FD maturity mistake: Fixed deposit matured but you forgot to withdraw money? What happens to your amount? Renew or not? — SkimNews
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- Fixed deposits that mature without action from the depositor don't disappear — but the post-maturity rate may differ from the original FD rate depending on the bank's rules and whether auto-renewal was set up.
- Unclaimed deposits that see no depositor action for 10 years from the date of maturity are classified as unclaimed and transferred out of the bank per RBI rules.
- The RBI's Depositor Education and Awareness (DEA) Fund receives the total outstanding amount on the last working day of the month following the 10-year period, with the RBI acting as custodian rather than owner.
- Depositors and legal heirs retain the right to claim the principal along with interest at rates determined by the central bank, even after the transfer to the DEA Fund.
- Nominees or heirs of a deceased depositor must furnish death evidence and identification documents for the financial institution to release the FD amount.
- Before renewing, depositors should compare the bank's current FD rates against their previous rate and weigh tenure, premature withdrawal penalties, and liquidity needs.
Why it matters: For any depositor holding a maturing FD, the 10-year clock matters: missing it shifts the money to the RBI's DEA Fund, where it is preserved but no longer earns the bank's advertised FD rate. The practical safeguard — setting explicit renewal instructions or maturity reminders — prevents years of accumulated interest from lapsing into administrative limbo.
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