How to expand FD duration: A step-by-step guide-CNBC TV18

How to expand FD duration: A step-by-step guide-CNBC TV18

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Fixed Deposit (FD) is a popular investment option among Indians, and they are always open for renewal or return. They have a fixed interest rate and closed for a predetermined period.

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You have the option to renew your deposit amount when you take back your funds or mature.

How to expand the duration of a certain deposit here.

  1. Go to your bank’s official website or open a mobile banking app.

  2. Log in the app by entering your user ID and password.

  3. After logging in, click on ‘Management FD’ or ‘Renewed FD’ option.

  4. 4Select FD for renewal including your FD account number, maturity date, current interest date and original amount.

  5. Now, you will only get the option to renew your FD with the principal or to renew with the principal.

‘Renewed only with the principal’ means that the bank only renews the original deposit amount and the earned interest is transferred to your linked savings account. ‘Renewed with principal and interest’ means that both principal and earned interest are renewed in a new FD.

  1. Select a new term for your FD, which usually range from 7 days to 10 years.

  2. Check the current interest rate before selecting the tenure.

  3. Decide that you want “cumulative FD, which means interest paid on maturity for high returns, or” non-observed FD, which means monthly, quarterly, or annual interest payment. ,

  4. After selecting the new tenure and regeneration option, review all the details and click on ‘Confirm renewal’ or ‘move forward’ to complete the process.

  5. Once renewed, you will receive a confirmation message via SMS and email, including new maturity date and updated interest rates such as renew FD details.

You also get the option to auto-renue your FD, which means that you can expand the duration without the need to manually renew it. In this case, the bank will renew your FD for the same term and at the previous interest rate before your maturity date, which will make the process discomfort free.

Why should you renew your FD?

The best thing about renewing FD is that the compound is continuously earning through interest. It protects your investment and gives you a stable and risk-free return compared to the investments related to the market. Renewing your FD gives you continuity in investment, which is important for long -term financial goals.

Auto-renovation also streamlines the process and guarantees continuous increase without the need for manual intervention. It maximizes profits, saving time than later withdrawing and reinstalling.

Additionally, FD helps in renewal savings, preventing the funds from neutralizing low-b-onion savings accounts. It also simplifies the process of regeneration by reducing paperwork and formalities. Investors can now manage their deposits easily and renew FDS quickly and easily with the help of online banking.

(edited by : Sudarshan Mani,

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