Redeposit

AAA

DEFINITION of 'Redeposit'

1. The requirement for a person to reinvest a certain amount of money into their retirement fund after he or she previously requested and obtained a return on the deposits made to the fund during a set time period, in order to receive a certain payout from the fund upon retirement.

2. A cash management policy used by the Bank of Canada, where money is transferred from the central bank to the chartered banks.

INVESTOPEDIA EXPLAINS 'Redeposit'

1. If an employee is eligible at anytime to request a refund on the contributions made to a retirement fund, they will have to redeposit back into the fund at some point to retain the level of retirement pay they're due to receive before receiving the refund and to maintain the age at which they are eligible to retire. This repayment is referred to as a redeposit service.

2. By transferring money to the chartered banks, there is an injection of funds into the money supply. The purpose of increasing the money supply by a redeposit is to prevent interest rates from climbing too high.

RELATED TERMS
  1. Drawdown

    The peak-to-trough decline during a specific record period of ...
  2. Money Supply

    The entire stock of currency and other liquid instruments in ...
  3. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  4. Open Market Operations - OMO

    The buying and selling of government securities in the open market ...
  5. Bank Of Canada - BOC

    The central bank of Canada, that came into existence after the ...
  6. Monetary Policy

    The actions of a central bank, currency board or other regulatory ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Personal Finance

    How The U.S. Government Formulates Monetary Policy

    Learn about the tools the Fed uses to influence interest rates and general economic conditions.
  2. Professionals

    Retirement Planning Essentials for Your Clients

    You may have heard these retirement planning tips before, but has your client actually put them into action yet?
  3. Retirement

    Be An Expat The Easy Way: Relocation Services!

    A good relocation service can greatly ease the stress of moving abroad. Here's what to make sure it does – and what you need to do to prepare the way.
  4. Professionals

    Is This the Best Advice You Can Give Your Clients?

    For all the specialized advice you could give your financial advisory clients, this one, simple tip beats them all.
  5. Retirement

    Save Now To Retire Earlier - Or Just Work Longer?

    Working longer might seem a solution, but job and health risks make it an unreliable option. Compound interest, though, means savings always make money.
  6. Trading Strategies

    Consider The Season On Trading Day

    Calendar and clock bias, better known as seasonality, is a frequently misunderstood concept that exerts a huge influence on the ticker tape.
  7. Professionals

    How Much Should Retirees Withdraw From Accounts?

    Figuring out how much to withdraw from a retirement account every year can be a tough task. Here's help for both the saver and the advisor.
  8. Retirement

    How Cheap Is Retiring In Mexico?

    A comfortable life in Mexico can be remarkably affordable. Here's what you can expect to pay.
  9. Professionals

    Planning for Healthcare Costs in Retirement

    Healthcare often is the highest cost during retirement. Here's how to plan for and possibly buck that trend.
  10. Retirement

    Read This Before You Retire In The Philippines

    The Philippines has a warm climate, a low cost of living and plenty of people who speak English. What to do next if you think you want to retire there.

You May Also Like

Hot Definitions
  1. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  2. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  3. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  4. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  5. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  6. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
Trading Center