If you choose not to auto renew, your matured FD amount will be transferred to your linked savings account. You will then need to decide how to reinvest or use those funds. This can be a good option if you need liquidity or plan to invest in other instruments.
Yes, you can cancel the auto renewal option at any time before the FD matures. You will need to inform your bank about your decision, either through their online banking platform, by visiting a branch, or by contacting their customer service.
The interest rate for the renewed FD will be the rate applicable on the date of renewal for the chosen tenure. It may be different from the rate at the time of your original FD. It's important to check current rates and compare them with other available investment options.
Generally, auto renewal renews the FD for the same tenure and amount. If you wish to change the tenure or amount you need to visit nearest branch.
The interest earned on fixed deposits is taxable. The bank will deduct TDS (Tax Deducted at Source) if the interest income exceeds the threshold limit set by the government. Taxpayer should include FD interest income in his annual tax returns filing even for the FD that is auto renewed as and when the interest is paid or accrued as the case may be.
HDFC Bank do not charge any fees for auto renewing fixed deposits. However, it is advisable to check with your bank for any specific terms and conditions or charges that may apply.