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Forgotten FD? Your Money is Safe, But Interest Rates Can Change!
M
Moneycontrol•01-10-2026, 21:16
Forgotten FD? Your Money is Safe, But Interest Rates Can Change!
- •A matured and untouched Fixed Deposit (FD) does not disappear; the bank holds the money, but the interest rate may change from the original contracted rate.
- •Under current RBI rules, an unpaid domestic term deposit after maturity earns the lower of the applicable savings account rate or the contracted rate on the matured deposit.
- •Do not assume an FD will renew at its old rate; fresh FDs are generally booked at the bank's prevailing deposit policy rates at the time of renewal.
- •Forgotten FDs can become unclaimed deposits after 10 years, transferred to the Depositor Education and Awareness Fund, but depositors can still recover their money.
- •Regularly check your FD maturity dates, instructions, and linked accounts to ensure your money is earning the expected interest and to make informed reinvestment or withdrawal decisions.
Key Questions Answered
Under current RBI rules, an unpaid domestic term deposit after maturity earns the lower of the applicable savings account rate or the contracted rate on the matured deposit.
If a credit balance or unclaimed amount remains with the bank for 10 years or more, RBI requires it to be transferred to the Depositor Education and Awareness Fund, though depositors or eligible claimants can still recover these funds.
No, a fresh FD is generally booked at the rate applicable under the bank's prevailing deposit policy at the time of renewal, and old rates should not be treated as guaranteed.
