You might have heard of the age-old adage where people are advised to make investments in the equity market and forget about it for a few years. This rule however, is not quite applicable to the behavior of debt instruments as they require constant monitoring over their performance. Lest you forget about them, you have to bear the cost of the same. A lot of discrepancies can occur if you forget to track your transaction at the time of its maturity. Banks can dispose all such old records and not to mention the loss you may incur by keeping your investments stagnant for so long. Although banks give you an option to automatically renew your fund after it has completed its tenure, or you can choose to withdraw your funds once the date of maturity may have attained. As there is a lot of rampant fear among people that they may forget about their deposits and thereby lose them, they conveniently opt for the auto renewal option. This is not feasible keeping the current market scenario in mind, as you can preferably withdraw your investments and invest them in different deposits for a higher rate of interest. By opting for options like auto renewal, you are just barring profitability from entering your door. Auto renewal is an unprofitable option especially since the amount will be renewed at the existing rates of interest for the same amount of time. Chances are that may be other deposits are gaining higher rates of interest on the same sum of money.
Thus, in order to avail maximum benefits with your bank deposits, constantly monitor and track their performance. Set an alarm or a reminder in your mobile phone or on your calendar, stating the dates of maturity of your debt instruments. Further, always enquire about your investment to the bank on the specified due date. If required, depending on the state of the economy, you can conveniently opt to either continue investing in the same fund or turn towards more profitable avenues. Also, keep an eye in the frequency and manner in which interest rates fluctuate in the economy as it will help you take an informed decision. If you had earlier chosen for the auto renewal option, you can modify the same prior to the due date of the fund. Even if you want to walk out of the auto renewal option, then you have the flexibility to do so even on the date of maturity of the fund. However, if your deposit has already been sent for renewal then you have no way for cancelling such a mandate. If you still seek to withdraw your funds, then you will have to bear the brunt of penalties on premature withdrawals besides other charges.
In order to hold the loyalties of their customers, banks are trying to alert their customers before the arrival of the due date of their deposits. To avail these services, all you have to do is register yourself for mobile SMS alerts and email alerts from the banks and you can rest until the due date arrives. With the help of such facilities, customers are also informed on the current rates of interest offered on deposits, thereby giving them adequate time to come up with a decision. Customers can also opt for another option, besides auto renewal, wherein funds, on their date of maturity, are automatically credited to the savings account of the investor. This makes sense in the long run as you will still earn interest on your funds that have been moved to the safe precincts of your account. When opting for loans like a personal loan to finance your requirement is not an option, then seriously consider about investing in the right avenues so that you can accumulate the required finances to fund your requirements.