If you have a Fixed Deposit (FD) in a bank and are concerned about changes in interest rates starting October 1, 2026, it is best to wait. The new rule does not affect all FDs; it applies exclusively to large deposits, specifically those amounting to 3 crore rupees or more, when opening or renewing them.
Simply put, if your FD is less than 3 crore, its interest rate will not automatically change on October 1st. Therefore, a new interest rate system is not being introduced for ordinary retail customers, and existing FDs will not be affected in any way. The rate and conditions under which the FD was opened will remain the same.
The main focus of the new rules by the Reserve Bank of India (RBI) is on large deposits. A fixed deposit or term deposit of 3 crore rupees or more will be considered a large deposit. For such deposits, banks are required to provide information about the interest rate in a more transparent manner on their websites. This will allow clients making large sums or renewing old FDs to familiarize themselves with the bank's offered rate in advance.
According to the new rules, banks must post daily information about the interest rate for large deposits on their website. This information must be available by 10 AM, with a 10-minute grace period. This gives a large depositor the opportunity to check in advance what rate the bank offers for large sums if they plan to open or renew an FD on that day.
A crucial part of the rules is the requirement for the bank to apply the previously quoted interest rate to such deposits. This reduces uncertainty for the client depositing a large sum, as the rate will be known before the transaction is completed. In other words, the rate is determined first, and then the FD is processed. Furthermore, for identical large deposits made on the same day at the same bank, the rate must be uniform, regardless of whether the FD is done through different branches or banking channels, although exceptions stipulated in the rules may apply.
If your FD is already active, its interest rate will not change automatically on October 1st. The old FD will continue under the same terms and at the same rate at which it was opened. These changes will directly affect large depositors who open or renew single FDs or term deposits of 3 crore rupees or more. Such clients may include companies, trusts, institutions, and other clients depositing large sums. If you have an FD of 5, 10, 50, or 2 crore rupees, there is no need to worry about these changes; the rate on your current FD will not change solely because of this rule.
The objective of these changes is to increase the transparency of the process for determining and providing information on interest rates for large deposits. A client opening a large FD will be able to see in advance what rate the bank offers on that day and, if necessary, compare it with offers from other banks. The RBI issued these revised instructions on July 30, 2026, and banks are mandated to implement them from October 1, 2026.
