Rollover term deposits is a facility which relieves not only the general public but also Banks from routine, unproductive activities. Earlier, people had to visit the branches when their term deposits used to mature even for renewal.
Lets consider a scenario. Say , Mr Rahul had availed fixed deposit facility from a bank and it is going to be matured tomorrow. He is not in need of the money right now and plans to reinvest the matured amount in another fixed deposit. He is out of station at would be returning to his home after a fortnight. If it is a regular term deposit, then his deposit will either lay idle or earn only the interest rate of savings bank account.
However, if the product in which he has deposited his amount is “roll over term deposit”, then he need not visit the branch, his matured term deposit will automatically be reinvested for the same term at the current applicable interest rates. This is done automatically and saves time and manpower of both the customer and the Bank. Only if the amount is not to be reinvested or if the term needs to be changed, the customer will have to visit the Branch.
Like internet banking, rollover term deposits mean we don’t have to go to the bank all the time. Which is a blessing, because none of us want to wait in line all day. It works for the bank, too, though, because they save money in customer face-to-face time, which they can reinvest in other areas where customers need help - like internet banking security.
I’d much rather be at home than in a line at the bank. For doing more banking in your pajamas - you can read the article about net banking on this website. It’s all very attractive to me, anyway
One doesn’t have to visit the bank branch every time one’s term deposits mature.What a relief. Isn’t it ? Besides honoring one’s time, roll over also appreciates one’s personal information by just not letting one’s investments lay aside without generating any revenue.A win-win for both the bank and the user!