Canara bank FD rate 7.19% (normal)and 7.71% (Sr Citezen) interest 666 days
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There is a need for balance while making investment. No doubt the return is more in mutual funds / stocks but there is huge risk in stocks as well in mutual funds.
Mutual funds are long term.
FD has no risk so major amount should be fds rest can be in stock or mutual funds.
My funda is invest in stocknor mutual funds for the amount you can take risk only and if anything happens - you don't get bankrupt....
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Mutual funds are long term.
FD has no risk so major amount should be fds rest can be in stock or mutual funds.
My funda is invest in stocknor mutual funds for the amount you can take risk only and if anything happens - you don't get bankrupt....
Every financial instrument has some risks associated with it. Some have volatility issues, some have liquidity issues, some have not being able outperform the inflation issues....
Us federal Reserve is going to increase another 0.75% in the nov.. Rbi will follow another atleast 0.5% ( 50 bps) in the next meeting in nov.
That said can bank 1 year fd for senior @ 7% is not bad ( for a quasi govt bank IDBI also of late offering above 6.6© for senior.
Right now iam on waiting mode in short term deposit till dec.
Karnataka bank 7 day fd @ 5.25%
Karur vsya bank 31 day fd @ 5.3%
Indusind 31 day@ 4.75% /7 day at 4.25%
DCB bank 14 days at 5.25%
RBL bank 15 days at 4.25%
2023 full year interest rate may slowly inch up & or will be on hold ( same) no reduction till Inflation drops to 2-4% ( right now govt fake statistics is 7-8% . Real inflation is around 15-20%)
So canara 366 days fd will be on my short list by end nov/ end dec. ( minimum 5 lakh)
Banks will take few weeks to reflect this change. But I agree with your thoughts. Also, it is 7.5 currently for senior citizens.
Wholesale inter bank rates are up. That is why all the banks are slowly increase fd rares. Current situation FOR 1 YEAR APPROXIMATELY ( for senior citizen)
SIB 6.9%
AXIS 6.5%
KOTAK 6.5%
CUB 6.5%
BANDHAN 7.5%
RBL 7.5%
INDUSIND 7%
AU 7.1%
you can expect another 50-75 basis point Increse in fd rates by end nov/ mid December.
So dont make all your funds in one go or beyond 400 days right now. Better opportunity awaits in 6-10 weeks
I also park funds short term in high Interest sb ( no tds) in the following banks. All for balances above 1 lakh rs)
AU ( 5% MONTHLY payable SB INTEREST) ( 6% above ₹ 10 lakh)
BANDHAN (6% QUARTERLY)
RBL (5.5% QUARTERLY)
DCB (5.5% QUARTERLY)
EQUITAS (6% UP TO 5 LAKHS, 7% FOR BALANCE ABOVE 5 LAKHS)
Those are rookie numbers need to pump it up at least 9%
Why noone discuss government security for above 1year, and short term t -bills compared to bank fds it gives high returns and secured I dont hv any experience I can see in utube
You can also open 1 single FD in your name and another joint FD with your spouse or parents. They are both insured by DICGC.
I don't get it! Why does an expert working in bank give 0.5%more for a specific tenure like 444D or 666D give 0.5%more than current rates? I mean what's the catch here?. It should definitely be more than to attract customers., Bank rates for 1-3 yrs(other than 666 days) is 0.5%less
Let's say a person X keeps in fd for 1yr 11m & person Y for 1y 10m(666 days) the interest earned by X after 1yr 10m will be less than Y??.
_______________________________________________P.s: have discussed similar offer in KBL senior manager few yrs ago, according to him bank still gets to pay less interest to customer in comparison with standard tenures, according to him some offers are simple interest without any compounding, & other offers strategically plan in such a way to skip compounding of 1 quarter thereby reducing compounding interest of 1 quarter. (In KBL's case it was simple interest that time)
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@caks2006407, @guest_999 @casahib273
pls tag any ppl in banking industry or experts if you know, thanks
vu ..
please educate, why prefer FD over Stocks or Bonds If horizon is 600+ days