As all of us know there has been hike in the interest rates & deposit rates by various banks recently. Increased interest rates are applicable to all borrowers i.e. those who have availed the loan & those who will avail it after the increase. However, my question is : Is the increase in deposit rates applicable to existing Fixed Deposit holders or not? In other words, do existing FD holders continue to receive interest mentioned in their FDR or at the increased rate?
4 Replies
CA. Shikha
(Chartered Accountant)
(4143 Points)
Replied 04 July 2008
existing FD holders wud continue to receive the same interst rate.
The new interest rates wud be applicable at the time of renewal.
CA Rajesh S
(Chartered Accountant)
(1581 Points)
Replied 04 July 2008
In the case of FD the rate of interest is fixed, (not flexible as in case of home loans , etc under flexible plan). Hence the increase or decrease in rate of int does not affect the existing FD.
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