Contents.
What is deposit prolongation?
Deposit prolongation is a mechanism for automatically extending the term of a deposit for the same period for which it was originally opened. This process can be compared to the automatic renewal of a subscription, when the service is extended without the need to re-register. The client does not have to choose a profitable deposit program again, collect documents to confirm the origin of funds if the deposit amount is large enough.
Benefits of prolongation
The main advantage of deposit prolongation is that it saves time and effort for the depositor. There is no need to visit a banking institution or re-execute documents. The funds continue to work, generating income. Additional advantages are:
- maintaining favorable deposit terms;
- the possibility of obtaining an increased interest rate;
- automatic capitalization of interest, if provided for by the terms of the deposit.
Some banks offer special bonus programs for customers who choose to extend their deposit, which makes the option even more attractive.
What types of prolongation are there?
There are two main types of prolongation: automatic and manual. Each of them has its own features and advantages. Automatic prolongation takes place without the depositor's intervention, while manual prolongation is initiated by the depositor.
Automatic deposit extension is the most popular option among bank customers. It works on a “set it and forget it” basis, which greatly simplifies financial management. The process is as follows:
- the deposit agreement expires;
- if the depositor does not apply to the bank with the intention to close the deposit, it is automatically extended;
- the new interest rate is set in accordance with the bank's current terms and conditions;
- the term of the deposit remains the same as it was.
The intention to close the deposit can be notified in person by contacting a branch of the financial institution or by calling the contact center. Globus Bank customers can also use the mobile application and manually cancel the automatic deposit extension.
The terms of auto-renewal differ depending on the bank, so it is recommended to carefully study the agreement before signing it.
How to prolong a deposit with GlobusPlus
For Globus Plus customers using the GlobusPlus mobile application, auto-renewal of deposits is as simple as possible. To activate this function, you just need to follow a few simple steps in the application interface:
- log in to your GlobusPlus account;
- go to the “Deposits” section;
- select the appropriate deposit;
- click “Continue automatically”;
- confirm your choice.
After that, the deposit will be automatically renewed at the end of each term. This ensures continuity of investment and stable passive income.
Terms and interest rates for prolongation
Deposit prolongation can occur with a change in conditions. As a rule, banks set a new rate that corresponds to current market conditions. This can affect the profitability of the deposit both positively and negatively. When extending the agreement, consider:
- change in the deposit amount (possibility of adding accrued interest to the principal amount);
- preservation of the terms of replenishment and partial withdrawal of funds;
- frequency of interest payments.
Deposit prolongation is an effective tool for long-term savings management. It allows you to receive a stable passive income without additional efforts, turning your investments into a reliable source of income so that you are always in plus 🧡
