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A banker friend told me that FDs have become a popular investment option in the past five years. People have become curious about term deposits in public banks and Non-Banking Financial Companies (NBFC). I asked him how to stop auto renewal of FD in SBI. Here’s what he shared with me.
Check out NoBroker Home Loan services to get a loan against your dream house. Calculate your loan EMI with a simple click. Check out the NoBroker EMI calculator today!He told me, there is no process defined on how to stop auto renewal of FD in SBI online. I will have to visit a local branch of the State Bank of India to stop the auto-renewal. I will have to speak to a bank representative before the maturity date of FD. Banks auto-renew FD on the current interest rate. Let me share an example.
Assume that I have booked short-term FD with SBI for 7-45 days (below Rs.2 Cr), and then the current applicable interest rate is 2.9%. Currently, the SBI savings account interest rate is 2.7%. After maturity, if I do not stop auto-renew or claim the maturity, then after maturity, on such unclaimed FD, SBI Bank will give you a 2.7% interest rate (as it is lower than the 2.9% FD rate and 2.7% savings account rate).
He shared with me a few cons of auto-renewal as well.
Without any communication regarding auto-renewal, the bank will renew the FD account on its own.
I might have to pay penalty charges as well in case I wish to withdraw the FD amount before it matures.
This is all from my end on how to stop auto renewal of FD in SBI.
Read more : What are SBI home loan reviews? What is the penalty for breaking the FD? How much interest on FD in post office? How to calculate interest on FD? How to save tax on FD interest?Your Feedback Matters! How was this Answer?
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How to stop auto renewal of FD in SBI ?
Tanya
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2 Year
2022-09-14T11:23:44+00:00 2022-09-14T11:23:45+00:00Comment
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