Wednesday, October 5, 2022

RBI altered the rules such that if money is not withdrawn on the maturity date of a fixed deposit, you would receive less interest.

FD Rules Changed: If you save money in fixed deposits, you’ll have to be a little more careful today. Because the Reserve Bank of India (RBI) has made some adjustments to the FD rules that you should be informed of, or you risk losing your money.

FD maturity rules have been changed.

Actually, the RBI has changed the rules for Fixed Deposits (FDs) so that if you do not claim the money after the maturity date, you would receive less interest. This interest will be the same as the savings account interest. Currently, banks often pay more than 5% interest on FDs with a 5- to 10-year tenor. Savings account interest rates are typically about 3% to 4%.

Read More: Mahindra Recall 600 cars from customers, a major engine fault found! The company will repair for free

This order was issued by the RBI.

If a fixed deposit matures without being paid or claimed, the interest rate would be the same as a savings account or fixed interest on the maturity FD, according to a circular published by the RBI. The rate will be offered, whichever is lowest. All commercial banks, small financing banks, cooperative banks, and local regional banks will be subject to the new laws.

Understand this in such a way that, if you have a 5-year FD that has matured today but you are not withdrawing the money, you will find yourself in one of two scenarios. If the interest on your FD is less than the rate on your bank’s savings account, you will continue to receive the FD interest. If the interest earned on the FD is greater than the interest earned on the savings account, you will get the savings account interest after the FD matures.

This used to be the rule.

Previously, if you did not withdraw or claim your FD when it matured, the bank would extend it for the same term for which you had made the FD. But that is no longer the case. However, if the money is not withdrawn by the maturity date, the FD interest would be forfeited. As a result, it is preferable to withdraw funds as soon as possible following maturity.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img
spot_img

Most Popular

spot_img

Latest

FD Return: According to the annual inflation rate, understand the FD returns of these 5 banks, see how you will get the benefit

Inflation And Actual Return on FD:  If you are thinking of investing your money then this news can be useful for you. It is...

FD Interest Rate: See who is giving more returns on FD in State Bank, BOB and Bandhan Bank, know full details

Bank of Baroda Vs SBI Vs Bandhan Bank FD Interest Rate: Bank Fixed Deposit (FD) account is considered to be the safest investment in...

FD Interest Rate: Money is getting double on getting FD in these banks, did you take advantage?

Higher interest rate on FD: RBI has given a big blow to the people by increasing the repo rate. But many people are also...

After SBI, IndusInd Bank has now upped interest rates as well. You can see here where there is now more benefit for having an...

Bank interest rates have begun to rise as a result of the RBI's repo rate increase. The interest rates on fixed deposits have now...

The RBI has modified the FD rules! otherwise there could be a significant loss.

RBI has modified the regulations governing FDs. After this modification, you might have to pay the loss of interest on the FD if your...

Most Popular

Subscribe

* indicates required