Withdraw the FD after the maturity of the Fixed Deposit / TermDeposit as there is no use of leaving it in the bank now. Actually, the Reserve Bank of India (RBI) has changed the rules related to the interest charged on FD after the maturity of Fixed Deposit / Term Deposit in banks. According to the new rules, after the maturity of the FD or TermDeposit, if it is not paid, then the interest will be given on it as much as the savings account, which is much less than the interest received on the FD.
RBI said in the circular that on its review, it has been decided that if the fixed deposits mature and that amount is not paid, then the amount remains deposited in the bank account, then the interest on it will be equal to the savings account. Or the interest rate on FD, whichever is lower, will be given as much interest.
This rule of RBI will be applicable to FD or term deposits deposited in all private sector, public sector banks, small finance banks, cooperative banks, local regional banks. Fixed deposit is a deposit that is kept in banks at a fixed rate of interest for a specified period of time. This includes recurring deposits, term deposits, etc.