If you too have got a fixed deposit (FD) in the bank or are thinking of getting it, then there is important news for you. The Reserve Bank of India (RBI) has changed the important rules related to FD on Friday. RBI has changed the rules of interest on the unclaimed amounts after the expiry of the term of Fixed Deposit in banks. According to the new rule, if the maturity date is reached, even if its amount is not claimed, then the interest on it will be less.
RBI said in the circular that it has been decided that if the fixed deposit matures (FD maturity) and the amount is not paid and it remains unclaimed in the bank, then the interest rate on it will be according to the savings account. or the contracted rate of interest, whichever is less, shall be payable on the maturity of the Fixed Deposit.
New rule applicable to all banks
The new rule will be applicable to deposits in all commercial banks, small finance banks, cooperative banks, local regional banks. A fixed deposit is a deposit that is kept in banks for a fixed period of time at a fixed interest. It also includes deposits like recurring, cumulative, reinvestment deposits and cash certificates.
FD is preferred for investment
Let us tell you that most people prefer FD (Fixed Deposit) to invest money in a better way. It is considered to be the best option for investment. FD is a good option for investors who want to avoid risk. There are many good options for investors to deposit money and get returns. High interest rates make it very attractive to invest in FDs. In this, it is easy to get safe, assured returns, ease of investment and payback of the amount invested. This FD is not affected by market movements.