Change in Interest Calculation Methodology

We would like to inform you about an important update regarding the interest calculation methodology for Fixed Deposits (FDs), effective from 18th August, 2025.

As part of our ongoing efforts to improve customer experience, we are updating the way interest is computed on fixed deposits.

What’s Changing?

Quarterly Payout Deposits - Fixed deposits on quarterly payout are computed for interest payout on calendar quarters and TDS deduction (if applicable).

Reinvestment Deposits - Fixed Deposits with reinvestment option are computed interest compounding on anniversary quarters & TDS deduction (if applicable) on calendar quarters.

Going forward, Quarterly Payout Deposits and Reinvestment Deposits booked or renewed post cut-off date will have Interest Payout & TDS Deduction (if applicable) on the anniversary quarter.

(Example If a deposit is booked on 10th July, the interest payout for a quarterly interest payout or reinvestment deposit will be on 10th October i.e. 3 months from the booking date of deposit)


Effective Date:

This change will apply to all new fixed deposits booked on or after 18th August, 2025. Existing FDs will continue under the current methodology until maturity.


Impact on Existing Customers

If you already have an active fixed deposit with us, please note that:

  • There will be no change to the interest calculation for your existing FD(s). They will continue to accrue interest as per the original terms agreed upon at the time of booking.
  • The updated methodology will only apply to new FDs opened on or after the effective date.
  • Upon renewal or reinvestment of your FD after maturity, the new interest calculation method will be applicable.

We assure you that your current investments remain secure and unaffected by this change.

If you have any questions or need further clarification, please feel free to contact your relationship manager or reach out to our customer service team.

Thank you for your continued trust in us.