Some days back my account balance automatically converted to FD (Fixed Deposit). I got a SMS at night and when I checked my savings account it was showing balance as just Rs 1300 which should be above 1.7k.
I was confused, rather shocked I should say. Thoughts of all sorts started coming in my mind. So I called my friend who works in SBI and told him about this. He was like god for me that day when he told me that the balance sometimes auto-sweeps and converts to FD whenever it goes past a certain amount. He also said that it’s the bank’s responsibility to inform the account holder about this. But in my case, I was completely unaware of this, so failed to understand what actually happened with my account.
The balance swapped to FD gets an interest rate of 9.25 percent. My Rs 1,68k would give me 1.82 after a year.
I wanted to break FD but didn’t had the time to go to bank and do this manually. So the figured out a great idea.
The FD amount can be taken out through ATM. Though, it won’t show in the ATM receipt but MOD balance would show the amount taken out of the FD.
So if similar things happened to you then grab your ATM card and pull out your money by breaking FD in midterm.
Such instances occur more with users having Internet banking or mobile banking service.