FD return rate reduced ?

Keep 1 Lakh+1 rupees in IDFC bank savings acc & get 7% interest.

Keep 1 Lakh in DCB bank shubhlabh savings acc & get 3.5% interest(3500)+4800 cashback(400/month on doing 4 debit card transactions with no min value so even a rs.20 debit card swipe at nearby store will do) so total ~8.3% interest rate.

guest_999 wrote:

Keep 1 Lakh+1 rupees in IDFC bank savings acc & get 7% interest.

Keep 1 Lakh in DCB bank shubhlabh savings acc & get 3.5% interest(3500)+4800 cashback(400/month on doing 4 debit card transactions with no min value so even a rs.20 debit card swipe at nearby store will do) so total ~8.3% interest rate.

Subhlabh account of DCB yes , their agent was suggesting me Subhlabh account over elite account . But I choose Elite because of 1.6% and use in CRED and in case of subhlabh ACCount it’s 400 rupees only max per month as CB.

small finance banks still provide 8.5% to 9%. utkarsh, suryoday, jana all 8.5 to 8.75, fincare 9%. also keep money upto 1 lac in 1 individual a/c. for more deposits, open multiple a/c in family name and also make all permutation combination to get a/cs as joint holders. last is not to put all money in only one sbf but divide among these 4-5 good interest paying banks.

economy is going through deflation. loans becoming NPAs. bankers shaky of giving new loans. naturally interest on deposits are bound to come down.

marketdimer wrote:

small finance banks still provide 8.5% to 9%. utkarsh, suryoday, jana all 8.5 to 8.75, fincare 9%. also keep money upto 1 lac in 1 individual a/c. for more deposits, open multiple a/c in family name and also make all permutation combination to get a/cs as joint holders. last is not to put all money in only one sbf but divide among these 4-5 good interest paying banks.

all those banks are very risky, they can run away with all deposit

Imharsh wrote:

all those banks are very risky, they can run away with all deposit

yes small banks are way riskier than top banks in India .

Imharsh wrote:

all those banks are very risky, they can run away with all deposit

yes small banks are way riskier than top banks in India .

panchabhut wrote:

economy is going through deflation. loans becoming NPAs. bankers shaky of giving new loans. naturally interest on deposits are bound to come down.

It’s a good thing. People can take loan at a lower interest rate to do business. 🙂

Imharsh wrote:

all those banks are very risky, they can run away with all deposit

Harah bhaiya, most banks are working since 2 or more years. How many of them ran away? Is RBI blind that it is giving new on tap licenses to those banks which already are planning to run away? These banks require capital and they all are funded by VCs and not any person’s 1 lac rupee FD. All banks need to float IPO within a year now, instead of running away with 500 crores to 2000 crores collected after IPO, why would they run away with 30-50 crore deposits? Also, 1 lac is insured. Baaki to Yes bank, ICICI aur PNB tak doobne wale the. Let’s see when they all run away.

marketdimer wrote:

Harah bhaiya, most banks are working since 2 or more years. How many of them ran away? Is RBI blind that it is giving new on tap licenses to those banks which already are planning to run away? These banks require capital and they all are funded by VCs and not any person’s 1 lac rupee FD. All banks need to float IPO within a year now, instead of running away with 500 crores to 2000 crores collected after IPO, why would they run away with 30-50 crore deposits? Also, 1 lac is insured. Baaki to Yes bank, ICICI aur PNB tak doobne wale the. Let’s see when they all run away.

It is correct that up to 1 Lakh deposit is secured but that does not include the waiting time & hassles.It is not worth extra risk/hassle for just an extra 1% to invest in small finance banks(& these were never meant for such things anyway). As for Yes Bank,ICICI,PNB failing, those were just rumors & nothing else. It is very difficult for a regular commercial bank to fail in India that too with depositor’s money because of RBI’s regulations regarding keeping a decent amount of capital in safe sources(CRR/SLR). Worst case scenario,RBI will merge the failing bank with another bank & there is always LIC to prop up(like in case of IDBI).

how is the condition of IDBI Bank after LIC being part of it

guest_999 wrote:

It is correct that up to 1 Lakh deposit is secured but that does not include the waiting time & hassles.It is not worth extra risk/hassle for just an extra 1% to invest in small finance banks(& these were never meant for such things anyway). As for Yes Bank,ICICI,PNB failing, those were just rumors & nothing else. It is very difficult for a regular commercial bank to fail in India that too with depositor’s money because of RBI’s regulations regarding keeping a decent amount of capital in safe sources(CRR/SLR). Worst case scenario,RBI will merge the failing bank with another bank & there is always LIC to prop up(like in case of IDBI).

I agree on waiting part. However the earlier instance of long wait occured due to two main things, 1 most banks were cooperative banks and 2 kyc of customers were not upto mark niether they were aware of defaults so early (just opposite to pmc where nothing happened where dicgc could have helped still customers knew about situation). Also all these mentioned sfb banks are scheduled banks which are reviewed and assessed by the rbi thrroughly before giving such status. Anyways, a little more return will mean little more risk.

desiman wrote:

how is the condition of IDBI Bank after LIC being part of it

It is not LIC being part of it,it is more like LIC being controller of it.Obviously it will take time for its situation to improve but for now it won’t become worse because now any big loan approval needed to be approved by LIC board members first & they will obviously be not as negligent/influenced as earlier management.