Bank Fixed Deposit (FD)-What happens if you not renew or withdraw it?

Our blood of investment lies in Bank FDs and we are very much feel safe by investing in FDs. But there are some instances like you deposit today for around 10 Yrs or so and after that you forget it to claim or renew. So what will happen in this case?

Note:- Refer the latest updates on FD rules “RBI FD Rules 2021 โ€“ Auto-Renewal FDs discontinued? “.

Let us take an example. Suppose Mr.X deposited Rs.1,00,000 for tenure of 5 Yrs. But due to his busy schedule or huge investment data he forget to track this Bank FD and neither he withdrawn it nor renewed it. He approached the bank stating that bank need to give him full interest as of applicable FD rate till the period of withdrawal but not maturity date. But bank refused to do so. So what are current laws related to this and how one can avoid such problems?

1) Choose to deposit through net banking-If you have net banking facility for transacting your bank account. Then it is always best to invest in FDs through net banking. Advantage of this is, on maturity date amount will be credited to your account directly without any hurdle or remembrance from your side. Also using this platform for investing in FD will have one more advantage. In case of emergencies you can redeem it instantly and amount will be your savings account. So from both point of view this type of investment is always good.

2) Choose auto renew option-You have two options while depositing. One is auto renew and second is deposit of amount to your account after maturity. If you choose auto renew option then banks will automatically renew your FDs at same tenure for a that day’s applicable interest rate. But here in this option even though you feel your amount continually earn return but have two drawbacks.

First drawback is you may loose some % of interest part. Notice in below image of HDFC current bank interest offerings.

Bank Interest Rate

Now the best offer is to deposit for 1 Yr 16 days as the interest is at 9% but for 1 Yr 17 days it is 8.75%. Thinking so if you deposit for 1 Yr 16 days and chosen the auto renew option. But later on Bank changed it’s offering slab like for all 1 Yr 16 days deposit interest will be 8.75% . After maturity your deposit will get auto renewed to same tenure of 1 Yr 16 days and have possibility to earn less than 1 Yr 15 days or 1 Yr 4 days deposit. You will not get any notification for this from banks. I noticed such slab with HDFC but not with SBI or ICICI. So check for such slabs before investing. Also if you forget to notice that during your maturity such things may earn you lesser return.

Second thing is you planned to invest Bank FD for two years but opted for 1 Yr deposit initially and then auto renew option. In case you need money after auto renew and before maturity then there is penalty as early withdrawal.

Hence it is always advisable to track your FDs maturity.

3) Track your own investments-In India still online banking penetration is less. So people still transact through physical mode. So in this case there is a greater possibility that you may forget the exact date of maturity and so by earn less. Do remember few rules about forgetting to renew your deposit.

  • You need to renew it within 14 days of maturity date to get the continuation from the date of maturity.
  • If you not do so then your deposit is treated as Overdue deposit.
  • Any overdue deposit which is idle for more than 10 years is treated as inoperative account and transferred to Bank’s Depositor Education and Awareness Fund Scheme.
  • You can renew such overdue deposit to the minimum for a 15 days period.
  • How much you get for such overdue deposit entirely depends on individual bank rules. Because RBI’s Guideline on such situation instruct to take their own decision to Banks.
  • But usually you are entitled to at least savings account interest. But in case of co-operative banks, they may decline to pay you anything.

By gazing through all above option you might find that the best available options are either to choose internet banking for investing in FDs or track your deposits for maturity properly.

460 Responses

  1. Dear sir if I invest 5 lakhs for 10 years, if I opt auto renewal option it will automaticaly will be extended for another ten years,and if I closes the fd after 1 year of auto renewed fd the premature penalty will attract for only 1 year’s intrest or the whole 11 year’s intrest

  2. Hello sir …
    I did a fd in 2011 for 15 months……and it was renewed by my side in 2013 for next 15 months…then I had totally forgotten about. It..and then in 2021 the bank credited it in my saving account only amount that was payable on 2013…and did not give a penny of interest after 2013…I have been visiting bank for two year to resolve this ther are saying they will only give saving account interest from 2013 to 2021…plz suggest me what should I do…

    1. Dear Bheem,
      They have to give the FD rate applicable for the period of 2013 to 15 months. Post this period, savings account rates.

  3. Sir i want to know if I had to break my ff in between do i also need to carry my fd renew slip for breaking the fd

  4. Hello Sir , does changing Name in bank account ( Spelling Mistake ) can create any problem with your Old fd’s ?

  5. Dear Sir,I have an fd in PNB dated 4.1.20,due to covid situation I forgot to collect fd certificate from bank.Bank lost the certificate now asking me for indemnity bond for issuing new certificate.Is there any RBI guidelines that states if the customer did not collect the fd certificate within 90 days,bank is not responsible .?

  6. sir, i have a account in indiapost (2015)
    But now i forget the details about them. Sir please suggest me how can I get them now.

  7. Hi BasuNivesh,
    My uncle did a FD in SBI on June 2015.He expired in Dec 2017. We don’t know about the Fd details, Recently We found original copy of FD. We are following continuously with SBI Branch since three month’s they are not able to identify FD details, they are saying account is in purged state. Apart form that no one is able to identify any other details. What might have happened to this account?how to get the FD amount. As far as we know FD suppose to exist.
    Any suggestion would be appreciated.


    1. Dear Ajaykumar,
      They are misguiding you. Rather than waiting for their reply POLITELY, make sure to get it in writing about the status and raise a complaint against the branch immediately.

  8. I have made a fd in syndicate bank,in 2008,under syn500plus plan.i renewed,till 2012,time to time.after 2 3 months after maturity,bank gave back date interest.
    After 2014,I approached bank in Oct 2020, for fd to renew with backdate due interest as fd rates,they have not responded nor renewed it.
    Let me know after deposited,I renewed fd 4 times after maturity date,bank gave me backdate effect, will this time I am eligible to get backdate effect or not.

  9. Respected sir,
    I made an FD in 2005 with union bank on auto renewal basis and also having saving account with that branch.
    every year bank renewed Fd since that time i am only operating my saving account.
    as it crosses 10 years limit
    is my FD became ‘unclaimed deposit’???, as i am only operating my saving account/ current account not FD.

  10. I have to go out of station for couple of months.. My fd comes in that time duration and I want it to get it in my a/c don’t want to renew.. Today I told two banks.. One did everything.. One is telling we can’t do in advance… They said u need to courier us ur fds… Which isn’t possible for me as I’m going for religious stuff.. Just wanna know the exact rule abt it … If one nationalized bank can do.. Why can’t other do it?

  11. Hi,

    My mother has a fd which is renewing soon. Due to lockdown she is unable to go to the branch. Is there a way we can close fd by email or they renew it for the period we tell them to. Please suggest. This with union bank of India. She doesn’t have internet banking for it.

    Thank you,

  12. Hello Sir,
    I had a RD with the bank for 10 years for an amount of 5665 @9%interest. So upon maturity I was to receive 11 lacs. But the bank has credited only 10,17,000. I do not have the passbook to prove the maturity amount. Also I had taken intemediate loans @an interest rate of 11% which I repaid it long before maturity.

    The online banking does not show any statements as the deposit has been closed and also it a government bank so online banking not upto the mark.
    Even the internet shows a maturity amount of 11,00,267

  13. I have a savings and fixed deposit account in PNB started in 2002. I now wish to now close my saving bank account. The bank has asked me for the FD cft. which I don’t think I have received. The bank has asked me to submit indemnity bond on Rs 500 stamp paper. Is it required especially since stamp papers are not available in Mumbai at present?

  14. I have a recurring deposit account which has matured on 04/04/2021 and no renewal or payment option was given. Now if I approach the Bank for making payment on 18/04/2021 , will the Bank pay overdue interest from 04/04/2021 to 17/04/2021 (14 days)?

  15. I have a FD that has matured on 17th of December ,2020. It was not was not credited to my account since I didn’t close it. So I guess it was auto renewed. But I did not receive the Interest Rate on 31st March,2021. So , will I not receive any interest for these three months ??

  16. I had left clear instructions on my online fd to deposit both interest and principal to my savings account on maturity. But I received an SMS saying visit bank otherwise it will be auto renewed. Can a bank do this on a instructed maturity statement?

  17. Sir i have fd of 100000 rupees in 2003 which is maturing on 2004 but i didn’t renewed and refunded can we refund the same now

  18. Is it necessary to approach the bank for encashment of FD on due date ? Can’t bank do this on request over email ? (Case of PNB).

  19. sir

    i have fixed deposited some amount with line to my associate from my savings account directly for 3 years, is it possible to withdraw it as it is matured and bank has auto renewed it ?

  20. Hi sir I have opened Tax saving fd for locking period of 5 years it expired on 17th January 2020. Ideally the amount should be credited back to my account right? But when I checked it online it says it got renewed. Can i break the Fd now.

  21. Sir, my dad tenurity 5 years fixed deposit will close on upcoming 22nd january. So it’s compulsion that we have to withdraw or to close on a same day or we can do a procedure of closing after some days? For that they will take some charges of delay?

  22. Sir pls help,
    Sir I did a FD of 500000 on feb-2019 for 1 year…maturity date- feb 2020 …and Then i forget to renew now sir can bank give interest for remaining months or next year….or they give only 1 year interest…please help sir what can i do

  23. Respected sir
    Before 3 yr my grandfather opened a fix deposite in coperative bank..and he experied after 1 month ..and the time was 3 month of fd..and now when we contact the branch they said that they will give only 3 months interest bcz the time of maturity u have to come.they didnt renewal the fd…pls suggest is it right or if nt right then what we have to do..

  24. Dear Sir, Canara bank FDs receipt, some are not able to close online because they issue physical papers. These FDs appear in the online account summary, but are able to close because physical certificates were issued by the branch. Does this apply to all banks as a rule or is it only for Canara Bank. Please clarify

  25. When we claim for overdue FD. Bank pay us with Saving Banks interest rate. i.e. 4% or 3.5%. But how should they calculate it ? Simple Interest on Principal Amount i.e. Maturity Amount of Fd or Compound Interest on Principal Amount . Pl. Explain. Because as per RBI Interest on savings bank accounts should be credited on regular basis whether the account is operative or not. also Saving Bank interest should be compounding at least on Quarterly or on less than it.

  26. Sir,
    I have deposited 100000 rupees as FD with Canara Bank with Auto Renewal Option. But recently i observed online the FD value as zero and i called the Bank. Bank Representative responded the FD is matured. Then i questioned if it is matured then the amount should be credited into the Savings account. Bank representative responded i need to surrender the Hard copy of the FD to the Bank for the money to be credited into the account. I conveyed i am in corona red zone, so how can i surrender the Hard copy. Bank answer is till i submit the FD Hard copy i wont get any interest on it. When i questioned about i opted for Auto Renewal they convey for that kind of FD we closed Auto Renewal Option.
    Due to Corona i cant travel to Bank branch to submit the Hard copy of the FD, do i have any remedy to get my money back. Please advise and suggest.

  27. sir



  28. Sir my father opened a joint fd with me in syndicate bank kanpurin 2005.He expired in 2016. My younger brother kept all my fd papers due to property dispute.kindly tell me how should i claim for my fd money. Sir can anybody take out money from fd without my sign after father died.if bank not helping where to go.i dont know my fd account no.

  29. Dear Mr.Basavaraj ,

    This is one of the very old issue( approx. 32 years) of my father’s TDR of SBI .
    Now the original TDR is trace out , when my father approached to SBI Branch for claim , the chief Manager refused to accept my father’s claim of the said old TDR stating that we can’t do anything , because its too old and claim will not be entertained .
    Then my father, through an Advocate sent a legal notice stating all the facts w.r.t. said TDR .
    In response to my father’s notice , SBI Advocate replied that there may be possibility that the said TDR proceeds may be given by SBI and its very difficult to trace it our records of renewal and its interest paid to my father.

    TDR amount was 19,000/- when it was invested in the year 1989 .

    What should my father do now ??
    Please advice suitably in this regard .

    Regds… Anil Sharma

  30. i opened tax saver FD with a bank without savings account. They took all KYC & booked my FD & gave hard copy of FD Advice, they also say Netbanking cannot be alloted to me since there is no savings account.
    Now, my query is:- How do i claim my Tax deduction under section 80c. I mean- Can i scan the hard copy of FD advice & submit while submitting my TDS declaratiion form to my organization.
    Thanks in advance ..:)

  31. I like to know which software Bank of India is using to maintain its Term Deposit Ledger and how it has closed my eight Term Deposits ( Dep Amt of Rs 18.55 Lacs in Mar/Apr ) prematurely on their own to transfer the entire amount to their suspense/pvt /indv acct in a CBS system with or without the knowledge of the central server system cell in charge ? Is it possible to hack the CBS system?

  32. i have three FDs of maturity date of nov 2018 of jamshedpur bank …but now i am staying at kolkata…i approached to my bank (both of same bank )employee said it is in overdue status you have to go to jamshedpur to collect the money it will not be given in this city .why ???same bank …now it is core banking system …procedure can be carried out here also. suggest what i have to do ……..

  33. The maturity date of my fd was09/09/2004,but i forgot to renew it due to family reason.But now when i went to bank to take money or renew my fd, the employees of bank told me that amount had deposited in Reserve bank of India. Plz suggest me how can i take my money

  34. My friend’s father in law had FD’s (about six FD’s) worth about Rs.10lacs at SBI,Trichy, with maturity date as 05/04/2002.He passed away on 27/03/2002. These FD’s were traced only now,after about 17yrs. Is there a procedure /Process by which this can be claimed,since he has a mentally challenged son still surviving.Please advice. Regards.

  35. My Mother in Law had fixed Deposits and she died later and I have not renewed nor was it With drawn since 17 yrs it was deposited on my name How can I retrieve now !? Please advise

      1. All your answer suggests that you are afraid yourself to step out of the conventional khusi job. close the thread. A person approach other forums or people like you posing as all knowing when they get very very negative reply and responses. A good bank will always inform the nominated person the procedure to be adopted to get back the money if they are informed of death of the acct holder. Sorry you deserve no respects.

  36. I open FD online in HDFC for 3 year at ROI 7.3%. when checking the FD advise,it’s showing Mature amount and Deposit amount is same. In Maturity Instruction it showing Redeem Principal+ Interest. What does it means? When i will get my Interest?

  37. Hello sir,
    One of my friends father deposited 1lac rupees for fixed Deposit in CBI in 2011 and fd is maturing on 2019, but unfortunately bank employees forget to deduct money from account balance. Later on, in 2015 they deduct one lac from main balance, because they was not aware about that fact that bank has forgotten to deduct fd amount from balance. Now fd is going to mature and when he has reached bank employees offered him 4 percent interest for the time period of 2011-2015.
    Can you please suggest us what we have to do right now?

  38. Hi
    Good day!
    I have NRE FD, should I continue or invest in MF? This is for 5-6 years horizon.
    Presently Gulf situation is fluid……..and may return in a year or two.
    a)should it be in NRE FD until I return since it enjoys tax free interest
    b)Suppose to invest in MF how to invest like one go or STP (25 lac FD)
    c)NRE savings a/c has 70 lac, Starting construction of house in 2 months time now, Can I deposit 7-10 lac in 4-5 different maturity dates so that as construction takes place I can fund with matured amount.
    Kindly reply and guide

  39. My father have a fixes deposit he not given the nominee . So we went to apply for nominee in the nominee form my father has signed but not filled anything . Bank manager told us to apply for nominee after renewal so we came back we forgot that form there my question is is there a any chance to miss use. I want immediate response.

  40. I have an FD maturing in1st week of Jan 2019 which was opened in my net banking with auto renewal option. But, now I donโ€™t want to renew it. Is it possible to stop it from being renewed?
    Also, I have few other FDโ€™s with auto renewal option which I would like to change. Is it possible?

      1. Sir in sbi fd…i want modify maturity instructions….on site…my fd account is not displaying….so there is any time limit when u have to modify….i mean 10 0r 7 day before maturity of fd….my fd get autorenew today for 3mnths….when i will modify maturity instructions

    1. I have same problem like you….in sbi there is option for modify maturity instructions but on my site account not displaying….so there is any time limit when you have to modify maturity instructions

  41. R Savithri
    I have 2 FDs in Canara Bank maturing on 2 nd Dec.i.e. Tomorrow.Since tomorrow is Sunday can encash on 3rd with extra 1 day at FD 2. rate.

  42. Dear Basavaraj,
    I have an NRE Account with SBI. I was working for a company in KSA, which got closed down and I had to return to India.
    My question is can the company credit my balance money into my account, after I convert my NRE account into an savings account?

  43. Hi. i like to deposit 1.5 Crore for 15 days, but bank doesn’t want for that short period. is that bank they have right to refuse short period of Fixed Deposit

    1. Dear Manju,
      If they are not accepting, then they are the BIGGEST LIERS. They don’ have any rights to accept your money for short term or long term. However, they just want your money be with them for long time than short period. Let them give in writing to fight against them. Never bend to their term.

  44. Hi, If I were to opt for 30 days FD for say 5 lakhs for immediate fund for a short vacation (10-15 thousand). Would it be a good idea?

  45. Dear Sir,

    My father-in-law was invested some amount in post office as Kissan Vikas Patra for my wife in 2008. These all investment was made with my wife’s nick name. All important documents are available with latest name. Now how i claim this amount.
    Please guide me.

    Thanks and regards,

  46. Dear Basavaraj,

    Do I have to show Interest income if I renew the FD? My feeling is that since the Principle + Interest earned was again invested with breaking the FD, you may not have to show the interest earned in Income tax file. But when I finally withdraw it(let us assume after 5 years), I have to pay tax on the Interest income in the 5th Year.


  47. My fd from HDFC bank was completed in 2016,due to some reason I didn’t go to bank,and neither withdrawal my money, now it’s 2018 will bank gives me interest for 2 years as saving account?

  48. Hi. I am a NRI and had opened a NRE fixed deposit with SBI.
    If I close the fixed deposit, where will the money be deposited?
    Somebody told me that the money cannot go back to NRE.
    Please clarify

      1. Hi Basu,
        For my case,i am having NRE account for more than 5 years,all my interests earned from NRE deposits are credited back into NRE only including the principal upon maturity. Usually choose 390 days or 1 years with the option Credit back the interests and principal into NRE account…No issues with that.

        Please clarify


        1. Hi rama,
          Have you any idea that after maturity of nre fd, it will be credited to nre saving account without verifying any proof of nri status OR firstly bank verify the nri status then credit the maturity principle, if it is opened online using fund from nre saving account??

          1. In my case,Banks obtained my Permanent Residence status in another country during account opening, which has the next renewal date/date of expiry. Thereafter,i am creating & Closing online FD/s under NRE savings a/c myself,with no issues.

            They have lots of ways to find out if the applicant is an authentic NRI by giving a random call to your overseas number occasionally and also through IP address of the Demographic from which every-time when you login,my friends who are on Employment pass of 1 yr, have been asked to show the Immigration stamp on their passports annually to justify their Non-resident status.

  49. Hi father bought tax saver fdr with lock in period of 5 years in 2013 in which I m nominee.m y father and mother had joint account in pnb from where the fd was bought and the account was linked fd. He died in 2015.i intimate this in bank but they said that the fd will mature in 2018,u will come after locking period and get whole interest.but the same was credited in that account which was linked with fd,irrespective of fact that the account was now in the name of individual not father name was already cancelled after intimation of his death.pls suggest how bank will credit amount in that account .bank official had not even bothered to check the name of account holder.

  50. My Mother has FD and bank locker with SBI. Unfortunately at the age of 81 years she is now paralysed and cannot speak or understand clear commands. Only bed ridden dependent on servants. I have nomination and I am the only child. My Dad also passed away. Bank not ready to given account number and Locker details….Mom unable to let us know the whereabouts of the keys and documents….all her life savings is with SBI and locker. Her health management needs her own funds for her quality care. How and what can be done? To get power of attorney I need account number..FD details? Locker number..keys…. Please help and guide us .

  51. Hello sir,
    I want to ask about something important . I am a high school student my mother had taken a loan of 35 lakh with our FD as security. And the manager of the bank didn’t give full information about the tenure and when asked he told that it will be valid for 10 years as the FD was of the same time. And now they have taken our FD and they said that the tenure was for 3 years and now we are left with noting please sir advice me a way to reclaim our money. We have need of it as it was the only source of income we had.please tell us a way to sort it.

    1. Tanu-I think they issued you the loan pledging the FD. Please check the details like tenure, interest rate and EMI on this. If they not share these details properly, then try to raise an issue with higher authorities.

  52. Hello, I have some issues with my grandfather’s FD,
    My grandfather have a FD from 2002 and grandfather passed in year 2009,
    And my didn’t claim that FD till jan, 08 2018. I went to the bank and ask about the FD breaking procedure
    Bank manger said that, the RBI takes the under that type of unclaimed FD.
    So what should I do?

      1. They are saying that it will take 3-4 month,
        Main problem is we need that amount in 1month.
        And they also saying it will be difficult or 50-50 chance of success.

  53. Sir, My father had invested in FD with my nickname & my mother nickname. and actual name & documents are different. Please suggest me how to withdraw that amount. Can we give affidavit to bank with actual name’s document.

      1. Sir,
        Thanks for your response. We are trying to withdraw FD amount with affidavit & PAN/Aadhar of actual name but Branch Manager is not agreeing on that. He is asking me to make new PAN with nickname (Which is illegal as far as I know). One person can’t have 2 PAN with different names. Please suggest me What to do in this case.

  54. Hi sir, I m in a critical situation,my husband opened fd on 2016, He missed the receipt of fd in mail, so we don’t know the ac no of fd too, how can I get my fd receipt back, is there any option sir, maturity is 10 yrs, 1 yr only gone, plz reply me sir

  55. Hello,
    I have 4 FDs in sbi which i opened in 2011.
    I am now living abroad and so was not able to withdraw the FDs when they matured.
    They have been auto renewed by the bank.
    I also have lost track of my savings accnt with the bank since I did not carry the sbi checkbook when i came here.
    Now i am unable to close those FDs from here. What are my options?
    Is it possible for me to close the FDs and have them put the money in my father’s sbi account?


  56. Hello sir, there was an FD created 13 years ago on the case of my father’s death, the maturity have already ended in August ’17 only but the bank have delayed mine for 3 years and my brother’s for 9 years.. is this is by any rules? Please guide me.

  57. I had a fixed deposit of 50000/-in SBI for 6 yrs which I deposited at the time opening a locker there and the certificate was kept with the bank. The FD has already been matured and I wanted to withdraw it for my medical purpose. But.the Bank refused to pay. Now please suggest me how to withdraw it. I am a Sr. Citizen of 70 yrs.

      1. Linking FD to Locker is against RBI instructions. Mr. Amitav Sarkar can get the maturity proceeds of FD. For locker rent, he can authorise the bank to debit his SB Account. If Branch Manager does not agree, he should complain to regional office and if issue is not resolved in a month then he should approach to Banking Ombudsman of that state.

  58. I am a Sr Citizen of 70 years old and I have a fixed deposit at SBI Gariahat Branch Kolkata for 5 years which was linked with my locker there and which was matured in 1st week of July 2017 and I noticed that it was renewed by the bank itself without my concent and without any intimation to me. Can I now withdraw that FD as it is required for my medical treatment for replacing my Pacemaker. I approached the Bank verbally to withdraw the same which they refused to close the FD a/c. Now please suggest me how can I get back that amount and how to proceed.

  59. Hi i had a auto renewal FD but for some reason I wanted to the money hence put it a cancellation for an auto renewed FD. The FD matured on the 17th of Sep and cancelled on 18th of Sep , there is huge amount close t0 24000/- wiped out , how to manage this

  60. I have opened several online FD with various banks. Though i am tech savvy,my mother wants the printed copy of FD advice as a proof from the banks…in this case,as a customer do i have rights to request the banks to issue me printed FD receipt?

    ICICI provided me, but SBI clerk mentioned that they dont use to provide receipts for FD opened online. Please enlighten me is there any RBI regulations on this matter.

  61. Dear Friend: First of all I must appreciate the way you are being helpful to others.
    I am having several fixed in state bank of India. all fixed were opened on different dates so the maturity dates are also different. All these fixed are on auto renewal in the bank over the years (say, more than 5 years). But, the amount I get, as an annual interest, is always significantly less than what I calculate. For example let us suppose I am having three fixed deposits in a certain bank, say of amount Rs 30, Rs. 40 and Rs. 30. let us suppose the minimum interest being given is 6.0 percent. Do not forget these all fixed are in the same bank over the years (say more than 5 years). Than, according to my understanding, no matter what maturity dates are, the annual minimum interest must be Rs.(1.80 + 2.40 + 1.80) = Rs. 6.0 in one complete financial year (i.e. from 1 April to 31 March).
    Kindly, clarify me.
    With due regards.
    M. A. Suhail

      1. Dear Basavaraj: I am a senior citizen. I have got several FD most of them are on different interest rates i. e. 7.25, 7.35, 7.5, D7.75 and 8.0 percent. All are on quarterly interest (Q4). And payout is two times in a year.
        My concern is whether the total interest given on several FDs (let’s say ten FDs having different maturity date) can be 4.5 percent if calculated. Though, on my all SBI FD bounds the interest rate is written as 7.25, 7.35, 7.5, 7.75 and 8.0. On my TDS form issued from the bank they have not written the account no. of FDs. They have just mentioned the amount of interest paid, Nature of Payment, Deductee Reference No. Provided by Deductor (if any), Date of Payment/Credit. On another page, columns heading are: Sl. No., Tax deposited in respect of the deductee, BSR Code of the Bank Branch, Date on which tax deposited, Challan Serial Number and Status of matching with OLTAS. How can I know the interest mentioned in the TDS form is of what principal amount? Without knowing this how can I know the interest paid to me is correct or not.

  62. Hi ,

    We have a fixed deposit for 5 year. The Fixed deposit was matured on December 2015.
    We forgot to renew the deposit, we just realised and proceed with formalities for renewal.

    But the TDFC says that they will not provide the any interest during the period jan’16 to jul’17. They also say it is RBI regulations that they do not provide any interest rate after the maturity

    Please kindly guide me, how we get interest rate. if you already know regulation about fixed deposit in RBI, provide us the link to read


      1. As per para 9 of Master Direction – Reserve Bank of India (Interest Rate on Deposits) Directions, 2016 dated March 3, 2016, if a Term Deposit matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract rate of interest as applicable to savings deposits. In other words, bank has to pay interest at the rate of savings bank deposit interest rate(3.5% or more) for the period till payment after maturity date.

    1. As per para 9 of Master Direction – Reserve Bank of India (Interest Rate on Deposits) Directions, 2016 dated March 3, 2016, if a Term Deposit matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract rate of interest as applicable to savings deposits. In other words, bank has to pay interest at the rate of savings bank deposit interest rate(3.5% or more) for the period till payment after maturity date.


  64. Hi, I have opened a FD with Rs 5000 in HDFC Bank few years back. Unfortunately I lost the track of it. Now when I see the FD summary through net banking it shows that Principal amount( Initial): Rs 5000, Principal amount (current): Rs 966.

    I am not able to understand what does it mean? Have I lost my money?

  65. Hi

    Recently, I have opend FD for one year in MY SBI account.

    But, that FD account is not reflecting my ACCOUNT.

    That is showed in Matured / Closed account list. I am now outstation. My bank manager was told system will take time to update, Now more than week , still same situation

  66. Sir, My father invested a sum of Rs 75000 in the fixed deposit ..after some years he forgot about the FD. Now recently we have found that FD and saving passbook in our old documents in the month of June 2017..Can we still claim that FD now. That FD is in auto renewable mode. (bank name: Nainital bank)

  67. I have a fixed deposit in SBI that matures on 30 May 2017.As I am out of station can I withdraw my fixed deposit after June 18.

  68. Hi Basavaraj,

    I have an FD in HDFC, it will mature in September. Due to some unavoidable circumstances I want a premature withdrawal of the FD. When I try to do this I see a notification like “interest to be recovered” and shows some xxxxxxx amount. It also shows the penalty amount and the total amount I will get back in my account. Can you please explain what is this “Interest to be recovered?” Is this also a kind of penalty?


  69. Hi,
    Thank you for this useful article.
    I have a question regarding FD’s in Indian banks.
    If I open a 8 day FD with any bank offering 5.50 interest, with 2L as principle amount, the interest earned is 241.00 .
    Now, if this FD is renewed along with earned interest on each maturity – for an entire year, it will get renewed 45 times (360days / 8) .
    Here the total amount earned would be 2,18,112.70 which is more than 9% p.a. return.
    Is there any blind side to this calculation?
    Asking this because as per my understanding banks plan their tenures and interest rates in an intelligent manner so people would opt for the longest FD term.

      1. Hi,
        Please check my calculation below.
        Many thanks for your expert advise.

        Sr. No. , Opening Principal , Days , Interest Amount
        1 , 200000 , 8 , 241
        2 , 200241 , 16 , 241.290405
        3 , 200482.2904 , 24 , 241.8722652
        4 , 200724.1627 , 32 , 242.7480396
        5 , 200966.9107 , 40 , 243.921618
        6 , 201210.8323 , 48 , 245.3983589
        7 , 201456.2307 , 56 , 247.185142
        8 , 201703.4158 , 64 , 249.2904374
        9 , 201952.7063 , 72 , 251.7243924
        10 , 202204.4307 , 80 , 254.4989372
        11 , 202458.9296 , 88 , 257.6279121
        12 , 202716.5575 , 96 , 261.1272173
        13 , 202977.6847 , 104 , 265.0149899
        14 , 203242.6997 , 112 , 269.31181
        15 , 203512.0115 , 120 , 274.0409409
        16 , 203786.0525 , 128 , 279.2286078
        17 , 204065.2811 , 136 , 284.9043217
        18 , 204350.1854 , 144 , 291.1012548
        19 , 204641.2867 , 152 , 297.8566767
        20 , 204939.1433 , 160 , 305.2124607
        21 , 205244.3558 , 168 , 313.2156744
        22 , 205557.5715 , 176 , 321.9192669
        23 , 205879.4907 , 184 , 331.3828736
        24 , 206210.8736 , 192 , 341.6737593
        25 , 206552.5474 , 200 , 352.8679268
        26 , 206905.4153 , 208 , 365.0514247
        27 , 207270.4667 , 216 , 378.3218958
        28 , 207648.7886 , 224 , 392.7904168
        29 , 208041.579 , 232 , 408.5836927
        30 , 208450.1627 , 240 , 425.8466862
        31 , 208876.0094 , 248 , 444.7457821
        32 , 209320.7552 , 256 , 465.4726149
        33 , 209786.2278 , 264 , 488.2487201
        34 , 210274.4765 , 272 , 513.3312202
        35 , 210787.8077 , 280 , 541.0198128
        36 , 211328.8276 , 288 , 571.6654136
        37 , 211900.493 , 296 , 605.6809147
        38 , 212506.1739 , 304 , 643.5546689
        39 , 213149.7286 , 312 , 685.867515
        40 , 213835.5961 , 320 , 733.3144444
        41 , 214568.9105 , 328 , 786.732407
        42 , 215355.6429 , 336 , 847.1363166
        43 , 216202.7792 , 344 , 915.7661302
        44 , 217118.5454 , 352 , 994.1490504
        45 , 218112.6944 , 360 , 1084.18264

  70. Hi ..I have an FD done in my hometown in HP (Shimla). I was totally manual working 8 years back.

    I have been getting interest continuously . Can i go to same banks branch in different city (Hyderabad) and get FD amount credited to savings account/encashed ?

    Thanks in advance

  71. NBFC received 6 TDR as security for loan advanced. FD’s marked as lien in favour of NBFC. The TDs were of 555 days and initial maturity date was December 2012. NBFC forgot to renew the TDs kept as lien . In March 2017 received the maturity proceeds. Maturity proceeds was the amount as mentioned in December 2012. Is NBFC entitled to savings interest rate of 4 percent for 555 days multiplied by the no. of span from December 2012 to March 2017

  72. Hello Mr. Basavaraj,
    This topic is helpful for me. However, I have some issues about FD. Please advice.
    I had one SBI account in Kolkata. There I invested in two FDs in 2011 thorugh netbanking (e-STDR). These FDs are for one year with autorenew option. However, I got a new job in Tamilnadu, so I shifted here in 2013. I opened a new SBI account here in Coimbatore. As the account in Kolkata was less acessed so I forgot the passwords of that account but in the mean time I went over Kolkata and applied to link up both accounts in SBI so that I can remain updated. The link up took place and everything from the old account could be seen here. I did not touch the FDs in between. Now I need some fund and for that I want close those FDs. Here I am facing problem. I can not see any FD under “close account” button though they are visible in account summery, even I can get account statements for those. I went to Coimbatore branch. The official said it has transformed to physical one and I should appear physically with the documents on Kolkta branch preclosure. I don’t have any such physical FD certificate, in fact I never had. And commuting to Kolkata, I don’t know how long the process can take, would be rightnow difficult for me. While I asked how they are changed their status they the person said she can not check it on CBS as these quite old.
    I am very much worried about what will happen to these FDs. Please give some suggestion and make me free of this tension.
    With regards..

  73. Hi Basavaraj,

    My father & Mother had Term Deposit in SBI as my Father has Pass way & maturity date as left but mode of operation is Either or survivor what to do in this case please suggest

  74. Hi, in case of an either or survivor account if there are two people in it and the second holder dies, is it necessary to inform bank about it. The first accountholder is alive and is having pan card registered with bank. Please reply

  75. Sir, in a joint FD (Either or Survivor) with my sister (when she is the Fist AC holder) , after the maturity whether the amount can be deposited by any one of the account holders in his or her own individual separate account.

  76. My wife is gurantor for one of realtives in some loan. He has defaulted. Can creditor freez FD or saving account of me & my wife. FD or saving account is not kept as security with creditor. I am in no way connected to that loan.

  77. I have FDs in joint names of my wife & father. Now if we want remove name of one FD holder can we do it & will it affect the maturity or interest rate. What we need to do?

    1. Shri-Deleting one of the holders will require the consent of both holders. They just delete the names but the FD will continue as usual. You have to visit the bank and submit the physical request for the same (both holders).

  78. Hi Basavaraj,

    I had a FD with Indusind bank and initially I open it as “Auto Close” no option. Later on in their netbanking, I changed the option to “close on maturity and credit the amount to savings account”. However bank did not send any email of the same and there is no audit record in netbanking for me to see now.
    My FD was suppose to mature on 27th Dec 2016. I checked 3-4 days later and FDs was not closed. FD account was still showing as same past maturity date of 27th Dec and original maturity amount. Even statement generated on 31st Dec 2016, shows FD account as is with past maturity date.
    When I wrote to bank about this, they closed the FD and credited the amount to my savings account. But in all it took 15 more days then original maturity date. Bank deposited only original maturity amount. I did not get any additional interest for these 15 days delay. As amount was big, its in thousands of Rs. Bank is not answering my further questions on this and saying I am not liable for any interest due to this.

    Is this something, I can take higher up to Banking Grievance process and will I get interest?

    1. Viklap-You did mistake by booking physically and then changing option in net banking (which hardly any banks allow). Hence, they might not considered your request. However, they have to inform about the same, which they not did. So as per rule they provided the maturity amount ONLY. It is waste to fight in this case.

  79. Hello sir!

    My mother’s FD account is in Synd bank, which is more than 80km from our home, she doesn’t have the certificate and her passbook is also very old (writings are not in keyboard typing but manual). She has the FD deposited slip with her of 2007 (the last deposit to FD). Now she would like to renew it.

    The bank employees have asked for the pan documents and also asked her to get the new passbook. So I just wanted your help regarding is it possible to renew the old FD account + FD interest all together till date? (Since its very far away I cant take the chances by taking her all the way till there)

    She has her old FD number(10 digits) with her but the employees are not ready to accept that and the reason is that it has changed(!?)
    I didn’t know the number changing thing but not sure so, I need your help in guiding me, please.

    Thank you very much ๐Ÿ™‚


      1. For this to renew whether it is possible to get it from the new passbook? I mean since mom has applied for the new one and also in the old book I’m not sure if its mentioned since its hard to understand the writings.

        Thank you so much for the quick reply sir and also thanks for clarifying my doubt ๐Ÿ™‚
        Now that I’m sure of it, I can speak without anything holding me back!


        1. ” Iโ€™m not sure if its mentioned since its hard to understand the writings.”
          I meant to say, “Iโ€™m not sure if its(fixed a/c amount transfer details)* mentioned since its hard to understand the writings.

    1. Dear Basavaraj,

      I have read a few of your comments in here. I have an issue with a couple of FD. Are you able to provide an email address for yourself so that i can message you there rather than this open forum? I would appreciate your reply as a matter of urgency.

      Kind regards,


  80. Dear sir,

    I have idbi bank fixed deposit .This fd start on year 2003 .. Amout is 7 lacs and 25 thousand and their are name in this fd is 7 people and now till date this amount is 12 lacs and 50 thousand …on this fd name on entire family .. And that time .. . Claiment are either or survivor…now problem is bank asked to me for Pan card .. Or 20% TDS deducted from this bank account. And problem is on 7 ppls .. 4 ppls was died… And anyone don,’t have pan card… And all are family dispute.. So, my question is how i withdrwal amount .. From only my side.. Or how to withdrwal this amount .. Pls suggest me..?

  81. Hi sir,
    I create FD’s using auto renewal option.
    So, once my FD matures, it gets renewed automatically. I am assuming that some amount gets debited and then original principal + interest = new principal and then the FD continues for one more period. Now, under net banking, under portfolio amount column, must my portfolio amount keep increasing with passage of time due to FD interest accrual? Or will the interest get credited only once it matures/closes? I hope my question made sense

      1. Hi, thanks for response… But, must my portfolio amount increase due to added interest?
        Are you familiar with portfolio amount with respect to netbanking sir?

  82. Hi Basavaraj,

    1. Suppose If I open and FD of Rs 100000 for 1 year . After the maturity , if I withdraw and I get Rs.8000 as Interest , I know I have to pay tax for that . If I don’t withdraw and renew it , do I need to pay any Tax ?

    2. Every year during the Tax return , we need to show the interest we have earned from Saving or Other Deposits . Does the Bank provide the accumulative interest which we got throughout the financial year if we ask the bank ?

  83. My father had an FD. It”ll mature soon. He was having senior citizen percentage in his FD A/C but the fact is he died few months ago and Bank sent sms that in absence of any instructions the deposit will be auto rolled over.What if I don’t do anything? Will it be illegal continuing this FD ?

  84. My FD is about to be matured. i want to renew my FD for one more year. But i want my interest alone to be paid. Is that possible. Do i need to pay tax for the interest income. My FD amount is the money i saved from my salary after paying tax. Do i still need to pay tax to the interest income.

  85. Hello Basavaraj

    My parents had invested certain amount in FD in PNB in 1997 and they forgot to get it renewed on time after 2000. The FD was treated as overdue FD and was not renewed till 2010 when the autorenew was introduced in banks and now it is automatically getting renewed now since then. But when we approached them, the denied to give us any interest from 2000 to 2010. I need your suggestions regarding our problem to know the possible ways by which we can retrieve that lost interest amount.

  86. i have a FD amount in IOB and the receipt is submitted to my company for employment bond security..
    but i have breached my bond and the company not taken the amount and still in my account after mature date.
    Is there is any option to take my money from my account

  87. Hello sir,
    It happened with my relative .
    Actually last year he died and after one year his family come to know that he had one F.D but he gave his name as a nominee .
    So, advocate gave us solution that all family member has to give their consent or some kind of certificate so any one of them can claim for same.
    My question is what if His family don’t do this all process right now and do it later??
    Will he get interest till the date of withdrawal or maturity???

  88. i have 5 FD done in 1995, but i forgot about it, recently i found them, among them only 1 was renewed but the other 4 were not to be found in there old system. how shall i liqudate the other 4? there is little help from branch.

  89. Hi,
    I had an FD of 490000 with Obc for 2 years and taken a loan against it. Now it was on auto renewal and I have paid back 400000 out of total loan amount of 441000. I want to know since the FD was in auto renewal what will happen to the loan amount which I have not paid yet.

  90. Hi Basavaraj,

    I made a FD of Rs 45,000 in my ICICI bank through net banking. But by mistake (may be by typing under wrong field) i made my FD for a term of 6 years rather than Desired 6 months.
    I want to keep my FD with same amount but change the maturity period from 6 years to 6 months.

    Please Help


  91. Dear Sir,
    Greeting of the day

    Here to say that my late grandfather have surprising FD for me at ICICI BANK LTD.

    Maturity that is 10 Oct. 2016

    But i have no bond…

    Kindly help what can i do for it…

      1. Thanks Sir…

        But sir there are no any legal papers of relations. He was my guardian at whos place o stay and completed my education’

        Govind Singh Prajapat

    1. How do you it is for you ? are you mentioned in the Nominee ?
      If it is then what is the problem ?
      @Basavaraj: Do you think it works that way ?

  92. Hi Basavaraj,

    Can HDFC deduct TDS from my principal amount if interest payable exceeds Rs. 10,000 in a financial year? I have deposited Rs.49,999 to open a regular FD but its principal amount has been reduced to Rs. 49,964 by bank without informing me.

  93. Hi Basavaraj,

    Is there any way of changing maturity instructions from auto-renew to redeem principal in HDFC bank for an existing FD.

  94. Hi, I have a FD receipt maturing on 13-Aug-2016.
    I want to change the period of the FD tenure of the same FD.
    So the date of calculation of the Date will be from the previous maturing date or from the date I have given the request for the change of FD tenure?

    1. I have withdrawn an amount of Rs. 250000 from my NRE account and obtain an FD account for 5 years tenor with 9.5% interest on 11/08/20111. Then i availed a loan RS. 200000 against the said FD with an interest of 10.5%. The maturity amount of my Fd is around 399900 and was matured on 11/08/2016. When i approach the bank to withdraw the amount they informed me that they deducted an amount of Rs. 42000 as Tax. I was not aware about the tax and the bank did not inform me such tax amount when i obtained the FD. How can i retrieve the deducted amount.

  95. Dear Basavaraj,

    I have two questions regarding tax treatment on interest income from FDs:

    (i) How should we treat income tax on a FD of a certain amount for a period of 3 years on auto-renewal basis as I am not getting any principal or interest in my account as it is on auto-renewal mode?

    (ii) If I pre-mature my FD of three years in second year only, how should I treat it in respect of income tax as we have already shown the accrued interest in our income for income tax computation of last financial year?

    1. dear Basavaraj
      came to know while was searching about FD.
      well my father deposited in FD (PNB) they deducted from account and said it’s done. but they dint give any reciept. my question is how can we claim on maturity. please suggest should my father visit again in PNB for reciept or should we print passbook so that details can be seen? please guide

  96. hi.
    reg canara bankk FD..the interest for FD is credited to which account ? FD account or SB account ..our maturity date was last week.. amount not credited in SB account..

  97. Sir,

    I had 2 F.D.s of Rs. 40,000 each in SBI from 2001. Maturity period was 3 yrs., interest was paid quarterly in S.B. A/c and maturity instruction was auto-renewal. Today was the maturity date. I deposited the F.D.R.s for their closure and to transfer the principal amounts to my S.B. A/c but to my dismay, the bank has deducted premature withdrawal penalty of Rs. 500 for each F.D. I consider it to be illegal as today was the maturity date and I deposited my F.D.s in the branch in person today itself. Please give your valuable opinion and advise.

  98. Hello.My mom is having a account in ICICI bank.She has not made any Transaction from 2005.She was having 1 lakh in deposit and 5 thousands in savings.Now we have visited the bank they are saying that we have information from 2008 to 2016.Its an NRI ACCOUNT.That means our 1 lakh is now gone.Wow we have papers and they said that it was closed in 2005 that means the bank has taken the money and not saying also.What shouldi do

  99. Hi,

    I had a fixed deposit in the SBI which was created online for 8000 rs.

    I thought every month the money will be auto deducted but it did not happen. I left it as it is. Now suddenly that 8000 rs which was deducted initially is missing. It is not where appearing in the account summary or account statement.

    Please let me know the status.


  100. Hello.i hav a fd in uco bank and hav to go abroad for two years i will not be able to visit bank for two years.will i affect my fds?

  101. sir,
    my mother open the FD account in bank with my brother nick name but my brother documents as his original name, now FD holder name (brother nick name) not match with his ID proof document name (original name), so what we will do?
    In FD receipt there are two names printed one my brother nick name with signed, and another my mother name with signed, so only my mother certificate is enough or my brother certificate is mandatory.

  102. Sir,
    I have fd in pnb for 1yr and it is in auto renewal option if i want to with draw after 1yr can i do it.
    And if i fill form 15g then they will not deduct my tax on interest.

    1. Jyoti-Yes, you can withdraw it. Go to bank before the maturity and give an application for closure of auto-renewal application and at maturity, you can withdraw it. Yes, if you fill Form 15G, then they will not deduct tax on interest.

  103. Dear Sir,

    I have opened NRI fixed deposit for 13 months this April, through my NRE bank account. What will happen if my status is changed from NRI to Resident Indian before FDโ€™s maturity? Can I keep my NRE bank account till such Fixed deposits are matured and then close it afterwards? Please advise.

    Thanks in advance,


  104. Can i withdraw my FD (booked ofr 2 months) within 7 days of booking it via Net-banking? Also will it incur any charges?


  106. HI,
    I have a FD which will be matured on 19th of this month. Is it necessary for me to go to the bank and collect the amount or will the amount will be credited to my savings account directly.
    thank you

      1. sir I want to know that there is an bank named Maharaja urban co operative banks having ifsc code of yes bank..7 branches in nice..refusing to pay the customer money
        what customer could do legally

  107. I have credit card against my FD in ICICI Bank.My FD is going to be mature next month, I disable auto renewal option.Can I still use my credit card after maturity?
    I’m not going to renew.

  108. sir i have one FD of rs 50 k. My bank account branch is my home town by i have opened the FD from a SBI branch in Kerala due to emergency. Now i am staying in Bangalore and the FD is matured . Do i need to go to Kerala to break the FD
    or i can break it from my hometown branch from which i have created my account.

    As i don’t want to go to Kerala branch is there any way to break the FD from Bangalore or my hometown??

  109. Hii.We invested Rs6,00,000/- in a STDR of SBI on 16/07/2013 @6.5P.A for 6 months.Since my father is in defence he is not present here to break FD on 16/01/2014.When my father came and visited bank they said that your STDR is renewed for next 6 months and it is not necessary for you to visit bank for give us instruction as you are not living too much in hometown and we will automatically renew it in future too.So we left it as we were thinking that we will get interest for that.On 9/02/2016 we visited branch to break STDR they said that your STDR is overdue and you will get only Rs6,17,692 as it was on 16/01/2014.So we filed our complaint regarding this in bank and they sended around Rs70,000 interest on 5/04/2016 and simultaneously deducted Rs7,961 from bank account as tax.In my case they did another STDR from 13/11/2015 to 13/11/2017 for Rs6,17,692 @8.00% P.A as we not give any instruction on over due.I searched SBI site and got interest rate that I can get on 16/01/2014 on maturity amount and find 7% ,7% and 7.25% till 16/7/2015 for next 6-6 months simultaneously and after then 4% till 13/11/2015 on maturity amount and after then by deducting 6,17,692 again 4% is applicable on left I calculated I am expected to get around 71,000 after deducting TDS.I been to manager he said that in case of overdue your interest is credited into account and TDS is deducted after then. I think they calculated from 16/01/2014 till 16/7/2015 with total of about 10.625% as an average and then gave 4% on that.So I wanted to know whether manager is saying truth and I got right amount.Please help.I am thinking to go to file a case in consumer forum when my father come again and check everything again.

    1. One more thing my father have two saving account on the same branch.They opened the STDR on 13/11/2015 with that account in which we not did previously as on 16/07/2013 and credited interest on new account in which new FD is done.why?They said both account is of same person then what is the problem? Reply fast.

  110. For FY 14-15, I paid income tax on interest paid and interest accrued, as per certificate of interest issued by SBI, later I closed FDR before the due date. as the tax already paid in AY how to get its refund or what I should do. please oblige by your guidance

  111. Sir This Is Nadim Modak I Have removed some amount of money from my fd last month can i remove agian in this month too

  112. Hello sir, i want to know this that can i transfer premature FD to some other family member in some other branch of same bank? Like i have a fd in sbi branch and i want to transfer it to my mother’s account in some other branch in same city…

      1. Sir,
        1. I have NRE & Normal Savings bank account in SBI, now wish to create FD in NRE account could you advise there shall be any relation with the above two bank account while calculating the TAX -TDS.
        2. Advise me only the FD amount will be considered for TDS or the hole incomes on a particular account?.
        3. I don’t have PAN CARD, is this will create any problem on my NRE account and it’s FD AC?

          1. Sir,
            Could you please brief little bit why the PAN is important since i am going to deal with NRE AC? also as per discussion with the Bank officer it is not mandatory for NRI category accounts. However i will apply for PAN as per your advise during my next visit to INDIA.

  113. Sir when I was minor my father deposit a fixed amount in sbi with the different name bcz this time I don’t hve any id but in future they changed my Name before maturing this my father died deposit amount is in auto renewal so now how can I claim this plz hlp me what should I do

  114. Hi,

    I am having an FD of 1,000,00 which is maturing in first week of March.Also I am having RD in the same bank.So the bank says that the total interest is more than 10,000 so the TDS will be deducted .So my first question is :
    1)Does FD and RD’s total interest is considered ? or both have interest bracket of Rs.10,000.
    2)If the total interest is considered what are the options to avoid TDS?Can I remove my name on FD and change it to some other family member on Maturity ?or Please suggest any other option.

    1. Piyush-1) When you have interest income from RD and FDs more than Rs.10,000 then TDS will be 10% of that total interest you earned during that particular year.
      2) Do you feel avoiding TDS means avoiding TAX? It is still taxable income for you and you have to pay tax on it according to your tax slab (irrespective of TDS done or not)

      1. Basavaraj,I fully understand that TDS and tax are no different things.TDS is an advance tax deducted which we can claim or on the contrary pay more tax to the Income tax department depending upon individual’s pay slab.My confusion is whether I can remove my name and replace it by a non working member of my family on the FD maturity to avoid TDS.

        1. We husband and wife have 6 FD with canara bank. We invezted in 1998 with 24 thousand each .we did not inform to the bank to re new. Now they are giving only Saving interest rate. What should be do to get rate of interest on FD.

  115. Dear Sir,
    I have deposited Rs.50000 in fixed deposit under tax advantage-FDR for the period of 5 years with interest rate of 8.75 % in a Bank. I have received maturity amount of Rs.70600 after TDS deduction. As per interest rate amount should be around Rs. 75000. On FD certificate maturity amount is not mentioned, only interest rate of 8.75 % mentioned. Kindly guide what should I do?

          1. I have contacted bank, they asked me to approach customer care services. They said maturity amount is not mentioned on FD so cant do much about it.

  116. Hi,

    I am 24 years old and have started my career 2 years back. My annual income is 10lakh. For the first 2 years I have invested only in PPF (only for tax saving purpose) as I am not much aware of the investment options. I don’t want to invest in FDs as the interest rate is very less. So, where should I invest so that I get an average interest rate of anything more than 10-11%? Also, contrary to my thinking should I invest some amount in FD as well?

      1. Hi,
        I am mainly asking for a better investment than FD so time frame is max 5 years. I don’t want to lock it for too long as already ?1,50,000 is getting locked in PPF every year. I am not willing to make too risky investments. Initially I am happy with 10-15% average interest. Also, I don’t want to get involved in a lot of paper work, it would be best if the investments you are going to tell me can be managed online from start to end (some paper work is fine but not much). I have my salary account in HDFC Bank. Let me know if you want to know something else.

        1. Harshit-Sadly you are looking for a product which even GOD also don’t know. Why you know? Because of-Tenure is just 5 years, no-lock-in, not willing to make a too risky investment, but expecting 10% to 15%, don’t want paperwork, ease…Great to know. I am also waiting for such a product. If any adviser on this each gives you solution, then PLEASE pass this information to the benefit of ME and the READERS. The problem here is not the product or investment, but the mentality. Please be realistic.

          1. If I were you then I would’ve simply said “sorry there is not any product fulfilling your requirements” but you had to create such a fuss about it…VERY PROFESSIONAL
            Keep up the good work

  117. I had invested in a IFCI tax saving bond. It has recently matured, at the end of the lock-in period. Upon maturity, the amount originally invested in the bond is showing up in my trading account. However, no interest on my investment in the bond has been credited to my bank account. Am I not entitled to an interest on the investment made in the bond — or is that because it is a “tax saving bond’ no interest will be paid? Can anyone please clarify.

  118. Hi Sir,

    I would like to know what are the tax implications of withdrawal of fd by partners of a firm ? it is to be noted that the Fd is in the name of the firm.


  119. I want to create an e-STDR online in SBI (Netbanking). On maturity instruction there are 3 options.
    1> Auto renew principle and interest.
    2>Auto renew principle and Repay interest.
    3>Repay principle and interest.

    I want meaning of above three option.Please help me.

    1. Pritam-1) This creates one more FD automatically without renewing it. Here both principle and interest is calculated totally. That sum is again created as one more FD automatically.
      2) In this case they create FD automatically at maturity but they pay the interest. Your principle will be automatically created as an FD.
      3) At maturity, they repay the principle and interest to you. They not create any FD on their own.

  120. sir my name is pranav i have a fd 45000 from 14 march 2015-14 march 2016 i m getting 9.25 rate. so can i get the same rate on fd after the renewal on 14 march 2016.

  121. Hi Basavaraj- would the tds be deducted from my FD even if i reinvest the principal and interest on auto renewal? Or will TDS be deducted only when i liquidate my FD?

  122. Dear Mr Tonagatti,
    I have FD for rs 500000 which maturing in January, I am getting senior citizen interest of 9.25% but now interest rates have come down, is there any rule to extend period of this FD before it mature for further period at old interest .

    PK Sharma

  123. Dear Sir, I made the FD for tax benefit in the year 2012 now I want to break this FD. is that possible? if possible what is the procedures,


  124. Sir

    I submitted a tax saver FD on July 2015 for redemption. It was issued on 2010. Unfortunately, i have not received the amount till date. On inquiry every time the staff replied we put into clearing but due to technical issue, transfer was not possible. Six months have passed still i am awaiting for money. This is with SBI, D.N.Road Branch, Mumbai. Please guide me how to get back the amount?

      1. Sir
        Thanks for your advice. Where to complain regarding this issue? Unfourtunately, i did not keep any copy of the FD before submission to Bank.

  125. NRI Fd .. .. My father (is joint of Fd along with me an my husband .jOO JOF is mentioned on the FD . As he is resident Nd v NRI. He is 73 Fd tenure is 10 yrs. lawyer mentions a joint holder if deacessed , surviving joint holders have to get NOC from heirs. The money is ours we added him as we do not have kids. Is this the rule?

    What is the best way to resolve the issue . Should v as my dad to make a will and will that safeguard our investment .

  126. Hi Mr. Basa,
    My father (senior citizen) has invested in two FD. One is with my mother as nominee and second is with my mother as “either or survivor”. Usually, his FDs get autorenewed. He passed away 3 months after the last maturity date. (it has been autorenewed for 444 days, my father passed after abt 3 months post the autorenewal, though a handwritten entry is not made on the reciept).
    Can I continue this FD for the autorenewed period and then get it transferred to my dad’s account after maturity?
    How will the rate of interest be calculated? ( my mom is not a senior citizen)
    What is the maturity date that would be considered? the one printed on the reciept or the autorenewed one.
    Where can I find supporting documents for such issues( any website)

    Thank you.

      1. Thank you Mr. Basavaraj,
        The bank wants us to break both the FD saying the holder is deceased ( one FD is ‘either or survivor’ without nominee and second is ‘operating singly’ with a nominee). They say that if we opt to continue the FD, the rate of interest offered after death date would be as the savings account interest as per RBI rules (as the holder is deceased). As per your post, I understand that I can continue the FD without nomination, in the name of the survivor until maturity . I wanted to know if I can continue FD with the ‘operating singly,’ with nomination , until maturity? or do I have to break it before maturity as the holder is deceased. Can I ask the bank for mandates( stating their rules). Is there any website or URL for my reference clarifying these rules. Please correct me if I have understood anything wrong.

        Thank you very much for your help.

        1. Nair-It is nowhere written in RBI policy itself that after death interest rate on FD will be savings account (even if the holder is deceased). Let them show the ruling. They have to pay savings account interest only after maturity date but not during maturity period. Yes, for “either or survivor” option you can continue the FD with the surviving depositor (inform the bank about the deceased depositor’s death, so that the surviving depositor will hold it with full rights). Regarding other FD, you inform bank about the death and continue the FD without redeeming it. No need to worry. At first they don’t know how RBI rulings and where to apply when. Secondly, your FD may be fetching higher interest rate than what currently they are offering. Hence, they may be insisting you to redeem. You have every rights to ask for rules and notifications of RBI on the same. Please ask proudly.

          1. Thank you very much Mr. Basavaraj for helping with my issue. I appreciate your work on this blog. Thanks again.


  127. One of My client has come with a query . I will be happy if the same is solved with your experient.

    Client Mr x whose father has made a fixed deposit for a term of 10 years @ 10 % per Annum with Mr x as a nominee.

    After 3 years from the sate when the fixed deposit was made, Mr x father has expired.

    Now Mr X want to continue the same deposit with the same rate of Interest for the balance period.

    What is the solution for him. He says that if he closes the account, the interest rate will be calculated accordingly and the Interest what they have paid at higher rate will be reversed.

  128. Hello Sir. I wanted to enquire that if I deposit an FD of 2 lacs for one year and avail a credit card against that FD. And I regularly pay my credit card bills. After one year if I withdraw my FD will I still be able to keep the Credit card with the credit limit?

      1. So it means I have to surrender that credit card or will they reduce the limit and let me use the credit card? Or after that since I will be having a good credit score for one year they can issue me an independent credit card?

  129. Hi ,
    I have an fd of 600,000/- in Corporation bank which I renewed from 365 days to 2 years on the date of maturity i.e. 25/10/15. Now I have decided to take a loan on the same fd which can fetch me 85% of the declared amount! I made a blunder of putting it for 2 years instead of 5 years ! Do I have an option of changing it within 14days from maturity date or is it too late? Also what would be the penalty charges if it will be considered as premature withdrawal? Please advice
    Thank you

  130. Hello, I got my credit card for a FD of Rs 20,000 with credit limit of Rs 17,000.. Maturity date was of April 2015 however when I visited the local branch in mid June 2015, they asked me for a deposit bond which I don’t remember or was able to find anywhere in my home.. I mentioned this to the officer present there however after few more visits to my local branch , I’ve been asked to find my bond paper.. Kindly let me know if I can go ahead and use my credit card to withdraw matured amount or any other options to get my money back..

  131. I hve made an FD on 15 oct 2014 and its maturity date is 15 oct 2015.They didnt credited the amount despite its 24 oct 2015..but when i saw my certificate the account number was wrong….now what to do..

  132. sir,
    For example we have a deposit with a bank and we r getting 10% interest.

    And let’s say the deposit is getting matured on 1.1.15 , and we have forgotten to renewal the deposit.

    Bank has reduced the interest rate to 9% from 1.2.15.

    Now we went to bank on 1.3.15 to renew the deposit to one year. I.e after 2 months..

    In this case the renewed deposit will be getting 10% or 9%.??. For the entire renew period..

    Or will we get 10% for the period of 2 months for which the deposit has
    Not been renewed and 9% from the date on which the deposit has been renewed.

    If we get higher rate of interest and the bank denies to give us.. What to do.

    Because a common person does not have idea abt it.

  133. Hello Basu,

    I had opened an FD with bank of India for 5 years maturing on July of 2009. I had misplaced the receipt and completely forgot about it. I just found the receipt last week. I do not hold a savings account with the bank.
    1. Could you suggest whether I would get the maturity amout back from bank of India?
    2. What can I do if they refuse to pay my money to me?

    Appreciate your help.


      1. Thank you very much Basu. I did go to the bank today and they are going to hand me a bankers cheque of the maturity amount tomorrow as I do not hold an account with the bank. Appreciate your quick help on this. I would definately refer your website to all my friends for financial planning. You are doing a great community service. All the best to you.

  134. I have a (NRE-FD) account passbook and and same amount on FD with syndicate bank in India. I forgot to renew my FD which mature at may 2014 with 9% interest rate. now in oct 2015 if I cashed out do i get same interest rate or different. I have a passbook and FD doesn’t mention nothing auto-renewing it.

  135. Dear Basavaraj,


    I just read your blog they are so informative, thank you very much.. I would like to ask you in doing me a favor by advising me..

    Deposited Rs.25Lacs in a Private Co-op Bank for a period of 333 days for a scheme. I actually sold some property where the person who purchased, went for loan and axis bank gave me two cheques amounting to 25 L, (where I was holding this savings bank a/c) amounts realized in my account and there was an entry in my Passbook, later I opted for an FD as per the bank instructions for which they offered me @9.3% interest for that period (333 days).

    Say I have presented my FD original after my maturity date at the said co-op bank..

    Now my query / doubt is :-
    – Can any bank (in general) ask me to wait for the amounts for debiting in my SB a/c.
    – I heard that, generally private banks do not hold funds, hence, a per-intimation is required to get the amounts.
    – What measurement steps, shall I take if any happens in my case.
    – Will banking ombudsmen take action, if it is a co-op bank.. for delay, or any other issue
    – How much time it will generally take to en-cash a FD after its maturity.

    Thanking you in advance..

    1. Santosh 1) NO, 2) Ideally a day is more enough. 3) You first ask them in written about the delay and reasons for that. Take that and complain with Banking Ombudsman or RBI. 4) Yes, they take action. 5) They have to give you either cash or transfer the fund to account on the maturity day itself. No more extension allowed.

  136. Dear Basavaraj,

    Hello and Hai,

    I just read your blog they are so informative and expertise d. By searching through google, I found out your blog.

    Deposited Rs.19Lacs in HDFC FD scheme through online for a period of 60months @8.75% through online single deposit under cumulative. Deposited on 10-9-2012 till 2017. During the period bank has a common FD interest rate from 1yr to 5yrs as 8.75%. Sir, it is exactly 3 years now and i am in need of the funds for some urgent basis.

    Now, if I pre-maturely close the FD — the penalty amount comes to Rs.1,07,500/-. It means, I will be receiving the MV less by the penalty amount.

    When I deposited this online– since bank is having a common interest rate — no pre-closure-penalty was applicable.

    Till Matureity Period the value comes to Rs.29Lacs+.

    Sir my question and concern iz :-
    1). How to minimize the penalty charges to the bear minimum.
    2). What options is available recourse to me to avail of putting penalty charges to best investment within the bank ? 3). I don’t want the bank and myself on the loosing side ….

    Kindly Guide the process step by step putting all your expert knowledge and guidelines regarding this— as I am a service person. This amount I require for my mothers operation.

    Thanking You,
    May god Bless you.

    1. MVB-You can not run away from penalty clause of premature FD withdrawal. One option you can check with bank is to check for LOAN ON FD. This may avoid you to loose the penalty. But check what will be the interest rate for such loans. If the total interest you pay towards this laon for next 2 years is less than the premature closure penalty then go ahead. If this interest payment is more than I think better to come out.

      1. Sir,
        My FD is for period of 6yrs after maturity, is not renewed for 11 months further FD is closed .Should i get the interest for 11 months.

  137. Hi Basa,

    I have a FD with SBI which maturity date was feb 2014 and has passed. This FD which was opened on a SBI saving account at that time has been closed in 2010. Now I have moved to other city and have a new SBI savings account. How can I get that FD maturity amount. What is the procedure to get that maturity amount.

    Thanks in Advance!!!

    1. Satya-Even though you initiated the FD through savings account, but due to closure of that account not leads to any problem. You have to inform the bank that the old account closed, instead let them deposit the maturity proceeds to new account.

  138. Sir, I’ve opened an FD of Rs.50000 in SBI for a tenure of 1year for my sister. I’ve used online banking to open it. Now, in midterm, I want to increase it to Rs.75000. Is it possible, so that for the residual period, the principal becomes Rs.75000?Opening another FD of 25000 would have served same purpose but having a single FD would be an ease to handle for her. Please guide me with it.

  139. Hi Basavaraj,

    My mother invested in an FD Scheme of UCO Bank in the year 2010 for a period of one year. But incidentally she forgot to collect the certificate from bank, moreover she also lost the transaction slip. Now after 4 and a 1/2 year later during the month of August, 2015, she when went to the bank to inquire about the said deposit, the bank authority is saying that she does not have any such deposit with the bank. As she does not have any substantial document to prove her claim.

    So, in this circumstances, is there any way out to track her FD with that particular bank. Moreover can we take any legal action against the bank?

    Please suggest any possible outcome from this grave situation.

    1. Chakrabarti-I think they can easily track her FD through her PAN card. It is their responsibility to check and let you know. Force them to track and at the same time by producing necessary identity proof, she can claim the FD.

  140. Hi, I have a fixed deposit of 26 lacs with monthly pay out at 8.69 % i booked it for 1 year and 11 days in Jan 2015, so if i modify the maturity date now to another two years. will the new lower fd rates come into effect ?

  141. Hi Basa,

    Good Day.

    For past 5 years, i am benefitting through FD’s creations with bank. My salary account is different and FD account is different. Earlier i used to create FD’s for 45days like that and later i changed my way to create FD’s for 1 year duration. Now, my number of FD’s got increased in the bank. I have choosed auto renewal option with “Auto renew both principle and interest for same duration”. In this case, both my Principle and interest received during that year will be auto renewed.
    My Summary of question: If this continue for another couple of years, it grows higher compare to principle invested. But how the tax will be applicable for the interest what is recieved.
    For Ex: Year – 1 , total FD’s – 5 for each one lac. interest rate 9.0% and Form15G surrendered to bank in Apr2014. So i have recieved other income from interest as 5*9305 = Rs. 46525. But situation is this Rs.46525/- will be auto renewal along with principle amount and moved to next AY 16-17. Now for AY 15-16, did i need to show this interest Rs.46525/- or i have to wait till i close the FD and during closure AY, i have pay the tax for this interest income.
    I am not interested to voilate the tax pay but, interest to know when actually i need to pay the tax.
    If i need to pay the tax for AY 15-16, then how should i calculate the AY 16-17 tax on interest i.e., removing AY15-16 interest earned and then only for the AY16-17 interest on tax to be paid.

    Thanks in advance to guide me…


      1. Dear Basa,

        Are you sure?

        I have just now with one of my uncle who is ex-senior manager in canara bank and he said, till the interest amt in autorenewal mode along with principle, it will not reflect in SB and will reflect only in FD account. Hence it will not tax fileable. only on the credit of interest in SB, we need to perform. I’m confused now.

        please check and help me.


        1. Also, i see disadvantage if “accrued basis” that “If my principle+int or in auto renewal mode, i have to pay the tax from my pocket which is out the principle+int. Just imagine, If i am keeping some 1200000/- as fixed deposit and interest would be approximately above 1 lac and both are in lock on FD, then customer need to pay tax on 1 lac income ie., approximately some 23000/- as self assessment tax.
          so, I hope, tax on interest for autorenewal mode will be “credit of interest on the AY”.

          1. No Basha but my view is , I need to pay tax from the Interest amount and not from my own pocket. If the tax is taken from the interest received then its fine but here the case looks that Interest amount will be received in future (becoz of autorenewal) but tax has to be paid based on FY. How come a person can pay without enjoying the interest amoutn in hand.

  142. I had fds with PNB for 2.20 lacs were due on 10th june 2015. I renew the same along with interest on 10th june. due to short of staff the Bank Manager ask me to collect the same afer 3/4 days. On verification I notice that the amount c/f is not maching with the new renewed fds. there is no deduction of tds.
    Pl advice how I check the same ? or how there is change in amount.

    Pl advice

    Sudhir Ingle

  143. Hi Mr. Basavaraj
    My mother left us on last 30th and she was holding an FD for 400000.00. That was auto renewed on 13 May 15.she also doing savings through RD from last 2 years and one more year to complete the RD. Nomine is registered. I would like tom know how should i proceed with?

  144. Sir, my question is can we take only the interest amount which we get on fixed deposit after the maturity period and continue the fixed deposited amount without breaking it.. Because I’ve fixed deposit an amount 40000/- in February, 2012 in Canara bank. Now the interest which I’m getting is above 10000/- and I want to take that interest amount of 10000/- without breaking the fixed deposit..

    1. Sujay-You have renewal option with interest and principal. But I don’t think such auto-renewal, where only principal can be booked once again. However, you can check the same with your bank. If such auto option not available then you can do it manually.

  145. I invest fixed deposit on dated 16.5.2015 for one year . Now i want to increase days (456 days)in existing FDs . How it possible .

    With regards
    Anil Kumar

  146. Hi Basa,
    I have a fd of 1.4lakhs for 1year period in 2009 at 9% annum and now if I am checking in 2015 the maturity amount is still
    1.53lakhs which is the interest for 1year but what about my remaining 5years.If I calculate my interest for 5yrs the amount
    should be 2.3lakhs..
    Kindly assist me on this.

  147. Hello,

    my mother done 2 FD’s (Amount 60000/- and 74000/-) in a DCC bank in a year 2007 and due date is of 2009. but she forget this and while shifting the home she found document we miss the due date.
    now its almost overdue i.e 6 years. i want to know how much money we will receive.
    my mother visited a bank they want to discuses with higher officers and they will get back.may be they take more time
    can you help me how much money she will get.

    Best regards
    Vidyasagar pawar

  148. Hi
    I have an ongoing FD in SBI under my mothers name and we wish to surrender it before time as we need money for her treatment. We stay in mumbai and the FD is in Delhi. She cannot travel to Delhi to surrender it since she is a cancer patient. Is there a way to surrender the FD through mail or letter to the branch? And If so do I have to mail them the FD certificate as well?


  149. I opened an FD account, cumulative, for 6 months tenure and under Auto-renewal option, on 12th of March. Now, I feel “Credit back to Savings” is a better option and I would like to stop the auto renewal. Please tell me what to do. (It is in ICICI bank).

  150. Hello Sir,

    Very informative article! Sir I have some doubts regarding FDs Kindly share your view. I stay in US and a housewife. I was working before and have 5 FDs already. Now I transfer some amount every month to my account and planning to save in more FDs. So is that going to be taxed or tax free? I have heard that if we save more than 1 lakh in FD then some tax amount will be deducted from interest . Is it ok to have too many FDs in the same bank? Is it ok to have all our savings in too many FDs? And since I am not working and transferring amount from my husbands account to my account is that going to make any problem for me as in for paying tax? And also if I transfer the amount to my husbands Indian account will that be taxed for him? He is already paying Tax in the USA and he is not getting Indian salary. So does he have to pay any tax for transferring amount to his account?

    Thanks and regards

    1. Anita-what is your residential status? Whether you are NRI? For your information whether they deduct tax or not (TDS), interest on FDs is always taxable income. Again it depends on your residential status and tax slab.

      1. No not an NRI. Moved in a few months back. And no plans of settling here. So does investing in too many FDs is a good idea? And also is it fine to have many FDs in my name when I am not working?

        1. Anita-First understand when and for what purpose you need money. Then choose product. Also investing all in a single product is a wrong way of managing money. You can have many FDs. But what purpose it serves to you is important you have to ask.

  151. Can you give me the clear picture of a FD of 1lakh I deposit every year and renew it with it’s interest for the term of 10years..wat wil b d fund value..pls tel me sir..

  152. Hi, I have my salary account in ICICI bank, where they have provision of 7 days, 15 days and 30 days FDs, (4.5 to 5.5 %) which have interest rates more than Saving account (ie 4%). So, I have started doing such short term FDs for my extra fund (apart from long term RDs & FDs). But my concern is that when I open such FDs through ICICI’s net baking portal, they are opened with default “auto-renewal” option (which I am not given an option to change). In such case, if I break a 30 days FD after 2-3 days after maturity (30 days), will it be auto renewed till then, and will there be penalty charges applied when I break it, because in that case it will break the purpose of opening that FD account, as the difference between Saving account interest (4%) and such short term FDs interest (4.5 – 5.5%) is almost equal to penalty charges (0.5 – 10%).
    Any insight/advice will be appreciated.

    1. Tushar-If you opted for “Auto Renewal” while creating online FD, then after maturity period it will be renewed itself (I mean on next immediate day of maturity). If you break this FD prior to maturity period then there will be penalty. If the difference between savings account and FDs is too small then I don’t think it is worth.
      Why can’t you opt for a year of FD? Advantage is, you get highest interest rate and while breaking prior to maturity you get higher interest than savings account interest (even after deducting penalty). I personally keep my liquid fund in a year FD to get higher rate than short term.

  153. I was having an office dealing in tea machinery spares with two partners (i.e my wife and the wife of my friend) for sales tax purpose we have taken an FD from co-oprative bank for Rs.3000/- during 1999. As I have cancelled my TNGST&CST sales tax have returned the FD receipt back. The nominees mentioned in the FD was the name of my wife and my friends wife who is missing for the last several years. As the bank says FD should be signed by two nominees for withdrawal of amount it is not possible for the missing partners signature. How can I solve this problem to withdraw the amount? Please help. AMBROSE PAUL

    1. Ambrose-Hard to suggest you as this situation is unique. Try to get the missing complaint copy and submit the same with Banks (I think still banks insist presence of holder). But better to directly share the situation with bank managers and come out of an idea.

  154. Sir,

    I am expecting some guidance from you.I am working in private concern.My monthly salary is 27k. Am thinking to save at least 5000 for each month But am not interested for long period time may be for 1 to 1.5 years. Can you please suggest me the correct scheme ?

  155. Hello Basu,

    This is a different question.

    But, I need an advice regarding whether to invest in tax savings FDs or ELSS? Considering the fact that FDs return is taxable but it’s not for ELSS.

    But there is also risk of negative rate of return in ELSS, which is not in FDs.

    What should I do?

    Also, if you can suggest some good ELSS schemes.


    1. Prafulla-Both are different ball game product. Never be in wrong belief that ELSS will mature after 3 years so you can easily come out as return is also tax free. Enter into ELSS only if your time horizon is more than 7+ years. Whereas opt for FDs if you have any short term goals like 5 Yrs. Still doubt? Let us discuss further ๐Ÿ™‚

  156. hello Basa sir i want to know about SBI advantage plus credit card against FD amout. I am confused regarding Rs 5000 per month for 11 months totalling Rs 55,000 but as per bank cumulative principal amount is Rs 50,000 only. In this way they are charging Rs 5,000. Kindly clarify my doubt and give some light. Whether advisable to go for it. My annual income from salary is
    Rs 4,50,000.

  157. Hi Basavaraj,

    I am having a LIC-Jeevan Anand Policy. Started investing in 2011 & It was a Period for 20yrs.
    Premium amt-27550/- and Sum assured is 5L.

    Whether I will be getting Guaranteed Addition (GA) & Loyalty Addition (LA) & Final Additional Bonus (FAB) For this policy after Maturity? Whether These additional Bonuses are one time? what might be the minimun Bonus amt, it will be added?

    Thanks in Advance,

  158. 1) my yerly income is 500000, saving is just 37000. i have home loan of 5 lakh, out of that 2 lakh paid. in this should condition should i increase my EMI so that i may get benefit of it in 80c (for principal amount) as well as for loan interest tax benefit. how to complete 1.5 lakh saving in this situation?

    2) what is meant by emergency fund. Where to invest for that? Plz reply. Thanx sir.

    1. Sandip-It is always advisable to increase EMI and finish it off your loan, whether it is beneficial for tax saving or not. So go ahead and first clear off your loan. Emergency fund is some fund which one need to utilize only in case of emergencies like sudden job loss, medical emergencies or some other. It is better to keep around 30% in savings account rest 70% in Bank FDs.

  159. Dear Basa,

    I have been tracking you for past 4 weeks now and I am really impressed by the suggestions you provide. Please advice me with regards to my financial planning .I am 32 years old with a an annual salary of 3.6 LPA .
    I invest 1 lakh in PPF ( for past 3 years now)
    RD of INR 5000 each (Under my wife and daughter)
    Combined ULIP investment of INR 35000 ( IN Bajaj Allianz and ICICI Pru life)
    2 FD already aproximately 1 lakh each (auto renewed after taking the interest each year)
    Term Insurance of INR 30 lakh.
    Mediclaim of 3 lakh family floater.

    Do I need anything more to invest ?Shall I exit from ULIP plans and invest elsewhere? Will equity market or sip would be better for long term growth.Please suggest

    1. Mukul-Don’t over invest in PPF, FD, RDs. If they matches your goals time horizon then correct. PPF is good but investing more of your investable surplus in one single product will harm your life. Increase your term insurance to around 50-60 lakhs. Come out of ULIP. Create emergency fund of at least around 6 months. Start slowly investing in equity mutual funds for a goal of more than 5-7+ years.

      1. Dear Basa,

        Thank you for your quick response one last question are online term plans as good as purchasing from the agents directly. my earlier plan is purchased online someone told me that settlement ratio of online term plan is not good .Is it true?

        1. Mukul-There is no data available about settlement of Term Insurance itself,then how come the guy who guided you come to know that ONLINE term plans have bad settlement ratio? They just spread rumors so that you can buy it offline. By doing so they pitch for business. There is no truth in that to claim so. Go ahead with online.

  160. Good article …Basa ..not agreeing with one line- ‘But in case of co-operative banks, they may decline to pay you anything.’ my area all r renewing retrospectively even if I am late by 1-2 months & but only if want to continue …thanks

  161. Hi Mr. Basavaraj,

    Very informative article. I am a technology evangelist, so I always try to manage my investments through the online services offered by Banks & other Financial Institutions, and some of the benefits have been mentioned by you too. However, I do agree that one must weigh one’s options before choosing the right tenure / investment period so that one doesn’t end up earning less (interest), nor end up paying penalty for premature closure of FDs which all Banks levy. Since the recession started in 2008, people are wary of investing in stock markets and continue to park funds in Bank FDs, which alteast secures their principal. Wish the NDA govt had abolished TDS on Bank FDs so senior citizens and low-income (within Rs. 2.5 lakh from all sources) persons are not burdened with TDS on their income from FDs, as many don’t know (or don’t remember) to submit Form 15G/H to prevent TDS by Banks on interest income.


    1. Ramesh-Thanks for your views. But TDS may not be hurdle in one’s investment decision. Because anyhow it is tax that they need to pay which bank is deducting in advance. So even if they are fall in less than minimum tax bracket then they can file income tax and get it refund. The problem is people don’t know all these things. They just try to avoid TDS.

  162. Hi Basavaraj,

    I invest in FD through net banking of State Bank of India and I get sms alert before maturity date.
    I find investing in FD through net banking easy and as you said we can withdraw money anytime.


  163. Good one Basa.
    I personally believe, Auto renewal may not be advisable as interest rates keep changing across the banks and tenures. Best thing is to invest online, keep a track of it and on maturity date, you may take the call. Its your hardearned money, each rupee counts.
    Sreekanth (

    1. Dear sir
      We did a fd in central bank of india in june 1999 of amount 30000.for 5 years.and we liquid it in july 2020.but bank pay us only 5 year interest. What should we do for got the full time interest
      And wht is the calculation of interest.suggest me sir please

        1. I fixed an amount under special scheme syndicate (formerly now canara bank) but after matured (matured
          on 2020)of 06 months the bank rejected to pay any interest after due date on 18.02.2021 becoz bank said it was special scheme for period of 500days. BUT I failed to withdraw the offer due to lockdown and containment zone of unavoidable circumstances of covid 19. I may entitled atleast saving interest for further period or not?

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