Indian Bank Reinvestment Plan
The Indian Bank Reinvestment Plan is a term deposit that reinvests the interest you earn every quarter, compounding your returns instead of paying them out as cash. It offers automatic renewal, a loan facility, and nomination, for tenures from 6 months to 10 years. Deposits start at Rs.1,000, in multiples of Rs.100 thereafter.
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.
Eligibility Criteria for Applying for Indian Bank Reinvestment Plan
A reinvestment plan can be opened with Indian Bank by:
1. A resident individual in his / her own name.
2. A Minor resident individual, represented by a parent or legal guardian.
3. Two persons, but with one of these clauses:
- Joint clause,
- or Either or Survivor clause,
- or Former or Survivor clause.
4. More than two persons, repayable either:
- Jointly, or
- Anyone more among them, or survivors among them.
5. A firm or company in its own name.
6. An association in its own name.
Features of Indian Bank Reinvestment Plan
Account Type | Joint/Single |
Amount | Minimum: Rs.1,000, and in multiples of Rs.100 thereafter. Maximum: No maximum 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 | Minimum: 6 months. Maximum: 10 years. |
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 is charged at a rate 2% higher than the interest rate applicable to the deposit. |
Nomination | The nomination facility has been made available by Indian Bank for this account. |
Senior Citizen Interest Rate | Senior citizens are eligible for an additional 0.50% p.a. over the applicable card rate, within the aggregate deposit limits Indian Bank prescribes for senior citizen rates. |
Premature Withdrawal | Premature withdrawal is permitted at the bank's discretion, subject to a penalty, with interest paid at the rate applicable for the period the deposit has actually run. |
Note: The interest rates are effective from 4 August 2026.
*All amounts, tenures, repayment requirements, time frames, interest rates, charges, fees, ceilings, requirements, criteria, exclusions, terms and conditions mentioned above are as of August 2026.
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.
Summary
The Indian Bank Reinvestment Plan is a term deposit that compounds interest quarterly and reinvests it until maturity, making it a low-effort way to grow long-term savings. It suits individuals, joint holders, minors, and entities who want automatic renewal, nomination and a loan facility built in. Check the eligibility and features above, then visit your nearest Indian Bank branch or the official website to open one.
FAQs on Indian Bank Reinvestment Plan
1.What is the Indian Bank Reinvestment Plan?
The Indian Bank Reinvestment Plan is a term deposit that reinvests the interest earned every quarter back into the deposit instead of paying it out, so your money compounds until maturity. It comes with automatic renewal and nomination facilities. This makes it suited to savers who want their returns to grow steadily over time.
2.Who is eligible to open an Indian Bank Reinvestment Plan account?
A resident individual, a minor through a guardian, two or more persons jointly, or a firm, company or association can open an Indian Bank Reinvestment Plan account. Joint holders can choose the Joint, Either or Survivor, or Former or Survivor clause. This flexibility makes the plan open to most types of depositors.
3.What is the minimum amount to open an Indian Bank Reinvestment Plan?
The minimum amount to open an Indian Bank Reinvestment Plan is Rs.1,000, and thereafter deposits can be made in multiples of Rs.100. There is no maximum limit on how much you can invest in the plan.
4. What is the tenure of the Indian Bank Reinvestment Plan?
The Indian Bank Reinvestment Plan can be opened for a minimum of 6 months and a maximum of 10 years, in multiples of 3 months. Indian Bank may extend this period in special cases, such as a court order or a minor's interest.
5.When do I receive the principal and interest under the Indian Bank Reinvestment Plan?
Under the Indian Bank Reinvestment Plan, the principal amount and all interest earned through quarterly compounding are paid together on the date of maturity. Nothing is paid out to you before maturity unless you close the deposit early.
6.Can I take a loan against my Indian Bank Reinvestment Plan deposit?
Yes, Indian Bank allows a loan of up to 90% of the deposit balance against an Indian Bank Reinvestment Plan. The loan is charged at a rate linked to the interest rate applicable on the deposit.
7.Can I withdraw my Indian Bank Reinvestment Plan before maturity?
Yes, Indian Bank permits premature withdrawal of an Indian Bank Reinvestment Plan deposit at its discretion, subject to a penalty. The interest paid in such cases is the rate applicable for the period the deposit actually ran, not the original contracted rate.
8. Is my Indian Bank Reinvestment Plan transferable?
An Indian Bank Reinvestment Plan receipt cannot be transferred between persons by endorsement. However, the account itself can be transferred between Indian Bank branches in different cities if needed.
9.Is my deposit under the Indian Bank Reinvestment Plan insured?
Yes, deposits under the Indian Bank Reinvestment Plan are covered up to Rs.5,00,000 per depositor by the Deposit Insurance and Credit Guarantee Corporation (DICGC). This cover applies per depositor, per bank, held in the same right and capacity.
Prerna Surana is a Finance Content Writer with over three years of experience at Bank Bazaar. She specialises in creating insightful content on Credit Cards, Debit Cards, Taxes, and other BFSI products. Beyond finance, Prerna also writes about non-financial utility products such as Aadhar Card, Voter ID, and Government Certificates.
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