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.
A reinvestment plan can be opened with Indian Bank by:
|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.|
|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.|
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.
The principal amount invested, plus all interest earned on quarterly reinvestments, compounded quarterly, will be payable to you on the date of maturity.
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:
It’s important to note that deposits are accepted for periods in multiples of 3 months.
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.
Deposit amounts up to Rs.1,00,000 are covered from risk by the Deposit Insurance & Credit Guarantee Corporation.
*All amounts, tenures, repayment requirements, time frames, interest rates, charges, fees, ceilings, requirements, criteria, exclusions, terms and conditions mentioned above are as of December, 2015. 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.
Useful Information on Indian Bank Fixed Deposit