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. Money Supply

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

    The peak-to-trough decline during a specific record period of ...
  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. How does the law of supply and demand affect monetary policy in the United States?

    The law of supply and demand affects monetary policy in the United States through the adjustment of interest rates. Interest ... Read Full Answer >>
  2. What nations other than the U.S. have risk-free interest rates?

    Countries other than the United States that have risk-free interest rates are Canada, the European Union, Japan, the United ... Read Full Answer >>
  3. How does a government raise the economy's money supply?

    The government can raises the money supply by loosening money or the reserve requirement for banks. Both actions work to ... Read Full Answer >>
  4. How does LIBOR compare to the Federal Reserve rate as an accurate indicator?

    The question sometimes arises between analysts as to which rate is more accurately predictive of future interest rates and ... Read Full Answer >>
  5. How do interest rate changes affect the profitability of the banking sector?

    The banking sector's profitability increases with interest rate hikes. Institutions in the banking sector such as retail ... Read Full Answer >>
  6. What are the most important interest rates?

    The most important interest rates in the economy are the Federal funds rate and the discount rate. The Federal funds rate ... Read Full Answer >>
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

    Real Estate Advice for Recent Retirees

    What retirees need to consider when it come to making real estate decisions.
  3. Professionals

    Top Retirement Planning Tips for Singles

    Single clients often face an uphill battle when it comes to retirement planning. Here are some tips to get them on the right path.
  4. Retirement

    Top 10 Stocks for Retirement Portfolios

    Certain stocks are popular retirement portfolio options, but not all are as impressive as they used to be. Time to reevaluate?
  5. Economics

    A Risky Maneuver To Jumpstart Japan's Economy

    Japan's government and the Bank of Japan are buying large amounts of government bonds in an effort to spark economic activity, but there are great risks.
  6. Professionals

    Top Tips for Retiring in a Bear Market

    What you need to know if you have the unfortunate timing of retiring in a bear market.
  7. Retirement

    Retirement: The Journey Of 1000 Miles

    Substantial time should be set aside to fully outline one's vision for retirement and the specific steps that must be taken to realize it.
  8. Professionals

    Your Clients and the Changing Retirement Landscape

    For many, retirement might not be the full stoppage of work and living a life of leisure but rather one of slowly phasing out of the workforce.
  9. Bonds & Fixed Income

    Understanding Negative Rates Of Europe's Central Banks

    We are currently seeing negative central bank deposit rates and government and corporate bonds with negative yields, but there are investors buying into these securities. Why?
  10. Economics

    Benefits From A Tango Of China-US Trade and Debt

    China has been accumulating US debt for many decades. Here's why it continues to do so, and the risks and benefits of this for both the US and China.

You May Also Like

Hot Definitions
  1. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  2. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  3. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
  4. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
  5. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
Trading Center