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  • Fixed Deposit BYTES FROM OUR KITCHEN

    CRISIL Rating and their Effect on FDs

    What kinds of instruments does CRISIL rate?

    CRISIL is a full service rating agency and is the largest of its kind in India. CRISIL has singlehandedly pioneered the concept of credit rating in the nation. It has been trusted to rate a wide array of debt instruments including, certificate of deposit, bank loans, commercial paper, non-convertible debentures, bank hybrid capital instruments, asset backed securities, mortgage backed securities, perpetual bonds, partial guarantees, etc.

    Who does CRISIL cater to?

    Established in 1987, CRISIL’s ratings caters to investors, lenders, issuers, market intermediaries and regulators. CRISIL provides information that are required by these categories and issues credible benchmarks for evaluating the feasibility of credit repayment.

    What sectors do CRISIL ratings cover?
    CRISIL Rating and their Effect on FDs

    CRISIL ratings actively cover manufacturing companies, banks, non-banking finance companies, public sector undertakings, financial institutions, state governments, urban local bodies, mutual funds, industrial companies, non-banking financial institutions (NBFCs), Infrastructure entities, microfinance institutions, urban local bodies, etc. with a wide net encompassing 190 industry sectors.

    What is the role of CRISIL?

    CRISIL ratings play an invaluable role in providing assistance to issuers and borrowers. It bridges the gap between borrowers and funds, while also providing alternatives for the purpose of funding. Additionally, CRISIL ratings enhance the cost of funds by optimising them.

    How do CRISIL ratings affect Depositors?

    CRISIL ratings are heavily relied on by investors and lenders to supplement the internal evaluation process before submitting to making an investment. Whereas, with the view of the markets as a whole, CRISIL ratings are considered an important benchmark for pricing as well as trading of debt instruments.

    Furthermore, CRISIL ratings aid regulators in measuring and managing the credit risk involved with the activity of lending. These ratings are also useful in computing an entity’s adequacy in the sector of banking. Determination of eligible investment pool for insurance companies, pension funds and provident funds are also enabled with CRISIL ratings.

    How to decipher CRISIL’s rating system?

    CRISIL follows the following rating system while rating fixed deposits-

    NMNot Meaningful
    FDDefault
    FCHigh risk
    FBInadequate safety
    FAAdequate safety
    FAAHigh safety
    FAAAHighest safety

    CRISIL may add a (+) or (-) for ratings FAAA to FC to indicate the position of the company within the rating category.

    What does a good CRISIL score indicate?

    CRISIL ratings are one of the most important factors to gauge when looking for a company fixed deposit. A company’s or bank’s credibility is greatly determined using CRISIL ratings. Company fixed deposit schemes are generally graded by CRISIL and is the first thing that investors look into before making an investment in an account. These ratings behaves as an assurance that indicates the highest degree of safety for a fund. It also shows the timely servicing of the entity’s financial obligations, in turn aiding to the credibility. CRISIL ratings enable depositors to differentiate between high credit risk organisations from low credit risk organisations. For example, HDFC Bank is rated FAAA by CRISIL, thus indicating high credit quality and low credit risk in their fixed deposit scheme. The first and foremost thing to watch out for would be to invest into well rated schemes. A usual indicator for a well rated scheme is AA and above ratings.

    Higher rate of interest vs higher CRISIL rating?

    Institutions that offer higher rates of interest due to low credit ratings are usually high risk investments. Financial institutions that have received a bad rating from CRISIL tend to offer lucrative interest rates in order to lure depositors into investing.

    CRISIL provides an unbiased and objective assessment of an entity’s timely repayment capacity and history. This allows investors to make independent decisions when it comes to making a deposit in a company fixed deposit scheme.

    Why do investors rely on CRISIL ratings?

    CRISIL ratings greatly aid in understanding the financial health of the company offering the fixed deposit scheme. It allows the depositor with the assurance of making a comparative analysis amongst the various players in the market. It also enables the act of investing by securing the channels leading to investment decisions. With an easy to understand and simple rate card, depositors now have a benchmark to compare various offerings of the product. This allows the investor to wisely make a decision regarding the investment of hard earned money. Furthermore, CRISIL makes it possible to sieve through the numerous offers that are available across various companies.

    Does CRISIL rating affect a company’s Fixed Deposit rates?

    CRISIL does not directly affect Company FDs in any way, but is a sure shot way for investors and depositors to check the credibility of a particular entity before making a long term commitment. With the ever changing market trends, CRISIL makes it easier for the layman to keep up with the ever changing dynamics of the industry.

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    Customer Reviews

    • SBI Fixed Deposit
      "Interest rates are good compared to others"
      0.5 3.0/5 "Satisfactory"
      No reason for choosing my fixed deposit account with state bank of India. They are providing a interest rate of 6.75%. I have invested the amount of Rs. 50000. There is a lockin period of 2 years. I can deposit for a long time as well. There is processing fee for my FD account.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jun 24, 2019
    • Standard Chartered Bank
      Standard Chartered Bank Fixed Deposit
      "Recommendable Product"
      0.5 5.0/5 "Blown Away!"
      For the fixed deposit, Standard Chartered is providing flexible duration based on that interest may get vary. I would say its very attractive than other banks. Minimum we can invest from Rs. 10,000, the online transaction is very convenient as well.
      Was this review helpful? 0
      , noida
      Reviewed on Jun 24, 2019
    • Standard Chartered Bank Fixed Deposit
      "Recommendable Product"
      0.5 5.0/5 "Blown Away!"
      For the fixed deposit, Standard Chartered is providing flexible duration based on that interest may get vary. I would say its very attractive than other banks. Minimum we can invest from Rs. 10,000, the online transaction is very convenient as well.
      Was this review helpful? 0
      , noida
      Reviewed on Jun 24, 2019
    • Kotak Fixed Deposit
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      I activated fixed deposit through Kotak Mahindra online banking, minimum we can invest from Rs. 10,000 for the duration of one year. The interest rate is good than other bank, there is no charges for per mature liquidity. The closure procedure is very easily I can also deactivate the FD service through online.
      Was this review helpful? 1
      , chandigarh
      Reviewed on Jun 21, 2019
    • Karur Vysya Bank Fixed Deposit
      "Service is good"
      0.5 5.0/5 "Blown Away!"
      Rate of interest is little bit high compared to other bank hence i have chosen the Karur Vysya bank for my fixed deposit. I have invested the amount of Rs. 5 lakhs. They have given me a monthly interest rate of Rs. 4400. I have got a proper response from the bank. On the maturity date, i have submit the bond and get the cash.
      Was this review helpful? 1
      , chennai
      Reviewed on Jun 16, 2019
    • Indian Bank Fixed Deposit
      "Service is good"
      0.5 5.0/5 "Blown Away!"
      I have chosen the Indian bank because of its a Government undertaken bank. I have invested the amount of Rs. 5 lakhs. They have given me a interest rate of 4100 monthly basis. They won't charge for anything extra. I visited their branch and put the money and the employee response. I'm happy about the returns because i got the interest on monthly basis.
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 16, 2019
    • SBI Fixed Deposit
      "Safe and secured"
      0.5 5.0/5 "Blown Away!"
      Being a middle class person definitely I think to invest my money that's the reason I chosen SBI fixed deposit because its safe and secured. I can deposit for long term, the online feature is great and I can open and close the FD account through netbanking.
      Was this review helpful? 5
      , kolkata
      Reviewed on Jun 13, 2019
    • ICICI Bank Fixed Deposit
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I did a Fixed deposit in ICICI BANK for my kids because I got my salary account and also have opened separate account for my kids and wife on the same bank so its easy to do the payment and linked together. The interest rate is 6.75% moreover the options are very flexible, the locking period is like 1month , 3 months, one year,etc and even the online services are enabled. Whenever I have good amount on the account so go for FD on the selected month, the interest amount will be credited into account.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jun 11, 2019
    • Oriental Bank of Commerce Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have Oriental bank Of Commerce Fixed deposit account ,I have not faced any difficulties so far on using this account .Customer service is also good so far .Each and every transaction will be safe and secure .There was no drawbacks faced so far .I am very much comfortable and easy going and completely satisfied with the service.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jun 06, 2019
    • Axis Bank Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have a Fixed deposit account with Axis Bank. I have not faced any difficulties so far on using this account. The customer service is also good so far. Each and every transaction will be safe and secure .There was no drawbacks faced so far. I am very much comfortable in using this account.
      Was this review helpful? 3
      , hyderabad
      Reviewed on Jun 06, 2019
    • HDFC Bank Fixed Deposit
      "Good"
      0.5 4.0/5 "Great!"
      I done a Fixed Deposit account with HDFC BANK before 2 years and the rate of interest was good. I have withdrawn the money and its neither loss or nor profit. My money is safer and return is very low. There was no locking period and the executive is supportive.
      Was this review helpful? 1
      , mumbai
      Reviewed on May 30, 2019
    • HDFC Bank Fixed Deposit
      "Its Good"
      0.5 5.0/5 "Blown Away!"
      I had fixed deposit in HDFC for the amount of Rs.10,000 then I withdrawn in two months I got some interest. I went to the bank for account opening within few minutes they helped to open the account. There is no charges for pre matured liquidity fund.
      Was this review helpful? 2
      , hyderabad
      Reviewed on May 25, 2019
    • HDFC Bank Fixed Deposit
      "Good Returns from HDFC"
      0.5 4.0/5 "Great!"
      As per the guidance , I taken a Fixed Deposit in HDFC . This is one year plan and worth enough to take this plan in HDFC comparing with the interest rate . I am really happy with the better returns for my FD . I thought of continuing after one year also .
      Was this review helpful? 1
      , hyderabad
      Reviewed on May 13, 2019
    • HDFC Bank Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I am using HDFC Bank Fixed Deposit for the past 6 years ,using net banking is also good ,customer service is good .flexy deposit ,whenever required can take the amount and can deposit it later .There was no issues faced so far .The Banking service is good to me so far.I am satisifed with the banking service.
      Was this review helpful? 3
      , chennai
      Reviewed on May 13, 2019
    • Oriental Bank of Commerce Fixed Deposit
      "Trusted investment for the future"
      0.5 5.0/5 "Blown Away!"
      I have fixed deposit with Oriental Bank of commerce, they give interest rate around 7.5%when I was invested but I am not sure about current one. However there is no charges applicable for the fd maintenance, They have nice online banking to open or close the account and its a trusted one.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 13, 2019
    • ICICI Bank Fixed Deposit
      "Have to be more quick in their procedure"
      0.5 3.0/5 "Satisfactory"
      I have Fixed Deposit with ICICI also which was matured earlier even it was a tax free accounts they are charging some amount. Before the financial year completion, i need to submit the document to income department to get my fund but the procedure is too long and I did not get the money. I had done investment of 1L and 0.50L which am unhappy. I would suggest them to provide the bills on time after this experience have stopped investing with them.
      Was this review helpful? 3
      , hyderabad
      Reviewed on May 12, 2019
    • HDFC Bank Fixed Deposit
      "Very much convenient"
      0.5 5.0/5 "Blown Away!"
      My all time favorite is Fixed Deposit which is secured and I can count the returns on evey month which am most comfortable. My family all have them are having in HDFC account, the manager is very friendly and rendering the service. Am doing investment since 2011 and their services are more good than the profit.
      Was this review helpful? 1
      , hyderabad
      Reviewed on May 12, 2019
    • Axis Bank Fixed Deposit
      "Convenient fixed deposit"
      0.5 4.0/5 "Great!"
      My fixed deposit was opened with Axis bank, I invested around Rs. 1 lakh for one year. If I want I can also extend the tenure. I believe the rate of interest is more than 7% for per annum. I can also track the fixed deposit through online banking its more simple.
      Was this review helpful? 6
      , thane
      Reviewed on May 04, 2019
    • HDFC Bank Fixed Deposit
      "Userfriendly FD experience"
      0.5 4.0/5 "Great!"
      I do have fixed deposit with HDFC, I opened it through online there is no locking period, while opening I have specified the maturity date. Minimum deposit start from Rs. 5000, they are providing 7.3% per annum. Its safe and secured to invest money with HDFC.
      Was this review helpful? 3
      , bangalore
      Reviewed on May 03, 2019
    • SBI Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I am having fixed deposit with State Bank Of India ,interest is good .The banking service is good so far .I have not faced any issues so far .Money will be safe on this account .Whenever need money can take and can deposit as well .The banking service is good and satisfied so far .Will get frequent update as well. I am satisfied with the overall service.
      Was this review helpful? 13
      , faridabad
      Reviewed on Apr 30, 2019
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