FD Rule Change: Will Fixed Deposit interest rates change from October 1? New RBI rules explained

Under the new rules, banks must update the interest rates for bulk deposits on their websites by 10 a.m. every working day.

Edited By: Victor Dasgupta

Published: September 24, 2026, 12:59 PM IST

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FD Rule Change

New Delhi: Several major changes are set to take effect from October 1. One of these changes is related to fixed deposits (FDs). The Reserve Bank of India (RBI) has made major changes to FD rules, which will come into effect from October 1, 2026. These changes include updates related to interest rates as well as several other important provisions. Here are some of the key details:

The fixed deposits of Rs 3 crore or more are classified as bulk deposits. Under the new rules, banks will now be able to offer differential interest rates on bulk deposits under the Liquidity Coverage Ratio (LCR) framework.

Here are some of the key details:

• The RBI’s move is aimed at giving banks greater flexibility in determining interest rates.
• From October 1, banks will be required to clearly display their FD interest rates on their websites.
• Under the new rules, the interest rates applicable to bulk deposits must be updated on the bank’s website by 10 am on every working day.
• The RBI has stated that the latest interest rates should be updated by 10:10 am each day.
• The RBI has issued strict instructions to banks that interest rates on fixed deposits booked on the same date must be exactly the same.
• There will be no discrimination in interest rates for FDs of the same amount booked on the same day at any branch of the bank.
• Since the RBI’s new rules are primarily related to bulk deposits, they are unlikely to have a significant impact on ordinary retail investors.
• These RBI rules will increase transparency in the banking system, while investors will also receive daily updates on FD interest rates.

How Safe Are FDs?

Fixed deposits (FDs) with banks are considered safer than many other investment options and also offer assured returns, which may not be available with other forms of investment. Over the past few years, FDs have remained particularly popular among senior citizens because they generally receive higher interest rates than regular investors. Although interest rates vary from bank to bank, FDs typically offer interest rates of around 6%–7%.