Apr 21, 2018

What is Rollover Fixed Deposit?

Rollover Fixed Deposit (FD) is a facility which relieves  not only the Customers but also Banks from routine repetitive procedures. 

Earlier, people with regular FD's had to visit the branches when their FD's used to mature even for renewal.
Let's discuss this with an example, Mr. A had availed Fixed deposit (FD) facility from a bank and the FD is going to mature tomorrow. He is not in need of money and at present would like to reinvest in another FD. He is out of station and would be returning in after 15 days. If it's a regular FD then it will either lay idle or earn only Savings Bank account interest rate. 
However, if the product in which he has deposited his amount is “roll over fixed deposit”, then he need not require to visit the branch, his matured FD will automatically be reinvested for the same term at the current interest rate. 

This is done automatically and saves time and manpower of both customer and the Bank. Only if the amount is not to be reinvested or if FD's term needs to be changed, the customer will have to visit the nearest Branch.

No comments:

Post a Comment