Money won’t grow in your mattress.
It will grow in a Fixed Deposit!
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    We found 112 Fixed Deposit

    Institution Name
    Deposit Amount Range
    Tenure Range
    Interest Rate
    Up to ₹25L
    1 Year to 5 Years
    7.49% - 8.19% Monthly compounding
    Response Time Within 30 minutes
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    Up to ₹25L
    1 Year to 5 Years
    7.75% - 8.5% Monthly compounding
    Response Time Within 30 minutes
    Features
    Highlights
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    Up to ₹1Cr
    7 Days to 20 Years
    5% - 8% Quarterly compounding
    Response Time Within 30 minutes
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    Up to ₹1Cr
    7 Days to 10 Years
    4% - 7.25% Quarterly compounding
    Response Time Within 30 minutes
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    Good to Know
    Up to ₹1Cr
    7 Days to 10 Years
    4.25% - 7.05% Monthly compounding
    Response Time Within 30 minutes
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    Good to Know
    Up to ₹1Cr
    15 Days to 20 Years
    4.25% - 7.15% Monthly compounding
    Response Time Within 30 minutes
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    Good to Know
    Up to ₹1Cr
    7 Days to 10 Years
    4% - 7% Monthly compounding
    Response Time Within 30 minutes
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    Highlights
    Documents
    Good to Know
    NRI - FD
    Up to ₹1Cr
    1 Year to 5 Years
    6.5% - 6.8% Monthly compounding
    Response Time Within 30 minutes
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    Documents
    Good to Know
    NRI - FD
    Up to ₹1Cr
    1 Year to 10 Years
    6% - 6.65% Monthly compounding
    Response Time Within 30 minutes
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    Highlights
    Documents
    Good to Know
    NRI - FD
    Up to ₹1Cr
    1 Year onwards
    6.25% - 6.5% Monthly compounding
    Response Time Within 30 minutes
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    Highlights
    Documents
    Good to Know
    Up to ₹1Cr
    7 Days to 10 Years
    4% - 7.30% Quarterly compounding
    Response Time Within 30 minutes
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    NRI - FD
    Up to ₹1Cr
    1 Year to 5 Years
    6.80% Quarterly compounding
    Response Time Within 30 minutes
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  • Fixed Deposit BYTES FROM OUR KITCHEN

    FD Overview

    What is Fixed Deposit?

    A fixed deposit (FD) or term deposit is a type of financial instrument offered by banks and it allows individuals to deposit sums of money for fixed periods of time, like 1 month, 6 months, 1 year, 5 years etc. In general, fixed deposit accounts offer a higher interest rates than savings accounts. Fixed deposits are regarded as safe investments and help people to grow their financial assets without exposing them to volatility and other risks associated with the financial market. Most of the banks offer fixed deposit accounts in India and the interest rates offered with these accounts depend on the tenure of deposit and other factors. The tenure offered with fixed deposits can range from 7 days to 10 years, whereas the interest rate offered can be as high as 9% per annum. Some of banks even offer tax saving fixed deposits that offer tax benefits to customers.

    Know about fixed deposit

    Features of Fixed Deposit Account

    • The main purpose of fixed deposit account is to enable the individuals to earn a higher rate of interest on their surplus funds (extra money).
    • The amount can be deposited only once. For further such deposits, separate accounts need to be opened.
    • The depositor is given a Fixed Deposit Receipt, which depositor has to produce at the time of maturity. The deposit can be renewed for a further period.
    • As per the Traditional scheme, the interest on the FD account is credited to the Savings account specified by the depositor on a monthly basis or on a quarterly basis. For the Reinvestment scheme, the interest is compounded to the principal amount on a quarterly basis.
    • Tax is deducted at source, from the interest on Fixed Deposits, as applicable, as per the Income Tax Act, 1961.

    Compound interest arises when interest is added to the principal so that from that moment on, the interest that has been added also itself earns interest. This addition of interest to the principal is called compounding.

    The following formula gives you the total amount one will get if compounding is done:-

    A=P(1+r/n)nt

    Where,
    A = Final Amount that will be received
    P = Principal Amount (i. e. initial investment)
    r = Annual nominal interest rate (as a decimal i. e. if interest is paid at 5. 5% pa, then it will be 0. 055) (it should not be in percentage)
    n = number of times the interest is compounded per year (i. e. for monthly compounding n will be 12, for half year compounding it will be 2 and for quarter it will be 4
    t = number of years

    1. Annual Compounding: In this case there is no compounding effect because the term is only one year, the same as the compounding frequency. Thus, all we have is simple interest (i. e. , the effective rate is equal to the nominal rate)

      A=P(1+r/n)nt

    2. Monthly Compounding: In this case there are 12 compounding periods. Interest earned each month is added to the balance and is itself available to earn interest in each succeeding month. Thus, the future value is greater than the amount calculated using annual compounding.

      A=P(1+r/n)nt

    3. Weekly Compounding: As should be expected,increasing the frequency of the compounding period increases the impact of the interest rate. That it does so should be intuitive: more interest is available sooner to earn more interest. Whereas before we had to wait until the end of the month before the interest was 'added back to the pot', now it is being credited each week.

      A=P(1+r/n)nt

    4. Daily Compounding: Now instead of earning interest weekly, we earn it daily. As expected the, the impact of the interest rate is magnified. However, this time the impact is not as dramatic as might be expected.

      A=P(1+r/n)nt

    5. Continuous Compounding: Interest that is, hypothetically, computed and added to the balance of an account every instant. This is not actually possible, but continuous compounding is well-defined nevertheless as the upper bound of "regular" compound interest. The result is the maximum effect that compounding frequency can exert on a given interest rate and term.

      A=P(1+r/n)nt

    Compare and Get Best Fixed Deposit Interest Rates in India

    Below table (Updated on: 23 Jul 2017) contains best rates for Rs. 1 lakh deposit. Use our Fixed Deposit Rate Comparator to get the best FD rate for other deposit amounts.Check FD rates Now »

    Bank Period Interest % p. a for Rs. 1 Lac
    City Union Bank
    City Union Bank
    30 days 6.75% Get City Union Bank FD Rates »
    Karur Vysya Bank
    Karur Vysya Bank
    60 days 7.25% Get Karur Vysya Bank FD Rates »
    Karur Vysya Bank
    Karur Vysya Bank
    90 days 7.25% Get Karur Vysya Bank FD Rates »
    Karur Vysya Bank
    Karur Vysya Bank
    120 days 7.90% Get Karur Vysya Bank FD Rates »
    Darcl Logistics
    Darcl Logistics
    6 Months 9.25% Get Darcl Logistics FD Rates »
    Bharat Bank
    Bharat Bank
    9 Months 8.50% Get Bharat Bank FD Rates »
    SRS Limited
    SRS Limited
    1 Year 12.00% Get SRS Limited FD Rates »
    Bharat Bank
    Bharat Bank
    1 Year 6 Months 9.00% Get Bharat Bank FD Rates »
    SRS Limited
    SRS Limited
    2 Years 12.25% Get SRS Limited FD Rates »
    SRS Limited
    SRS Limited
    3 Years 12.50% Get SRS Limited FD Rates »
    Bharat Bank
    Bharat Bank
    4 Years 9.25% Get Bharat Bank FD Rates »
    Bharat Bank
    Bharat Bank
    5 Years 9.25% Get Bharat Bank FD Rates »

    FAQs of Fixed Deposit

    How does a fixed deposit account work?

    A fixed deposit allows an individual to keep a certain amount of money with a lender/bank for a certain duration of time for which he/she can earn a certain interest amount. The interest earned on an FD account is calculated based on the deposited amount and the term of the account. An FD account with a higher deposit amount will attract higher interest rates and likewise. The individual can choose to deposit a certain amount of money for a minimum of one month and a maximum of five years. As the name sounds, a fixed deposit account doesn’t provide the facility to withdraw the fund before the maturity, however, should the need arise, the account holder can liquidate the funds for a much lesser interest rate. The customers need to keep in mind that the interest earned on an FD account is subject to income tax.

    Can I break my fixed deposit before maturity?

    Yes, a fixed deposit account can be liquidated before maturity, however, the interest payable will be lesser than what is given at maturity of the account. The account holder will need to get in touch with the bank or use the net-banking service (subject to availability) to liquidate the fixed deposit account at any time during the term.

    What is meant by cumulative fixed deposit?

    A fixed deposit account is provided under either a cumulative or non-cumulative deposit scheme. Under a cumulative fixed deposit account, the account holder is entitled to the interest that is payable at the account maturity along with the principal amount. In cumulative deposits, the interest is accumulated with the deposit amount, which is eligible to earn compounding principle interest on monthly/quarterly/annually basis. Whether the account reaches the maturity or subject to premature withdrawal, the principal, as well as the accumulated interest amount, is paid to the customer at the end of the term.

    What is good, FD or RD?

    A FD is an investment plan where a lump sum is put aside for a fixed period of time to earn interest.

    A recurring deposit (RD) account is a type of investment plan where a certain sum of money is deposited every month or at set intervals of time for a fixed tenure. Interest is earned on the same.

    The interest earned on an FD will be much higher than that earned, for the same amount and interest rate, on an RD. Therefore, it always wise to choose an FD over an RD.

    Is fixed deposit tax free?

    Those investing in a tax saver fixed deposit can claim exemption under Section 80C of the Income Tax Act. The sum invested towards this will be deducted and will not be a part of the taxable income.

    However, one must note that the interest earned on such term deposits will be taxable based on the tax bracket of the individual.

    Is fixed deposit under 80C?

    Only in case of tax saver fixed deposits, exemption can be claimed under Section 80C of the Income Tax Act. For other types of fixed deposits, interest earned will be taxed and exemption cannot be claimed under this section.

    What is non-cumulative fixed deposit?

    A non-cumulative fixed deposit scheme is an investment plan where the interest is payable at regular intervals, which may be payable on a monthly, quarterly or half yearly basis, depending on the type of bank. This ensures that the investor is earning interest at regular frequencies on the fixed deposit. On the other hand, in a cumulative fixed deposit account, interest is payable only upon maturity along with the principal amount.

    FD(Fixed Deposit) Tips

    4 golden rules of investing

    Many first-time investors make the mistake of investing in products that they do not know much about. We can help you there. Here are a few rules of investing. Waiting to get started?

    Understand Investments

    Don’t put your hard-earned money into unknown avenues. Learn all you can about an investment product before you invest. Identify your financial needs and choose investments that suit your goals.

    Do Not Time the Markets

    Follow only one mantra while investing. Buy low and sell high. Avoid trying to time the markets. Invest for the long term to beat market volatility.

    Be Realistic In Your Expectations

    Just because some funds promise high returns, don’t expect them to make you rich overnight. Review your investments for profits over a long term.

    Track Your InvestmentsRegularly

    Remember to keep a watch on the performance of your investments. Rebalance your portfolio at regular intervals based on market trends.

    Successful investing is all about making the right decisions at the right time. Are you ready to make your money work for you?

    Tax-saver FDs are popular instruments for saving on taxes.

    The amount invested in these FDs qualify for deductions U/S 80C of the Income Tax Act,1961.

    Money invested in these FDs is locked-in for at least 5 years. This is the minimum time-requirement to qualify for the deduction. Premature withdrawal is not allowed. If the deposit is encashed before maturity, the amounts held under this scheme do not qualify for deductions.

    The maximum amount allowed as deduction is Rs.1.5 lakhs. This is as per changes in the law, effected as of Nov.13, 2014. (Under the Bank Term deposit Scheme, 2006 this amount was limited to Rs.1 lakh). The minimum deposit amount is Rs.100.

    Only the principal invested can be claimed as deduction U/S 80C. Interest earned under this scheme is taxable. TDS is charged @10% on the interest earned during a financial year and thereafter according to the deposit-holders applicable tax-bracket.

    Interest rates are determined by the bank offering this product. They are usually in line with other deposits of similar tenures. Interest earned can either be paid-out or reinvested/compounded.

    In case of joint-holdings, deduction can be claimed by the primary holder only.

    The Fixed Deposit Receipt issued when investing is required to claim said deduction.

    Traditionally, Fixed Deposits (FD) have been seen as a secure and profitable medium of investment. However, many people, especially investors in the higher tax brackets, ignore a crucial detail when it comes to Fixed Deposits- the interest earned through FD is taxable in line with an individual’s tax slab. Consequently, this detail ensures that your returns from FD investments is actually lower than expected. For example- If you are in the 30% income tax slab and have a fixed deposit that gives you 9% interest, the actual interest passed down to you after the tax cuts is just 6%. Thus, having a working knowledge of how taxes work in terms of an FD helps you stay on top of things.

    Remember that interest on fixed deposits are calculated annually or on a cumulative basis. However, the same FD is taxed on an accrual basis, meaning revenue is recognized when earned and expenses are recognized when incurred. Thus, the timeline on reception of the interest on your FD isn’t a factor for tax to be imposed upon it. You will have to pay the corresponding tax at the end of the financial year, and even in situations when the interest isn’t taxable, it must be displayed on your IT returns.

    In order to access funds at a short interval, one can avail a loan against fixed deposits held with the bank. It is given in the form of an overdraft against your deposited amount. This is an alternative given to customer by bank instead of breaking the deposit prematurely.

    Loan against fixed deposit is a great option for those looking to avail a loan at a better rate when compared to personal loans where interest rates range from 14-30% p.a. Moreover, you will continue to earn interest on the deposit though you have availed a loan against it.

    Most of the banks allow a loan in the range of 70-90% of the deposit amount. Some banks even offer more than this range. There is no standard on the amount of loan that can be sanctioned. It varies from bank to bank and also upon the amount deposited.

    Interest rate charged on the loan given on a fixed deposit is usually 2-2.5% above the interest paid by the bank on the deposit. Once again, it varies from bank to bank.

    In order to improve credit scores, or manage credit more responsibly, banks offer secured credit cards i.e. credit cards issued against a fixed deposit (FD) held with the issuing bank.

    Credit cards are usually not given to risky customers i.e. those who are not creditworthy. e.g. those who have poor credit scores, bad histories of managing debt, poor track records of paying dues, defaults on payments etc.

    Key features:
    • Credit Limit: Fixed at a percentage of the amount held as FD. It can go up to 100% in some cases. E.g. credit limit of 80% for a FD of Rs.1,00,000 = Rs.80,000.
    • Validity: Usually in line with the tenure of the FD to which it is linked.
    • Interest Rates: Usually lower than that of regular credit cards.
    • Secured: Against the FD held with the issuing bank.

    Credit cards issued against an FD

    Vs. regular credit cards

    In case of payment defaults: Banks can make recoveries from the fixed deposit if dues are not cleared on secured cards. Regular credit cards are unsecured and unpaid dues can either be written off or recovered through legal recourse.

    Vs. Debit Cards

    Debit cards require the cardholder to maintain adequate funds in his/her account prior to using the card. Secured Credit Cards allow cardholders can make spends, payment for which will be fulfilled at a later date.

    • Renewal -
      1. Rolling over of deposits for another term wherein tenor can differ.
      2. Auto-renewal: Deposit-tenor remains unchanged but interest depends on rates prevailing at renewal.
    • Withdrawal -
      1. Encashment of deposits at maturity
      2. Encashment prior to maturity i.e. premature withdrawal subject to penalty Partial withdrawals (prematurely)
      3. Amounts up to Rs.20,000 can be withdrawn in cash. Amounts above Rs.20,000 have to be transferred to the customers savings account or current account or paid-out through a crossed cheque.
      4. Sweep-In facility / Flexi-Deposits: Withdrawals allowed on interest accrued on an FD. The balance is then held as a new deposit.
      5. Tax-saving deposits: No withdrawals allowed for 5 years minimum
    • Either of the two are executed based on the account-holder’s instructions without which the deposit will be automatically renewed.
    • Fixed Deposit Receipt (FDR) has to be surrendered upon renewal or withdrawal.

    Premature withdrawal or Breaking a fixed deposit means withdrawing the money before the maturity expires. This may be necessary if you urgently require the funds or if there are better investment opportunities elsewhere. Many people want to close their old Fixed Deposit account before maturity and open a new account when they see the current interest rates on fixed deposits in the market much higher than rate of interest at which they have opened FD sometime back.

    Most of the banks charge premature withdrawal penalty in the form of a 0. 5-1% lower interest on customers looking to close their Fixed Deposit

    In the event of the FD being closed before completing the original term of the deposit, interest will be paid at the rate applicable on the date of deposit, for the period for which the deposit has remained with the Bank, with premature closure penalty.

    The Bank on request from the depositor, will allow withdrawal of term deposit before completion of the period of the deposit as per terms agreed upon at the time of placing the deposit.For such premature withdrawals and partial withdrawals, the Bank will levy a penalty of 1%, on the applicable rate.Partial withdrawal is permitted in units of Rs 1,000. The balance amount earns the original rate of interest.

    Non-Resident Ordinary (NRO) Rupee Accounts are maintained by non-resident Indians (NRI) in Indian Rupees, to keep funds that belonged to them before they turned NRI. These accounts can also be used to account for fresh earnings in Indian Rupees even after the individual has turned an NRI, from such sources as house rent, dividend and interests, salary etc. The interest earned from such accounts is taxable as per the Indian income tax regulations. Currently, Indian banks offer an interest rate from 8-10% on fixed accounts that fulfil the NRO parameters.

    Alternatively, a Non-Resident External (NRE) Rupee Accounts are maintained by non-resident Indians (NRI) in Indian Rupees and are meant for foreign exchange that is earned in their country of residence and then transferred to India. The interest earned from such accounts is tax free and the funds can be moved around to other accounts without any restrictions. Currently, Indian banks offer an interest rate from 7-10% on fixed accounts that fulfil the NRE parameters.

    • Nominee: Person entitled to receive funds accrued in a particular FD upon depositor’s death.
    • Nominee details required: Name, age, address, relationship; legal guardian’s details (for minors).
    • Nominees are named for every individual deposit.
    • Proof of depositor’s death required to claim funds.
    • Up to two people allowed as nominees.
    • Without a nominee, money accrued in the FD will not be automatically transferred to the account-holder’s next of kin or legal heirs.
    • Nominees are legally trustees of fixed deposit funds. Money so received will have to be transferred the legal heirs (if different from the nominee)
    • Nominations can be effected for FD accounts held in an individual or joint capacity with an “either or survivor” instruction.
    • Nominations can be changed or cancelled subject to the account-holder(s) consent For FDs held by minors, nominations are done by legal operators of the account.

    Fixed deposit can be opened for a minimum period of 7 days to maximum of 10 years.

    All Resident individuals (Including Minors) and HUF are eligible to open a fixed deposit account

    Also Know About


    • Your Guide to Fixed Deposits

      Planning to invest some money in a Fixed Deposit? Here’s all you need to know. A Fixed Deposit is a savings scheme in which you deposit a principal amount for a fixed tenure. On maturity, you get the principal amount including the interest earned. Simple! What’s more? Fixed Deposits give you guaranteed returns on maturity and offer higher interest rates in comparison to a regular savings account. You can also apply for a loan against your Fixed Deposit and get up to 90% of the amount. You can deposit any amount of money in a Fixed Deposit and also choose the tenure. This could range from 7 days to 10 years. Senior citizens can get higher interest rates on Fixed Deposits which vary from bank to bank. You’ve just learnt everything that is important about Fixed Deposits. Ready to start investing?

      Stay up to date! Daily finance news at your fingertips. Explore Fixed Deposit on Mobile App

      22nd August, 2016

    News About Fixed Deposit

    • FD Investments Preferred More Than MF and Equities

      According a Sebi Survey, over 95% families in India prefer fixed deposits over equities and mutual funds. The survey revealed that only 10% households invest in risk instruments. Life insurance ranks second and precious metals rank third in the list of most preferred investment instruments in the country. The fourth and fifth place are taken by post-office savings and real estate followed by Mutual Funds (MF) and stocks. As per the survey, only 1.4% people in rural areas are aware of equities and MFs.

      12th April 2017

    • FD Deposits of a high amount used for development work in Mumbai :BMC

      The BMC has said that all fixed deposits amounting to a high amount to the tune of Rs.61,510 crore kept in numerous banks will be used only for city development projects. Corporators from various parties had said that the money should not be used for any purpose other than for Mumbaikars instead of burdening them with hikes. Sanjay Mukherjee, the Additional Municipal Commissioner said that these funds would be used purely for development purposes.

      According to civic officials, BMC makes provision of large scale for capital works in the budget and takes a year or more for these works to be completed. Delay in procuring no-objection certificates, permissions from departments such as railway, forest and environment occurs frequently.

      6th April 2017

    • Oxxy to open FD for each girl child born in India

      After the brilliant performance of Indian female athletes in the Rio Olympics, Oxxy, one of India’s largest healthcare networks, has announced that it will make a fixed deposit of Rs.11,000 for each girl child born in the country. The company said that there will be no contribution taken from the parents and the allocation of the funds will be handled by Oxxy. The fixed deposit can be withdrawn by the girl when she attains the age of 18 years. Everyday approximately 50,000 children are born in India and Oxxy is expecting approximately 5,000 registrations per day. Oxxy’s Girl Development Program is available to every expecting mother and has helped reduce the infant mortality rate by educating expectant mothers on the various tests they need to undergo in accordance with global standards.

      9th March 2017

    • Jan Dhan Deposit withdrawal reaches Rs.5,582 crores in one month after note ban

      A net withdrawal of Rs.5,582.83 crore has been observed in Jan Dhan accounts ever since 7th of December which was the day deposits in all these accounts increased to an all-time high after Prime Minister Narendra Modi’s decision to ban cash notes worth Rs.500 and Rs.1,000 in order to curb corruption, a move which came to be known as demonetization.

      Total deposits had increased to a high of Rs.74,610 crore on the 7th of December and after that started reducing gradually to close at Rs.69,027.17 crore on the 11th of January, according to the latest data from the Finance Ministry. During the period between 7 December to 11 January, the total deposit had reduced by rs.5,582.83 crore. As of now, there are around 26.68 crore Jan Dhan accounts. The upper withdrawal limit per month for a Jan Dhan account has been fixed at Rs.10,000 from the 30th of November to check for misuse of these accounts. The upper limit for all deposits in a Jan Dhan account is Rs.50,000. On November 9th, the day after demonetization was announced, there were 25.5 crore accounts which had a deposit of 45,636.61 crore. Total deposits in these accounts increased by around Rs.28,973 crore in around a month.Mr.Singh also said that this was just a soft launch and that the firm is planning a mega launch to announce its arrival sometime in April.

      9th February 2017

    • Utkarsh launches Small Finance Bank

      Utkarsh Micro Finance, backed by Commonwealth Development Corporation (CDC) has begun a new chapter by foraying into the banking sector.

      The company which began operations on the 23rd is looking to take the market over by storm by providing higher deposit rates compared to major banks.

      At present, the bank is looking to reduce the 1% processing fee levied on new loan borrowers and is also considering reducing the lending rates in the near future. Currently, the lending rates range between 15% - 25% annually.

      Managing Director of the bank, Govind Singh, spoke to the media and said that the company has successfully completed all formalities and has launched five full-fledged branches in key areas.

      He also said that the company is the first banking-related entity to be launched since demonetisation and that all this was possible because CDC pumped in Rs.150 crores in Tier-II capital about two weeks ago.

      Mr.Singh also said that this was just a soft launch and that the firm is planning a mega launch to announce its arrival sometime in April.

      7th February 2017

    • From Yes Bank to SBI, lenders slash deposit rates to cut the cost of funds

      Last fortnight, the non-food credit in banking system was 9.3%. However, on September 30 when the fortnight ended, the non-food credit in banking system went up to 10.6%. When the fortnight ended, as per the Reserve Bank of India, the review for non-food credit stood at Rs.74.35 lakh crore. There was also some growth with bank deposits which was 11.3% year on year. The previous fortnight, the year on year rate stood at 9.9% which amounted to a total sum of Rs.101.43 lakh crore. This was for the first time that the banking deposits surpassed Rs.100 lakh crore milestone.

      There has been very less growth in the section of loan sanctions. So the 10.6% credit growth is basically a result of the demands from retail segment. The management of different banks have agreed on the same and stated that this would remain their focus area now. The borrowing have been moved by different companies to corporate bond market. This has happened due to the low rates of interest. The lowest MCLR for one year is 9.05% at present. For corporate bonds that come with AAA rating, the benchmark rate set by FIMMDA is 7.6%.

      18th October 2016

    • SEBI Bars Banks from using FDRs as Collateral

      According to SEBI, banks are not allowed to use their own fixed deposits receipts as collateral as clearing or trading stock exchange members, whether they function directly or through associates. This move was made as step towards strengthening SEBI’s risk management mechanism. Clearing corporations received a circular directing them to stop accepting FDRs from banks. For those members who already deposited their FDRs or their FDRS from associate banks, they would be required to replace the collateral with other eligible security within the next 6 months. IOSCO, the international securities regulator body, has its own global benchmarks set for collaterals. The need for Indian markets to align the risk management practices along the lines of global benchmarks has emerged. In light of this, SEBI has taken the step to bar FDRs being used as collateral.

      21st July 2016

    • Positive Real Rates for Depositors

      Before Raghuram Rajan took over as the Governor of the Reserve Bank of India, depositors were facing negative real rates when it came to their savings. People turned to more lucrative investments such as gold, land and other non-financial assets. An important objective for Rajan was to raise the interest for savers with a decent positive real rate. Since January 2014, the rates have been rising as inflation started to fall. In the past few months, the real term deposit rates have been declining. However, the rates have stayed positive making deposits more appealing. For those interested in depositing their money in fixed deposit schemes, the returns will be higher than what they were a few years back.

      21st June 2016

    • Stocks Did in Three Years What KVP and FD Can Do in Eight Years

      Money invested in stocks increase in value much faster than money invested in KVP or FD. It is important to not invest everything in just one investment option but to diversify. Diversification reduces risks that are specific to stocks and provides better returns as well.

      Companies that provide visible growth in earnings are generally chased by companies resulting in an increase in their valuation. However, there are times when investors get trapped while chasing such companies. Although stocks look expensive upfront, they must be evaluated based on their growth, sustainability and visibility of earnings.

      20th June 2016

    • Growth in Bank Deposits Sinks to 5 Decade Low for FY16

      The financial year 2015-16 saw bank deposits grow at 9.72%, a 5 decade low for the segment on a year-on-year basis.

      The low bank deposit rate has caused alarm, given that the government has recently lowered small savings interest rates which has brought them equivalent to bank deposit rates.

      The low rate has been blamed on high interest rates, resulting in depositors withdrawing and spending more.

      Scheduled commercial banks have seen barely 9.9% growth with regard to their deposits, caused due to low inflation and a high real interest rate.

      Credit increased by 11.28% for the same time period, with advances for the period being Rs. 73, 026 billion. Due to the problem of capital shortage and a rise in the number of non-performing assets, the Finance Minister announced a capital infusion of Rs. 25, 00 over the 2016-17 fiscal year.

      28th April 2016

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