Is there any minimum tenure for booking a reinvestment fixed deposit?

No, there is typically no minimum tenure requirement for booking a reinvestment fixed deposit (FD) across most banks and non-banking financial companies (NBFCs). However, it is important to understand some key points regarding reinvestment FDs:

1. A reinvestment FD automatically renews the principal + interest earned at maturity for the same tenure as the original FD.
2. The minimum tenure is usually not specified for reinvestment FDs by most financial institutions. An investor can book a reinvestment deposit for short tenures, like six months.
3. Generally, the tenure and interest rate of the original FD is applicable to all subsequent reinvestment deposits unless a specific maturity instruction is provided by the depositor.
4. Depending on the reinvested FD amount, financial institutions may prescribe a minimum tenure requirement to book a reinvestment FD.

The interest rates are typically higher for longer-term FDs. The best returns are offered on FDs booked for terms between 1 year to 5 years.