What if we told you that your trusted Fixed Deposit might have a hidden reward, ready to be unlocked at maturity?
While FDs are renowned for their safety and simplicity, there's a fascinating twist that many may overlook. FD renewal opens up a realm of possibilities, including the chance to earn extra interest on your initial investment. That's right - the perks don't stop at maturity.
The world of personal finance often holds delightful surprises, and today, we're here to uncover a particularly captivating one - the world of extra interest in FD renewals. If you've ever wondered whether renewing your FD could lead to more significant gains than you imagined, you're in for a treat. Join us as we embark on an enlightening exploration of the possibilities that lie within FD renewals and learn how this age-old investment tool could have a few surprises up its sleeve!
Key Highlights
- When the fixed deposit matures, there are two options to be given either withdrawal or renewal.
- Upon renewing the FD one can gain additional interest rates along with the existing interest rates at the time of their FD maturity.
- The auto-renewal option is wise for those who do not need that money to use it shortly.
- If the interest rates have increased one will be to avail additional interest + increased interest rates upon renewal.
Unlock Extra Interest Rewards
Renewing your Fixed Deposit isn't just about extending your investment; it's about unlocking a world of incredible rewards. Imagine earning more than you ever thought possible on your initial deposit - that's the power of additional interest upon renewal! FD renewal can lead to an average increase of 0.1% to 0.5% in interest rates compared to the initial deposit period. Shriram Finance offers an additional interest benefit of 0.25%*p.a. upon renewal of fixed deposits.
Perks of Renewing Fixed Deposits
Maximize Your Earnings:
FD renewal allows you to capitalize on the power of compounding, boosting your returns significantly over time. By reinvesting your matured FD at attractive interest rates, you create a snowball effect, multiplying your savings effortlessly.
Seamless Investment Process:
Renewing your FD is hassle-free and requires minimal effort. With just a few clicks or a visit to your financial institution, you can continue your investment journey without any complications, making it a convenient option for busy individuals.
Lock-in Security:
By renewing your FD, you lock in the interest rate prevailing at the time of renewal. This shields you from potential fluctuations in interest rates, ensuring a stable and secure investment for the renewed tenure.
Flexibility of Tenure:
FD renewal provides you with the flexibility to choose a tenure that aligns perfectly with your financial goals. Whether you want to reinvest for a short-term gain or a longer period, the choice is entirely yours.
Leverage Higher Interest Rates:
Often, financial institutions offer special interest rates for FD renewals, rewarding loyal customers. By renewing your FD with your existing financial institution, you can take advantage of these exclusive rates and maximize your earnings.
How do I decide whether to renew the fixed deposit or not?
You should know about making an informed decision regarding your fixed deposit to maximize the fixed deposit renewal additional rate of interest
If you have invested in multiple fixed deposit schemes, maybe you will face difficulties in tracking. You should select the auto-renewal option offered by banks and financial institutions. Choosing this option will save the interest earned by the depositor that they might lose due to forgetting the maturity date because of having multiple FDS.
Secondly, auto-renewal saves the time of depositors. They do have to stand in long queues to put in a request for auto-renewal. It could take place from the comfort of home. The auto-renewal policy of fixed deposit varies from one institution to another. Some financial institutions do FD renewal for the same period, that is 1 year in most cases. But there is no surety that in auto-renewal, you are getting the best interest rates. If you are going with the option of manual renewal, there is the possibility that a fixed deposit for 15 months is offering you higher interest than keeping a fixed deposit for 12 months tenure.
Shriram Fixed Deposit Renewal Process
At the time of investment, the customer can either choose auto-renewal or auto-debit (The maturity amount will be deposited in the account provided by the customer while opening an FD). Upon choosing auto-renewal the customer’s FD will automatically be extended to the same tenure with the existing interest rates at the time of maturity along with an additional interest rate of 0.25%* p.a..
In the event that the customer has not opted for any of the above-mentioned options then the customer will be sent reminders at the interval of 60 days, 30 days and 15 days before maturity to choose whether to renew or to get the maturity amount back to their bank account. Upon choosing renewal at this stage the customer will be provided the option to choose the tenure and the amount they would like to reinvest in their renewal (Note: The customer has the option to decrease the reinvested amount from the maturity amount, but they are not allowed to increase their investment during renewal). Once the tenure and principal amount is decided they will be able to renew their FD with an additional interest of 0.25%* p.a.. along with the existing interest rate at the time of renewal.
If a customer is not paying any heed to the reminders, the FD will be automatically reinvested after a waiting period of 90 days.
Conclusion
As we come to the end of this financial expedition, one thing is abundantly clear - FD renewal is the ultimate secret to unleashing the hidden goldmine of extra interest. Embrace the power of compound growth, lock in higher interest rates, and enjoy the peace of mind that comes with capital preservation.
Take charge of your financial future with Shriram Fixed Deposit. Earn interest rates up to 9.40%* p.a.. inclusive of a special interest benefit of 0.50%* p.a.. for senior citizens, 0.10%* p.a.. for women depositors and an additional 0.25%* p.a.. on renewal of Shriram FDs. Accredited with [ICRA]AA+ (Stable)” by ICRA and "IND AA+/Stable" by India Ratings and Research, Shriram Fixed Deposits offer higher returns with a higher degree of safety and security on your investment.
