Key Financial Changes That Can Impact Your Wallet From Sept

Customers planning to lock in money for higher returns should check their banks' Fixed Deposit schemes and also look at card transaction terms for more offers SEVERAL personal finance related changes are due from September on the banking and financial services fronts which, if not handled judiciously, can negatively surprise you by hurting your wallets.

- BENN KOCHUVEEDAN

These changes vary from choosing your own debit/credit card network to lower rewards points on certain credit cards transactions to lower minimum due payments on credit cards that will only add to interest burden on your purchase and to paying 50 for Aadhaar updates, among others. The month will also see many banks closing their special deposit schemes, so it is time to lock your money for higher returns.

Higher yielding FD

September is the last month to lock in for attractive interest rates for special fixed deposit (FD) schemes for most banks.

High credit demand and lower deposit mobilisation have been worrying the lender as they lead to asset-liability mismatches. It can be noted that since last December, several banks introduced special FDs with attractive interest rates.

But most of these schemes are ending this month. For instance, SBI's special FD scheme offers 7.10% for 400 days till September 30, and so is IDBI Bank's special scheme, offering 7.35% for 700 days. In June and July, large lenders like State Bank of India, HDFC Bank, Bank of Baroda and Union Bank of India launched special FD schemes offering 7.10 to 7.35%.

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