Reinvestment Deposits:
In a reinvestment deposit, the interest accrued to your deposit at the end of each quarter is invested along with the principal. The tenure of your deposit must be a minimum of 6 months. At the end of the quarter, the interest and the principal are both rolled over, and the interest is calculated on the total sum. Income tax is deducted at source.
Automatic Rollover:
As a Fixed Deposit holder, you can avail of the facility for automatic rollovers on maturity (for both the principal and interest). You can select this option in the Account Opening Document (AOD). The options available are:
- Rollover only Principal:
Only the principal amount will be rolled over. The interest will be either credited to your designated account or paid out.
- Rollover Principal and Interest accrued in Reinvestment Deposit:
This will rollover both the deposit and the interest accrued for the same tenure at the interest rate applicable on the maturity date.
On or before the maturity date, you can make the following changes in the rollover instructions of the deposit:
- Change in tenure
- Change in maturity instructions
- Change in payment instructions
- Change in principal (only reduced amount)
- Change rollover of Principal to rollover of Principal + Interest, or vice versa.
|
