Give necessary standing instructions for renewal of your FD, say analysts

Inform your heirs about deposits and whereabouts of related documents so that they can make a claim

The Reserve Bank of India (RBI) has tweaked the rules regarding the interest that depositors will earn on any amount left unclaimed with a bank after a term deposit (TD) or a fixed deposit (FD) matures. Depositors will now need to be more vigilant in light of this rule change.

The new rule

The RBI notification dated July 2, titled “Review of instructions on interest on overdue domestic deposits”, states that in case a term deposit matures and the proceeds are unpaid, the unclaimed amount shall earn the rate of interest applicable to a savings account, or the contracted rate