From October 1, banks will have to follow new RBI rules for pricing and disclosing bulk fixed deposit rates. Here’s what changes for FD investors and why renewal timing matters.
Bulk deposit rates: Banks must disclose rates by 10:10 am
The RBI states that interest rates paid on deposits, particularly bulk deposits, must fully adhere to the interest rate schedule that is already published on the bank’s website.
On each working day, however, interest rates applicable to bulk deposits must be posted on the bank’s website at 10:00 am, with a grace period of 10 minutes, and no later than 10:10 am.
According to the RBI, banks typically disclose interest rates on deposits under Rs 3 crore ahead of the start of the business day in accordance with the stipulation in the current directions, so it has been decided not to specify a specific time for this disclosure.
RBI on deposit rates: No discrimination among customers, branches
The RBI has clarified in a notification dated July 30, 2026, that interest rates imposed on deposits, including bulk deposits, shall remain the same throughout all branches and for all customers, and there shall be no disparity in the context of interest paid on the deposits between one deposit and another deposit of similar amount, accepted on the same date, at any of its offices.
The Amendment Directions (ADs) require that banks make interest rates available on their websites, since these are the most widely used communication channels. However, banks may disclose interest rates to specific customers through alternative means of communication.
RBI allows banks to price bulk deposits based on LCR norms
The RBI has clarified that a bank may offer differential interest rates on bulk deposits by taking into account the differential run-off rate that applies to deposits or unsecured wholesale funding under the Liquidity Coverage Ratio (LCR) framework. The applicable run-off rates under the LCR framework apply to both domestic term deposits and non-resident Rupee deposits.
“It would be appropriate for the banks to do the necessary categorisation as per their need, based on the differential run-off rates applicable to deposits/ unsecured wholesale funding from various retail and non-retail customers, basis which they compute and submit their LCR Returns to RBI,” RBI said.
FD rates from October 1: Why renewal timing now matters?
Existing FDs are untouched. The contracted rate, the premature withdrawal terms and the senior citizen premium continue as agreed.
“The change bites at the point of booking or renewal. Any FD renewed from 1 October should reflect that day’s published rate, not a number negotiated at the branch. I don’t see a case for a wholesale rethink of maturity strategy, because rates will still move with the policy cycle,” said Vivek Iyer, partner and financial services risk leader at Grant Thornton Bharat.
But large depositors should stagger their renewals and treat the liquidity terms of each deposit as something that affects the price they get.
FD investors: Don’t chase rates without checking these factors
The headline rate is only one part of the decision. The same bank can now legitimately pay different rates on deposits of the same size if their tenure or withdrawal flexibility differs. So investors should weigh the rate premium against the lock-in.
A non-callable FD pays more because you give up the right to exit early, and that only makes sense for money you are certain you won’t need.
Look at the premature withdrawal penalty, the effective annual yield, and the payout frequency. Above all, look at the bank’s financial strength. A higher rate from a weaker bank is not the same product.
FD rates: Why you should check the bank website before booking
Treat the bank’s website as the reference rate, not the relationship manager’s verbal quote. Check the published rate on the day you book, keep a screenshot, and make sure the FD receipt matches it.
Choose between callable and non-callable based on your liquidity needs, not just the rate gap. Give auto-renewal instructions deliberately rather than by default.
Spread large sums across banks, keeping the Rs 5 lakh deposit insurance cover in mind. The regulator has made pricing transparent; investors now need to actually use that transparency.
Key takeaway
From October 1, 2026, revised RBI rules bring more transparency and consistency to how banks price large fixed deposits, those of Rs.3 crore and above. Most individual savers are well below this threshold and will see no change to how their deposits work. For large depositors, the shift is really about visibility.
Some pricing flexibility remains, tied to how that money is used by the bank. On the whole, this adds a layer of transparency that should benefit large depositors going forward.
Existing FDs remain untouched. This includes their rate, maturity date and premature-withdrawal terms, which shall continue exactly as agreed, and any penalty still follows the bank’s existing policy.
The change applies from the point of renewal or a fresh booking. When an FD matures and is renewed, it typically picks up the rate the bank is offering for that tenure on that day, as has always been the case.
“What’s new for large depositors is that this rate is now published daily, so there’s less guesswork before renewing or booking. At maturity, it’s worth weighing the prevailing rate, the tenure that suits your needs, and how soon you might need the money before deciding to reinvest,” said Adhil Shetty, CEO, BankBazaar.
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