Deposits
How to renew FD: A step-by-step guide
Fixed Deposits have always been popular, especially amongst risk-averse investors. They offer a fixed rate of interest and are locked-in for a specified tenure. Upon maturity, you can either renew your deposit or withdraw your funds. However, you might have questions like - how to renew Fixed Deposits and why are FDs beneficial?
Features of Fixed Deposits
- Interest payout options: You can opt for Cumulative Fixed Deposits, whereby your interest gets accumulated over the tenure of FD. This unlocks the benefit of compounding, allowing you to earn interest on both the principal amount and the accumulated interest. Alternatively, you can opt for a Non-Cumulative Fixed Deposit, whereby the interest is released upon accrual.
- Multiple tenure options: You can opt for tenures ranging from 7 days to 10 years.
- Minimum risk: Fixed Deposits offer fixed returns in the form of interest. FDs act as a risk-free investment option because the returns are not linked to the market.
How to renew an FD?
- Visit the concerned bank branch or navigate to the online banking portal to start the FD tenure renewal process.
- Submit a renewal application.
- Specify the details, amount and tenure for renewal of your Fixed Deposit.
- Verify the details and submit your term deposit renewal request.
- The bank will process your request and renew your FD accordingly.
Why you should renew your FD
- Continuity: Renewing your Fixed Deposit ensures continuity in your investments. This is crucial for achieving your long-term financial goals.
- Flexibility: When renewing your Fixed Deposit, you can alter the terms, such as period and amount, as per your needs and goals.
- Convenience: The FD renewal process is really simple. You can renew the FD by visiting your nearest bank branch or even complete the process online as needed.
Is auto renewal possible?
Yes! You might wish to invest in a Fixed Deposit with a long-term perspective without going through the hassle of remembering the maturity date and renewing it. In such a case, you can consider the auto-renewal option. If you choose auto-renewal, the Fixed Deposit will get renewed at each maturity date. If you don’t opt for auto-renewal, you must manually renew your FD. Otherwise, your FD amount will automatically get transferred to your Savings Account upon maturity.
Also Read: Know the different types of Fixed Deposits
In a nutshell
Fixed Deposits are popular; therefore, it is important to learn how to renew your FD to maintain the continuity of your investments. However, selecting the right FD and bank are important. You can start an Axis Bank FD with a minimum investment of ₹5,000. It supports flexible tenure options ranging between 7 days and 10 years. You can invest in the FD directly through Internet banking or mobile applications from your home. Begin your investment now!
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
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