Fixed deposits (FDs) have long been a reliable investment avenue, offering a secure way to grow your savings. As your FD matures, the decision to renew becomes pivotal. This is where FD auto-renewals come in —a seamless, hassle-free process that effortlessly extends your investment, ensuring your funds consistently accrue interest.
Renewing your FD is a straightforward process. Here are common methods:
A traditional yet effective method is visiting the FD issuer’s office in person. Speak to a representative who will guide you through the renewal process and provide the necessary forms.
Many issuers offer online facilities for FD renewal. Log in to your account, locate the FD section, and follow the steps to renew your deposit digitally.
If your bank or NBFC has a dedicated mobile app, check for FD renewal options. Most apps provide a user-friendly interface for managing your deposits on the go.
Forgetting to renew your FD can lead to a few scenarios:
If you have opted for auto-renewal, your FD will automatically renew for the same tenor at the prevailing interest rates. This ensures your funds continue to grow without any disruption.
In some cases, if you forget to renew and haven't opted for FD auto-renewal, the matured FD amount may be transferred to a savings account.
It depends on the issuer’s policies. While some issuers allow changes during renewal, others may require you to prematurely withdraw the deposit and book a new FD.
Issuers may impose penalties for delayed renewal. It's advisable to check the FD issuer policies and renewal timelines to avoid any additional charges.
Yes, many issuers offer a grace period after the maturity date for renewal. However, it's essential to act promptly to avoid any potential penalties.
This depends on the issuer’s policies. Some may allow changes during renewal, while others may require premature withdrawal and a new deposit.