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FD Rules: Interest Calculation Method Changes from October 1; Know New Rules Before Investing!
- •RBI has issued new guidelines to banks regarding interest rates for fixed deposits, effective October 1, 2026.
- •For FDs of the same amount and tenure made on the same day within the same bank, different branches will offer the same interest rate.
- •Fixed deposits above Rs 3 crore are considered 'bulk deposits'; banks must publish their interest rates on websites by 10 AM daily.
- •Interest rates for FDs started before October 1, 2026, will not change due to the new rules.
- •These guidelines apply to commercial banks, small finance banks, regional rural banks, and urban cooperative banks.
Key Questions Answered
Starting October 1, 2026, the Reserve Bank of India mandates that fixed deposits of the same amount and tenure made on the same day within the same bank must receive the same interest rate across all branches. This rule aims to eliminate customer confusion and bring greater transparency to the banking system.
If you started a fixed deposit before October 1, 2026, the new rules will not change your locked-in interest rate. Interest will continue to be paid according to the pre-determined terms until the maturity of that deposit.
Fixed deposits above Rs 3 crore are considered bulk deposits, and banks must publish their interest rates for these large deposits on their websites daily by 10 AM, with a 10-minute grace period until 10:10 AM. However, banks may still set varying interest rates for different types of bulk deposits based on liquidity risk.
