What is difference between Refund and Reinvest option while booking an FD
While booking an FD, you get a choice of maturity instructions as below
Refund: With this option customers can get back their principal + interest back to their source account
Reinvest: With this option customers can reinvest back in the same tenure with the bank at the current applicable rates.
If you choose 90,000 and tenure 1 year for your first FD then you can only choose a ction on maturity as Refund.