Does a Fixed Deposit Number Change Upon Its Renewal?

The answer to this question is often yes, as the number associated with a Fixed Deposit (FD) typically changes upon renewal. When a FD is renewed, it is usually considered a new deposit, leading to the creation of a new account and a new FD number. This is done to keep records and ensure accurate tracking of individual deposits. However, it is advisable to confirm this with your specific bank, as practices can vary.

Online Renewal and Unique FD Numbers

When renewing a fixed deposit through online channels, the traditional FD number will change. This is because the bank creates a new account for the renewed deposit. The new FD number is unique and contains specific details such as the amount, interest rate, duration, and start and end dates. These details are immutable and cannot be overwritten. This ensures that if authorities ever require information about the FD, the data will be accurate.

Variations in Practices from Bank to Bank

While it is common for FD numbers to change upon renewal, it is essential to note that bank practices can vary. Some banks may allow for the principal amount to be rounded off for ease of reference, but any additional digits or notations, such as 'renewed for X years' or 'serial number YYY,' are usually added to the old receipt to keep a record of the renewal.

Options for FD Renewal

When a fixed deposit matures, there are a few options available to the depositor:

Auto-Renewal: The deposit can be rolled over automatically at the prevailing interest rate on the day of auto-renewal. In this case, the FD number usually remains the same across most banks.

Manual Renewal: If the depositor decides to renew the deposit, they can choose a different amount or a different tenure. In such cases, the renewed deposit is treated as a fresh FD, leading to a change in the FD number.

Practical Scenarios

Upon renewal, if you take a new printed FD receipt from the bank, the FDR (Fixed Deposit Receipt) serial number will change. The account of the renewed FD will still remain the same. Banks follow different practices, and in some cases, they may replace the old receipts with new ones having a different serial number, while closing the old receipt and issuing a new one.

Banks that do auto-renewal for the matured amount typically do not change the deposit number. However, they may print on the back of the receipt a note indicating 'renewed for X years' and provide a serial number, thus keeping a record in their register.

Key Takeaways

1. A fixed deposit number typically changes when the deposit is renewed, making it a new FD and creating a new account.

2. Online renewal will definitely result in a change in the FD number, as the details remain unique and immutable.

3. Practices across banks vary, so it is crucial to check with your specific bank for accurate information.

4. Upon renewal, auto-renewal usually keeps the FD number the same, while manual renewal will result in a new FD number.

5. Banks that issue new printed FD receipts upon renewal will change the FDR serial number, but the account will still remain the same.

Conclusion

The renewal of a fixed deposit can be a straightforward process, but it's important to understand how the FD number changes and how it can affect your record-keeping and future references. Keeping in touch with your bank or checking their official website can provide clarity on their specific practices.