Fixed deposits are safe yet interesting financial instruments where your investments fetch higher returns only when you opt for an extended lock-in period. However, as with any other investment, maturity comes across as a tempting point where individuals prefer withdrawing the money for attending to financial calls. This is where auto-renewal facility, offered by some of the more credible financial institutions comes into the mix, similar to that supported by FDs offered by PNB Housing Finance.
How Auto-Renewal Guarantees Higher Interest Rates?
Financial organizations like the PNB Housing Finance offer decent FD interest rates. However, unless you opt for extended tenure and lock-in periods, you aren’t expected to reap the diverse benefits of an otherwise productive investment scheme. This is where auto-renewal comes into the mix as it ensures that FDs are re-fixed upon maturity without sending intimation to the investor.
In simpler words, the auto-renewal facility offered by the PNB Housing Finance FD aims at saving your investment from yourself, by reinvesting upon maturity. In case you are still not convinced, here are some of the best reasons why auto-renewal is advised for amplifying profits in the long-run:
- Better Returns
A majority of firms, including PNB Housing Finance feature FDs that offer better returns on auto-renewals. This means you end up getting a slightly higher interest rate per annum, in case you opt for the auto maturity feature where the existing sum gets re-fixed automatically, once the investment matures. Lenders offer this feature as they get extended financial support with individuals putting faith in their respective FD accounts, courtesy of long-term investments.
- Customized Investments
PNB Housing Finance FD allows you to align your existing goals upon maturity. The auto-renewal flexibility ensures that you need not persist with the same FD interest rates, in case your financial requirements change after a certain point in time.
- Flexible Options to Invest
Auto-renewal need not be automatic and you can select the preferred mode of payment based on your preferences. FD schemes supported by PNB Housing Finance ensure that you can make the most of multi-deposit facilities and cheque-based payments, upon maturity. Not just that, investing via debit cards is also an option. Moreover, auto-renewal also offers the option to either reinvest only the principal amount while using up the accrued interest or to re-fix the entire corpus, as per preferences.
- Helps with Tax Savings
A majority of fixed deposit schemes offer tax-saving benefits only after the 5-year period. The auto-renewal facility, therefore, takes you closer to realizing this benefit by cutting out the confusion and clutter associated with long-term investments. Besides, you can withdraw any time after the funds mature by deactivating the auto-renewal facility.
Auto-renewal facility on FD, as offered by PNB Housing Finance works in tandem with the competitive FD interest rates, thereby making it easier for a standard investor to procure higher returns, in the long run!