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. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  2. Monetary Policy

    The actions of a central bank, currency board or other regulatory ...
  3. Open Market Operations - OMO

    The buying and selling of government securities in the open market ...
  4. Money Supply

    The entire stock of currency and other liquid instruments in ...
  5. Drawdown

    The peak-to-trough decline during a specific record period of ...
  6. Bank Of Canada - BOC

    The central bank of Canada, that came into existence after the ...
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. Even though inflation currently seems tame, it's still the worst enemy of retirees. Here are some tips to reduce its impact.
    Professionals

    Tips For Managing Inflation In Retirement

    Even though inflation currently seems tame, it's still the worst enemy of retirees. Here are some tips to reduce its impact.
  3. Retirement

    Know The Cost of Living Where You Plan To Retire

    When considering where to live after retiring, it's important to keep in mind the type of taxes that would have to be paid at each retirement location.
  4. Retirement

    5 Crucial Tips For Your Retirement Income Planning

    Here are strategies to ensure that your assets have staying power, and that your wealth-making years provide enough funds for your income-taking ones.
  5. Retiring successfully if you're a small business owner requires both an exit strategy and a good retirement plan. Here's how to get started.
    Retirement

    Retire? Me? Smart Strategies For Business Owners

    Retiring successfully if you're a small business owner requires both an exit strategy and a good retirement plan. Here's how to get started.
  6. Retirement

    Freelancers Don't Have To Retire Broke

    Many freelancers worry, with good reason, that their retirement prospects are financially insecure. Plan early and you can minimize your fretting.
  7. Retirement

    Teachers: Get Schooled On Your Retirement Strategies

    If you're a teacher, you have unique circumstances when it comes to planning for a successful retirement. It's important to start informing yourself now.
  8. Follow these 5 strategies and set yourself up for a sane and comfortable retirement. Starting early is best, but it's never too late to help your future.
    Retirement

    The 5 Top Rules Of Thumb For Retirement Savings

    Follow these 5 strategies and set yourself up for a sane and comfortable retirement. Starting early is best, but it's never too late to help your future.
  9. Economics

    What's the highest year-over-year inflation rate in the history of the U.S.?

    Learn about periods with the highest inflation in U.S. history and the mandated role of the U.S. Federal Reserve in controlling inflation.
  10. Investing

    The Increasing Importance Of The Reserve Bank of India

    With the Indian economy accounting for a great share of the global economy, the RBI is poised to become one of the world’s leading central banks.

You May Also Like

Hot Definitions
  1. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  3. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  4. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  5. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  6. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
Trading Center