How to avoid loss of interest on Overdue Term Deposits?
The best way of avoiding loss of interest on overdue deposit is to give renewal instructions before the due date. Remembering various due dates and ensuring that renewal instructions along with original deposit receipts reach the bank is cumbersome. Many banks have an automatic renewal scheme wherein the entire amount (principal + interest) is reinvested into a fixed deposit of the same tenure on the maturity date. The original deposit receipt is retained by the bank and the depositor has an option of not renewing by giving prior instructions.
