This was the old rule
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 But now if the money is not withdrawn on maturity, then FD interest will not be available on it.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.