BANKING AFFAIRS

Detailed explanation-1: -Due to this limitation, some banks offer additional services to FD holders such as loans against FD certificates at competitive interest rates. Banks may offer lesser interest rates under uncertain economic conditions. The tenure of an FD can vary from 7, 15 or 45 days to 1.5 years and can be as high as 10 years.

Detailed explanation-2: -The duration of Fixed Deposits is flexible. It can range from 7 days to 10 years. The rate of interest for the Fixed Deposit depends on the period for which the funds are locked in. Just like a Recurring Deposit, a Fixed Deposit amount cannot be withdrawn until the maturity period.

Detailed explanation-3: -The maturity term for an FD account ranges from seven days to ten years. A short-term fixed deposit has a maturity term from seven days to a maximum of 12 months. Fixed deposit interest rates vary from bank to bank and this will fluctuate and may be also revised.

Detailed explanation-4: -The minimum tenure of your bank FD can be as low as 7 days. What is the difference between Tax-saver Bank FD & Regular FD? The money invested in a tax-saver bank FD is eligible for a deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961 and subject to a lock-in period of 5 years.

Detailed explanation-5: -The new FD rule is related to interest being paid on unclaimed or overdue FDs. As per the new rule, if a term deposit matures and proceeds are unpaid, the unclaimed amount will now earn a lesser interest rate.