FD Auto-Renewal & Matured Deposits
What happens when your FD matures — auto-renewal at the prevailing rate, interest on unclaimed deposits, and the 10-year DEA Fund rule.
Updated 30 September 2026 · 25 banks trackedWhat you need to know
At booking you choose what happens on maturity: renew principal + interest, renew only principal (interest credited), or credit everything to your account. If you choose auto-renewal, the bank renews for the same tenure at the rate applicable on the maturity date.
Maturity instructions
| Instruction | What happens |
|---|---|
| Auto-renew principal + interest | Whole amount rebooked for the same tenure at the new rate |
| Renew principal, pay interest | Principal rebooked; interest credited to savings |
| Close and credit | Full maturity amount credited to your savings account |
If the FD matures and is not claimed
- Under RBI rules (July 2021), interest on a matured, unclaimed deposit is paid at the savings account rate or the contracted FD rate, whichever is lower, until it is claimed.
- Deposits unclaimed for 10 years are transferred to the RBI’s Depositor Education and Awareness (DEA) Fund. You can still claim them from the bank with interest.
- Search unclaimed deposits across banks on the RBI’s UDGAM portal.
Tips
- Review the new rate before auto-renewal — a different tenure may pay more.
- Update your address and mobile number so that the bank can reach you on maturity.
Frequently asked questions
Can I stop auto-renewal?
Yes, change the maturity instruction via net banking or at the branch before maturity.
Does renewal restart the lock-in on a tax-saver FD?
A renewed tax-saver FD is a new 5-year deposit; you can claim a deduction on it in that year if eligible.
Information is for education and comparison. Rates and rules change — confirm with your bank and a tax adviser before investing. FinancePortal is not a financial or tax adviser.