Banks should notify people about deposit expiration
The Bank of Russia recommends notifying depositors about the approaching end of the deposit term, as well as explaining to them how they can further dispose of their savings. This follows from the Bank of Russia’s information letter.
With automatic prolongation of the deposit, the interest rate can be reduced up to 0.001% p.a. Sometimes the funds are just transferred to a current account with no interest accrual. The Bank of Russia receives appeals from depositors, especially the elderly, that they are not always informed about the end of the deposit period and the conditions of deposit prolongation.
According to the regulator, banks should inform customers about the possibilities to extend the deposit on the same or new terms or return the money with interest, as well as notify them about the conditions under which the funds will remain in the bank if depositors do not take any action. This should help people place their savings with maximum benefit.