When making any contribution to the bank customer signs the corresponding contract.In it, in addition to the deposit amount, be sure to specify the basic conditions of deposit: deposit term, the possibility of early termination of the contract or its extension at the end of the deposit term, the possibility of replenishment.Each of these nuances, of course, extremely important.However, the text of the treaty itself is sometimes so specific that the man in the street did not understand what was going on in some of his village.
For example, not all of the bank's customers are aware that this extension of the contract, and the automatic is different from that carried out by signing an additional agreement.But the way of prolongation of the agreement is very important for the client.If the contract extension is automatic, which means that at the end of the contract period the customer should not pay to the bank to enter into another - the bank itself will revise the deposit for the same period.That is, the customer comes just in case he needed to withdraw money or make a change in the contract.When the automatic renewal of the contract is not provided, the money at the end of fall in the current account of the client, and they cease to accrue.That is a contributor, not knowing that a prolongation of the contract, and not realizing that in the contract, it is not available, continue to keep money in the bank does not earn interest.
There are other cases.For example, when a customer is going to withdraw money from the account and is aware of the fact that the term of deposit ended, but the bank comes after a week and learns that he can not raise the money on deposit because the contract has lasted and now it needs to terminate.This, of course, the automatic extension of the deposit specified in the contract.Money is he his ultimately take, but he will have to make an extra effort to do: to write statements to come again, and so on. D. But a careful study of the agreement would help in both cases to save time and nerves.
notion of extending the term of the agreement also applies to lending and other activities of the Bank.In particular, that is the extension of the agreement, known to many borrowers who surprised the recent financial crisis.When people credit score and after a while realized that they could not repay them, they began to look for possible ways out of the situation.In addition to the sale of collateral, which is offered in large banks on mortgage and other secured loans, one of the outputs were just an extension of the credit agreement in order to minimize the monthly payment.In this situation, neither of which automatic renewal, of course, the speech was not.To stretch the repayment period, the client should contact the bank itself, to write a statement and make sure that a new payment would afford him.Only in this case he was able to sign an additional agreement and reduce payments.
If you consider that such a prolongation of the contract, but without reference to the loans, deposits, and banks in general, the term literally means "renewal."That is to prolong the contract - hence delay the end date of its implementation, of course, by mutual consent of the parties.
