Will my deposit be automatically reinvested at maturity?

It depends on the instructions you gave to the financial institution when you started the FD and their policies. Here is a clear look at what usually happens to help you know what to expect:

• If You Selected Auto-Renewal: If you opened the FD and chose the auto-renewal option, the bank or Non-banking financial company (NBFC) generally transfers the principal and interest to a new FD with the same tenure, using the interest rate they’re offering at that time. Specific policies may vary.
• If You Didn’t Pick Auto-Renewal: Without that option, the bank or NBFC typically credits your money, principal plus interest, to your linked savings or current account. It won’t keep earning the higher FD rate.
• No Instructions, No Linked Account: If you gave no instructions and there’s no linked account, some banks or NBFCs might hold your funds in an account that earns no interest until you advise them on how to proceed.
• New Rate for Reinvestment: If it’s reinvested automatically, the rate might not be the same as your original FD. It depends on what the bank or NBFC offers when the FD matures.
• Check Before Maturity: To ensure clarity, consult your financial institution or review the terms of your fixed deposit. Additionally, consider exploring other fixed deposit options to determine whether reinvesting or withdrawing your funds best suits your financial goals.

Contact your bank or NBFC to verify their policy, ensuring that your funds are managed according to your preferences. Please note - auto-renewal must be specifically selected—it’s not the default. If you haven’t chosen it, your FD won’t be reinvested automatically.