If you also put money in fixed deposits, then you must know this news. RBI has made changes in the rules related to FD. The new rules have also become effective. After this many government and non-government banks have also increased the interest rates on FDs. So if you are also going to get FD, then first act a little wisely. If you do not know these rules then you may have to suffer loss.
Changed rules on maturity of FD
Sometime back, 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 give 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 according to the savings account or the rate of interest fixed on the matured FD, Whichever is less will be given. These new rules have come into force on deposits in all commercial banks, small finance banks, cooperative banks, local regional banks.
Understand the rules here
Understand it with an example. 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 received on FD is less than the interest on the savings account of that bank, then you will continue to get the interest on 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.
Know what was the Old Testament?
Now let’s talk about 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 this 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 But now if the money is not withdrawn on maturity, then FD interest will not be available on it.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.