KVB Reinvestment Plans
KVB Reinvestment Plans is an FD that facilitates long-term planning for specific goals related to milestones in your children's lives, such as their education or a wedding. It is also called Tirumagal Tirumana Thittam (TTT).
The investment tenure ranges from six months to 20 years. The interest rate ranges from 4.00% p.a. to 7.60% p.a. for a deposit of less than Rs.3 crore.
Features of KVB Reinvestment Plans
KVB Reinvestment Plans have the following features:
- Interest is re-invested along with the principal amount
- Loan against deposit can be easily availed
- Premature closure is allowed
- Nomination facility is available
- Minimum amount is Rs.100
- Maximum investment period for a minor is 20 years while for a major it is 10 years
Eligibility Criteria for KVB Reinvestment Plans
The following entities are eligible to open a KVB Reinvestment Plan:
- Indian resident
- Individuals
- Hindu Undivided Family (HUF)
- Companies
- Partnership firms
- Associations
- Trusts
Interest Rate for KVB Reinvestment Plans
The interest rate for KVB Reinvestment Plans is as given below for deposits less than Rs.3 crore:
Tenure | Interest rate |
7 days to 14 days | 4.00% p.a. |
15 days to 30 days | 4.00% p.a. |
31 days to 45 days | 5.25% p.a. |
46 days to 90 days | 5.25% p.a. |
91 days to 120 days | 6.00% p.a. |
121 days to 180 days | 6.00% p.a. |
181 days to 270 days | 6.25% p.a. |
271 days to 332 days | 6.50% p.a. |
333 days | 7.40% p.a. |
334 days to less than 1 year | 6.50% p.a. |
1 year to 443 days | 7.00% p.a. |
444 days | 7.50% p.a. |
445 days up to 2 years | 7.00% p.a. |
Above 2 years up to 759 days | 7.00% p.a. |
760 days special deposit | 7.60% p.a. |
761 days up to 3 years | 7.00% p.a. |
Above 3 years up to 5 years | 7.00% p.a. |
Above 5 years up to 6 years | 6.25% p.a. |
Above 6 years | 6.25% p.a. |
For KVB - Tax Shield Deposits | 7.00% p.a. |
Rainbow Deposits (RBFD) | 5.25% p.a. |
KVB Green Deposits Scheme (2345 days) | 6.25% p.a. |
*Note: These interest rates are effective w.e.f. 23 January 2025.
FAQs on KVB Reinvestment Plans
- What is the maximum amount that can be invested in KVB Reinvestment Plans?
KVB Reinvestment Plans does not have a maximum limit on investment.
- How to apply for the KVB Reinvestment Plans?
You can apply for the KVB Reinvestment Plans either on the bank's official website or by visiting the bank's nearest branch.
- Is TDS applicable for KVB Reinvestment Plans?
Yes, TDS on the reinvestment of interest is applicable in the case of KVB Reinvestment Plans.
- Is there a pre-closure penalty for KVB Reinvestment Plans?
Yes, there is a pre-closure penalty of 1% from the applicable rate of interest for deposits of less than Rs.2 crore. For deposits above Rs.2 crore, the pre-closure penalty will be disclosed by the bank.
- Is there an additional rate of interest for senior citizens for KVB Reinvestment Plan?
No, there is no additional rate of interest offered to senior citizens under the KVB Reinvestment Plan.
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