What is the New Fixed Deposit Rule by RBI

 Fixed Deposits are among the most popular investment tools, especially among traditional investors. This is due to the safe and guaranteed returns they offer to depositors. Government, private banks, and financial institutions have recently revised fixed deposit interest rates. This has made FDs once again one of the most sought-after investments. 


Although FDs have been around for a long time, much like all investment tools, they also evolve on a regular basis. This involves changes in rules and regulations that govern their operations. Such change has occurred recently when the Reserve Bank of India (RBI) made a significant change regarding the interest rate on FDs? This blog will discuss the same in detail. 


If you have a habit of not claiming the interest earned on your fixed deposits, then pay attention as you might end up earning a lower interest rate on your deposit. Yes, you read that right. The SBI, Yes Bank, HDFC Bank or ICICI Bank FD interest rates applicable on your deposit can lower if you fail to claim the interest earned on time. As per the new rule, if the FD amount is left unclaimed by the depositor, then the lower of the contracted rate of interest and the interest rate applicable on the savings account will be applicable to the FD. 


Overdue Fixed Deposit


A fixed deposit is deemed to be overdue when the depositor fails to claim the amount or renew the fixed deposit upon maturity, and the deposited amount sits idle with the bank. This can be a cause for concern for people who leave their FDs unattended after maturity.


A Good News


While the above-mentioned development may have worried you, there is some good news as well to lift your spirits. All Indian banks and non-bank finance companies that offer term deposit solutions have recently revised their fixed deposit interest rates and are now offering higher rates to depositors. 


You can now enjoy 0.50 to 1.50 percent higher Mahindra Finance, Shriram Transport Finance, Canara Bank and Kotak Bank FD interest rates on your deposits. This makes fixed deposits even more lucrative investment options, especially when the dark clouds of recession are looming over the world economy. 


Thus, if you want safe and guaranteed returns, then go for FDs. You can check the latest Bandhan Bank, Bank of India, Bank of Baroda, and Indusind Bank FD interest rates on the ZFunds website.

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