Big Update! RBI changes rules regarding Fixed deposits.

The decision by RBI –

The rules regarding the FD are changed by RBI. If you also do the fixed deposits you must be aware of these changed rules.RBI changed the rules related to FD some time ago and these new rules have also become effective. After hearing the news of RBI increasing its repo rate many government and non-government banks have also started increasing the interest rates on FD. Thus, it is necessary to know these rules, or else you may suffer heavy losses.

Change of Rules of FD –
The new rule regarding the Fixed Deposit (FD) states 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 accounts are around 3 percent to 4 percent.

Application of new rules – RBI says that the new rules will apply to all commercial banks, small finance banks, cooperative banks, and local regional banks. According to them 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.

What were the old rules –
The old testament states that when the s 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. If the money is not withdrawn on maturity, then FD interest will not be available on it. According to the new rule, it is better to withdraw the money immediately after maturity.

Understand the rules –
The new rules made by RBI are very important. If you have got an FD with 5 years maturity and it has matured today but you are not withdrawing the money then there arise two situations in this case. If the interest 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.

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