• 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 4.75% p.a. to 5.75% p.a. for a deposit of less than Rs.2 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.2 crore:

    Tenure Interest Rate (p.a.) *
    181 days to 270 days 4.75%
    271 days to less than one year 5.00%
    1 year to less than 2 years 5.50%
    2 years to less than 3 years 5.50%
    3 years to less than 5 years 5.65%
    5 years and above 5.75%

    *These interest rates are effective from 1 June 2021 and are liable to change as per the bank's policies

    FAQs on KVB Reinvestment Plans

    1. What is the maximum amount that can be invested in KVB Reinvestment Plans?

      KVB Reinvestment Plans does not have a maximum limit on investment.

    2. Is TDS applicable for KVB Reinvestment Plans?

      Yes, TDS on the reinvestment of interest is applicable in the case of KVB Reinvestment Plans.

    3. 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.

    4. 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.

    5. 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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