Call Redeposit

Call redeposit refers to the process of re-depositing funds that have been released from a call deposit or from a lien (collateral hold) back into an active deposit account with a bank or NBFC. This situation commonly arises when a credit card issued against a fixed deposit or call deposit collateral is closed — the lien on the deposit is released, freeing the funds. The cardholder or the deposit holder then has the option to either withdraw those funds or redeposit them into a new call deposit account to continue earning interest. In some cases, card issuers may automatically redeposit released funds into a new call deposit account unless instructed otherwise by the deposit holder. The interest rate on a call redeposit will be the prevailing rate at the time of redeposit, which may differ from the original deposit rate if interest rates have changed. Understanding the call redeposit process is important for deposit holders who want to maintain their interest-earning savings while managing their credit card relationship with the issuer.