Bank fixed automatic rollover means that when a customer opens a fixed deposit account with a bank, he signs an agreement with the bank to automatically transfer the principal and interest to the next fixed deposit after the maturity of the fixed deposit. This service allows customers to save the trouble of going back to the bank to make a rollover after each fixed maturity.
The precautions for regular automatic rollover by banks are as follows:
1.Agree on the period of automatic rollover: When signing an automatic rollover agreement, you can agree on the period of rollover, such as one year, two years, three years, etc. If you wish to withdraw your fixed deposit at any time after maturity, you can choose not to agree on the automatic rollover period.
2.Impact of interest rate changes: The interest rate of bank fixed deposits is generally set according to the term of the deposit, and if the interest rate changes during the deposit period, the bank will automatically calculate the interest according to the new interest rate. However, if the interest rate of the new fixed deposit is lower than the interest rate of the previous period after the automatic rollover, the customer's interest income will be affected.
3.Early withdrawal: If you need to withdraw your fixed deposit in advance, you need to go to the bank counter or go through online banking, mobile banking and other channels to go through the early withdrawal procedures. It should be noted that early withdrawal will affect the interest income, as the interest on fixed deposits is calculated according to the tenor.
4.Pay attention to the security of deposits: When choosing a bank for regular automatic rollover, you need to pay attention to choosing a bank with good reputation and excellent service to ensure the safety of deposits and the stability of returns.
5.Understand the pros and cons of automatic rollover: Automatic rollover can save customers the trouble of rollover, but if customers do not withdraw or continue to roll over their fixed deposit in time after maturity, they will lose some interest income. Therefore, you need to choose whether to use the automatic rollover service according to your needs and circumstances.
In short, the bank's regular automatic rollover is a convenient service that allows customers to save the trouble of handling the rollover. However, when using this service, you need to pay attention to the term of automatic rollover, the impact of interest rate changes, the problem of early withdrawal, choosing a reputable bank, and understanding the pros and cons of automatic rollover, etc., to ensure your interest income and the safety of funds. If you find this article helpful, you may wish to give some support, such as tips, followers, favorites, likes, and comments.