What happens if I do not renew my ₹1 Lakh fixed deposit after maturity?

Here is what usually happens if you don’t renew your ₹1 Lakh fixed deposit after maturity:

• Transferred to Savings Account: Many financial institutions transfer the deposit and its interest to your savings account, where it earns a lower rate, like a regular savings account. Please note, you must instruct the financial institution to transfer the deposit to a savings account.
• Auto-Renewal: If you selected auto-renewal, the bank or non-banking financial company (NBFC) might restart the deposit for the same term, but at the current rate, which could be less than before.
• No More Interest: If you neither renew nor withdraw the deposit, the funds usually stop accumulating interest after the maturity date, resulting in no further growth.
• Held by Bank: Some banks or NBFCs temporarily hold the funds in a designated account that earns little to no interest until you provide instructions on how to proceed.
• Bank Notifications: Most financial institutions notify you before the maturity date via email or SMS, prompting you to choose whether to renew the deposit or withdraw the funds.