Unrenewed or Unwithdrawn FDs: Consequences (2024)

Auto-renewals and withdrawals of FDs

Fixed deposits are a great way of investing your savings and multiplying your wealth. Since they are secure and risk-free, they’re the ideal choice when you don’t want to take market risks. However, while fixed deposits require significantly less monitoring as they promise fixed returns, you need to be watchful of the maturity date. Here is all you need to know about unclaimed fixed deposits.

Unclaimed bank fixed deposit

The procedure followed by a bank when a fixed deposit is unclaimed may vary according to the rules and regulations set down by the bank. Most banks tend to follow a similar direction when fixed deposits are unclaimed after the maturity date—they can pay the current savings account rate or renew the unclaimed fixed deposit unlimited times. This decision solely depends on the bank you have invested in. If a fixed deposit is unclaimed after two or three consecutive tenors, the bank may try to contact you for further instructions on how to go ahead with the investment. If the bank cannot track down the investor or nominee, it will continue to auto renew the fixed deposit at the current rate of interest. You can check FD interest rates in India first before deciding.

Additional Read: A simple guide to using a Fixed Deposit calculator

Unclaimed company fixed deposit

If you have invested in a reliable company’s fixed deposit such as the Bajaj Finance Fixed Deposit the company will ensure that it reminds you of the maturity date three months prior. A sourcing agent from the company will remind you of the maturity date and inquire about how you want to proceed. In most cases, you will need to visit a branch to renew the fixed deposit which must be done seven days before the maturity date. You have the freedom to choose between investing only the principal amount or the total amount of the principal with the interest gain. This process makes unclaimed fixed deposits a rare possibility. Even so, if a fixed deposit is unclaimed, the maturity amount is transferred into the bank account provided by the investor in the initial investment form. This is done using national electronic fund transfer (NEFT) or real time gross settlement (RTGS). If the electronic transfer amount bounces, the amount is sent to the investor in the form of a cheque.

The safer option

Both banks and companies try to avoid a situation wherein there is an unclaimed fixed deposit. However, the safer option about such a situation would be investing in a reliable company’s fixed deposit. The chances of an unclaimed company fixed deposit are less as compared to a bank fixed deposit. This is due to the company protocol of contacting customers well before the maturity date. Renewing FDs is profitable and has several advantages.

Benefits of renewing FD

Thus, if you have multiple investments and find it challenging to keep track of them, company fixed deposit is the better option for you. In addition to being reminded of the maturity date of your investment, you will also benefit from higher returns and more flexibility.


Calculate your expected investment returns with the help of our investment calculators

Investment Calculator
SIP CalculatorFD calculatorSDP calculatorGratuity Calculator
Unrenewed or Unwithdrawn FDs: Consequences (2024)

FAQs

Is plant-based regulated by the FDA? ›

Foods derived from new plant varieties must meet the same safety, labeling, and other regulatory requirements that apply to all foods regulated by the FDA.

What are FDA guidance documents? ›

About FDA Guidances

Guidance documents represent the Agency's current thinking on a particular subject. They do not create or confer any rights for or on any person and do not operate to bind FDA or the public.

What are the FDA regulations? ›

The Food and Drug Administration (FDA) “is responsible for protecting the public health by assuring the safety, efficacy, and security of human and veterinary drugs, biological products, medical devices, our nation's food supply, cosmetics, and products that emit radiation.”

Is almond milk milk FDA? ›

New draft guidance released by the FDA says that non-dairy milk alternatives, such as almond milk or oat milk, can still be called milk.

What does plant-based mean on food labels? ›

The most formal definition of a 'plant-based' product is from the Plant Based Foods Association, based in the US. In its Certified Plant Based Claim Certification Program, it considers 'plant-based' to mean: “Plant-based foods are defined as foods made from plants that do not contain any animal derived ingredients.

Are FDA guidance documents legally binding? ›

Guidance documents are issued to provide a little bit more information about what people can do to comply with existing requirements. They represent FDA's current thinking on matters, but they are not binding, so industry could also do things in a different way, as long as they comply with the statutes and regulations.

What are FDA approval requirements? ›

FDA approval of a drug means that data on the drug's effects have been reviewed by CDER, and the drug is determined to provide benefits that outweigh its known and potential risks for the intended population.

Is FDA guidance mandatory? ›

Guidance documents are not binding for FDA or the public. Guidance should be viewed as recommendations unless specific regulatory or statutory requirements are cited.

What powers does the FDA have? ›

The Food and Drug Administration is responsible for protecting the public health by ensuring the safety, efficacy, and security of human and veterinary drugs, biological products, and medical devices; and by ensuring the safety of our nation's food supply, cosmetics, and products that emit radiation.

What are two laws enforced by the FDA? ›

Laws Enforced by the FDA. Includes the Federal Food, Drug and Cosmetics Act, the 1997 Modernization Act, and over 30 other acts, amendments, provisions, and laws.

Who controls the FDA? ›

The United States Food and Drug Administration (FDA or US FDA) is a federal agency of the Department of Health and Human Services.

Does the FDA regulate all herbs and supplements? ›

More Information: Dietary supplements are regulated by the FDA, but much of our role begins after products enter the marketplace. In fact, in many cases, companies can produce and sell dietary supplements without even notifying the FDA.

What products does the FDA not regulate? ›

The ingredients (except certain colors) and labeling of cosmetics, such as many perfumes, makeup, moisturizers, shampoos, hair dyes, face and body cleansers, and shaving preparations do not require FDA approval.

Who regulates plant-based meat? ›

The U.S. Food and Drug Administration (FDA) regulates plant-based meat alternatives, such as Impossible Foods. Cell-based meats—cell-cultured products “derived from the cell lines of livestock and poultry”—are jointly regulated by FDA and USDA.

Does FDA regulate fruits and vegetables? ›

Foods regulated by the Food and Drug Administration (FDA) generally include: Food products (other than meat, poultry, and egg products as regulated by the United States Department of Agriculture), such as: Dairy, produce, spices, nuts, cereals, flour, legumes, fruit & vegetable juices, vegetarian entrees, etc.

Top Articles
Latest Posts
Article information

Author: Stevie Stamm

Last Updated:

Views: 5706

Rating: 5 / 5 (80 voted)

Reviews: 87% of readers found this page helpful

Author information

Name: Stevie Stamm

Birthday: 1996-06-22

Address: Apt. 419 4200 Sipes Estate, East Delmerview, WY 05617

Phone: +342332224300

Job: Future Advertising Analyst

Hobby: Leather crafting, Puzzles, Leather crafting, scrapbook, Urban exploration, Cabaret, Skateboarding

Introduction: My name is Stevie Stamm, I am a colorful, sparkling, splendid, vast, open, hilarious, tender person who loves writing and wants to share my knowledge and understanding with you.