What happens when your FD matures with outstanding Overdraft ?
Hi all , so I had taken od facility on my sbi fd. The FD matures this December and I want the amount to my saving account rather than renewal as I am in need of money. So I have set the renewal option to "transfer principal to savings account" in yono.
But this year when i contacted branch to pre close and take the fd the branch manager convinced me to take OD instead. The money required is high and if I want to close this OD I will need to borrow money from somewhere else. ( But my FD has enough and extra)
So if I do not repay the OD fully before the FD maturity will the bank automatically take the remaining OD amount and pending interest and then pay me the rest of my FD ? Also will this settle or close my OD ? Or will my FD be locked in some stupid SBI loophole ?
I am pretty sure that branch manager will still convince me to renew my FD but I am in urgent need and this is my money !
So I am trying to do as much via app rather than contact branch (sbi is poor in this regard).
Any insight would be appreciated.