Started 6 FD with as auto renew, But none of them got renewed.?

Question

Hi, I started around 6 FD with bank as a auto-renew FDs, initially the FDs did got renewed. But I just check my account and for some reason they stopped the renewal of my FD without any official notice to me or any update as why they are doing it. Today I called bank and there response was, yes your FD are auto-renewal but they did not got renewed, i.e we can give you our basic savings interest on those FDS. This complete process would cause me loss of over 50, 000 RS which is a big amount.

Answer 1

Dear Nimish

At the outset, let me clarify that this site is designed by a group of Senior Banking Professionals to assist Bank Customers at large to provide guidance for resolution of any complain/query/grievance in respect of financial services. This site does not belong to any Bank or a regulator, which may please be noted.

If you gave instructions for auto-renewal, the bank is bound to pay you the contracted rate of interest by renewing the deposits with retrospective effect.  However, if auto renewal instructions were not given, the renewal of deposits with retrospective effect is at the discretion of the bank, but to retain the relationship, generally every bank obliges.  Hence, do speak to the branch head/manager and demand renewal of FDs with retrospective effect, if auto renewal instructions were given and if not, request for the same.

RAJA