Indian Bank Reinvestment Plan
One of the easiest ways to watch your money grow is through a solid reinvestment plan. The Indian Bank Reinvestment Plan is among the best of its kind in the market today, with quarterly compounding interest and automatic renewal facilities.
This is a term deposit which reinvests all earned dividends, capital gains, and interest back into buying units or shares, rather than paying out in cash.
Also, Check - Fixed Deposit Rate
Eligibility Criteria for Applying for Indian Bank Reinvestment Plan
A reinvestment plan can be opened with Indian Bank by:
- A resident individual in his / her own name.
- A Minor resident individual, represented by a parent or legal guardian.
- Two persons, but with one of these clauses:
- Joint clause, or
- Either or Survivor clause, or
- Former or Survivor clause.
- More than two persons, repayable either:
- Jointly, or
- Anyone more among them, or survivors among them.
- A firm or company in its own name.
- An association in its own name.
Features of Indian Bank Reinvestment Plan
Account Type | Joint/Single |
Amount |
|
Rate of Interest | Interest will be paid at the rates as applicable from time to time. Interest earned is reinvested quarterly. Principal investment and interest earned is paid on maturity. Interest is subject to TDS. |
Period |
|
TDS | Interest earned is subject to TDS. |
Loan against Indian Bank Reinvestment Plan | Loans can be disbursed against the deposit, subject to a maximum of 90% of the total deposit amount. Interest on the loan will be decided by the bank. |
Nomination | The nomination facility has been made available by Indian Bank for this account. |
*All amounts, tenures, repayment requirements, time frames, interest rates, charges, fees, ceilings, requirements, criteria, exclusions, terms and conditions mentioned above are as of June, 2023.
Indian Bank reserves the right to modify, replace, or add to or subtract from any of the above, in any way, at any time, and at its own discretion.
FAQs on Indian Bank Reinvestment Plan
- How will my investment and interest earned thereon be treated under this plan?
Once you invest in this plan, any interest you earn is reinvested on a quarterly basis in order to earn compound interest, and effectively give you a huge amount of investment growth.
- When will the interest and principal amount be paid to me? When will I realise the benefit and profit out of this investment?
The principal amount invested, plus all interest earned on quarterly reinvestments, compounded quarterly, will be payable to you on the date of maturity.
- What is the period of this reinvestment plan?
The minimum and maximum periods of investment under this plan are 6 months, and 120 months (10 years) respectively. Although, the maximum period can be extended in a few cases, like:
- Under a court order.
- When the interests of minors are to be protected.
- Government undertakings, corporate bodies, institutions, etc. can extend the period in order to meet their special needs like sinking funds, amortisation funds, etc.
It's important to note that deposits are accepted for periods in multiples of 3 months.
- Is my investment in the Indian Bank Reinvestment Plan transferrable?
The reinvestment plan receipts are not transferable between persons through endorsement. Reinvestment plan accounts can be transferred between branches, depending on the need for the same, and only if the branches are located in two different cities.
- Is there any deposit insurance applicable with this plan?
Deposit amounts up to Rs.1,00,000 are covered from risk by the Deposit Insurance & Credit Guarantee Corporation.
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