Several important updates in bank Fixed Deposits (FDs) have been introduced in 2025, which will impact investors.
These changes include revised TDS (Tax Deducted at Source) rules, new guidelines for partial withdrawals, and special provisions for senior citizens.
Understanding these updates can help you manage your FDs more effectively and maximize the benefits.
The Reserve Bank of India (RBI) has implemented these rules to provide depositors with greater flexibility, security, and transparency in FD-related services.
By keeping these changes in mind, you can make informed decisions to ensure your savings are safe and grow efficiently.
Major Updates in Bank FD Rules 2025
Revised TDS Rules
For General Citizens: The TDS limit on interest earned from FDs has been increased from ₹40,000 to ₹50,000 per financial year. This change will be effective from April 1, 2025.
For Senior Citizens: The TDS limit has been raised significantly from ₹50,000 to ₹1,00,000, giving senior citizens added benefits and reducing the fear of excessive TDS deductions.
Note: If PAN details are not provided, TDS will be deducted at 20%. TDS is applicable only when the interest earned exceeds the set limits.
Partial Withdrawal Rules
From January 1, 2025, FD holders can withdraw up to 50% of their total deposit amount or a maximum of ₹5 lakh (whichever is lower) within 3 months without earning any interest.
The remaining deposit will continue to earn interest based on the bank’s applicable rates.
Additional Key Changes
FD Maturity Rules
If an FD is not renewed after maturity, the amount will earn interest at the same rate as a savings account. It’s essential to track your FD’s maturity date to ensure timely renewal and avoid losing out on better interest rates.
Other TDS-Related Updates
TDS on Securities Interest: Increased to ₹10,000.
TDS on Dividends: Exemption limit for dividends from stocks or mutual funds raised from ₹5,000 to ₹10,000.
TDS for Insurance Agents: Commission limit increased from ₹15,000 to ₹20,000.
TDS on Brokerage Commissions: Limit raised from ₹15,000 to ₹20,000.
TDS for Technical Services: The limit has been increased from ₹30,000 to ₹50,000.
