Inoperative bank accounts to earn 3.5% interest

Posted on August 23, 2008
Filed Under Personal Finance |

Here’s some good news for those who have bank accounts they’ve forgotten to close or are no longer keen to re-use. The RBI has said that banks must continue to pay interest  @ 3.5% on inoperative accounts and on unclaimed fixed deposits (FDs) after their maturity. Banks have also been barred from charging any fee on activation of such inoperative accounts.The RBI, in it’s notification, said, 

“There is a feeling that banks are undeservedly enjoying the unclaimed deposits, while paying no interest on it. Interest on saving accounts should be credited on regular basis whether the account is operative or not. If a fixed deposit matures and proceeds are unpaid, the unclaimed amount will attract interest.”

RBI has also asked banks to trace the account holders or their legal heirs directly or through introducers. It told banks to contact customers in case accounts have remained inoperative for more than a year and find out the details of their new accounts, where the money could be transferred.

RBI has also declared that savings and current accounts must be treated as inoperative if there is no transaction for over two years and not one year as it is presently.

If you’ve had such an account and were not keen to re-activate it due to the high charges, here’s your chance to do so now.

 

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