Which bank is giving best interest rate of shor...

Which bank is giving best interest rate of short term FD

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Deal Subedar
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I got some spare money which I want to park for a year. Can someone please suggest which bank is giving best rate on short term FD these days?

33 Comments  |  
15 Dimers
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Use jana or dcb bank for upto 1 lac of amount
Co-operative banks give even more

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Deal Subedar
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karanoshan wrote:

Use jana or dcb bank for upto 1 lac of amount
Co-operative banks give even more

How about IDFC First Bank account which is giving 8% for 1 year?

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Deal Cadet
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Better buy liquid fund

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sardasa wrote:

How about IDFC First Bank account which is giving 8% for 1 year?

Bank interest rate can change any time
Fd cannot

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Deal Subedar
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karanoshan wrote:

Bank interest rate can change any time
Fd cannot

8% is on 1 year FD only.

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himan23 wrote:

Better buy liquid fund

Would prefer fixed return rather than betting on market.

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Deal Cadet
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8% interest rate on 1 yr fd in idfc bank, ping me for referral

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Deal Cadet
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8.50% for 100 days in Dyndeep co society. Trusted since 1979

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sardasa wrote:

8% is on 1 year FD only.

Yes you can go for it, however don’t put more than 1 lac in a single Fd, split it up if needed
Samay kharab hai

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Deal Cadet
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liquid fund betting on market!!!! bhagwan apki vala kare pensive

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Aveejeet wrote:

liquid fund betting on market!!!! bhagwan apki vala kare pensive

Where else do liquid funds put our money into?

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rockylucifer wrote:

8% interest rate on 1 yr fd in idfc bank, ping me for referral

Any benefit of using referral code?

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Deal Cadet
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Liquid funds buy government bonds and corporate debt papers, they return 7.2% a year and can be redeemed with in a day
They are the safest of the funds available
Till now only 3-4 funds have given flat return in history for a year, which had exposure to il&fs bonds.

Pada
Deal Lieutenant
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karanoshan wrote:

Use jana or dcb bank for upto 1 lac of amount
Co-operative banks give even more

any problem with 5-10lakhs FD? i do understand that the guarantee is 1 lakh per account but, is there any case of banks running away with fd’s and balances?

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karthi4052752 wrote:

any problem with 5-10lakhs FD? i do understand that the guarantee is 1 lakh per account but, is there any case of banks running away with fd’s and balances?

Bhai Kalyug hai, i dont even trust the gormint
its better to split in multiple fd across banks
plus if interest goes over 10k a year TDS is cut unless u submit some extra forms

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Deal Cadet
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If want to go totally safe go for indusind bank
Indusind 7.50%
Hdfc 6.60%
Icici 6.75%
Sbi 6.50%

Otherwise idfc as suggested by dimers but havent used it.

Another option is liquid fund but return is not totally fixed ranges between 6 to 8% dependent upon fund and time of investing.

Pada
Deal Lieutenant
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karanoshan wrote:

Bhai Kalyug hai, i dont even trust the gormint
its better to split in multiple fd across banks
plus if interest goes over 10k a year TDS is cut unless u submit some extra forms

Yes, bro i understand. But i am thinking of starting my savings with 15-20k a month with a small finance bank giving 9% interest. That is why i wantes ti clear my doubts. It is 40k a year now bro for the taxabke interest income

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Deal Cadet
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Government bonds are the safest way to invest in the world, they are usually known as AAA bonds in US

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dimer-ino.1 wrote:

If want to go totally safe go for indusind bank
Indusind 7.50%
Hdfc 6.60%
Icici 6.75%
Sbi 6.50%

Otherwise idfc as suggested by dimers but havent used it.

Another option is liquid fund but return is not totally fixed ranges between 6 to 8% dependent upon fund and time of investing.

Is IDFC not trusted?

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Deal Cadet
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axis- 7.2%

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karanoshan wrote:

Bhai Kalyug hai, i dont even trust the gormint
its better to split in multiple fd across banks
plus if interest goes over 10k a year TDS is cut unless u submit some extra forms

now its 40000 for TDS exemption limit

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https://cdn0.desidime.com/attachments/photos/585359/original/Screenshot_20190917-100749__01.jpg?1568695094You can go for YES Bank FD. If you get a FD worth min 50k, any duration, you will also get AMB waiver on savings account till you have FD in your account. You can go for special rates FD of 12 months 10 days to 12 months 20 days and get an annualized yield of 8.08%

You can earn 6% cumulative interest rate on balances above 1lacs. Even on one lac one rupees you will get cumulative 6% while most of the banks give incremental interest rates on savings deposits.

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Deal Cadet
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I want to open an account with IDFC. I am ok with 25k minimum balance.

What are the benefits of opening it with referrals? Can I select a branch of my choice if you referral?

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desiman wrote:

now its 40000 for TDS exemption limit

Is it confirmed. Any link will be helpful.

Proposal was made in interim budget to increase the threshold limit to Rs 40,000 in Feb’19. But was it actually implemented?

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karthi4052752 wrote:

Yes, bro i understand. But i am thinking of starting my savings with 15-20k a month with a small finance bank giving 9% interest. That is why i wantes ti clear my doubts. It is 40k a year now bro for the taxabke interest income

the 40k limit is for TDS by bank. however, FD interest is fully taxable and if you are a tax payer, you are required to add the full amount in your IT return and pay tax as per applicable rates.
if you are in 20% bracket, the 8% FD interest becomes 6.40% after tax.
liquid fund returns are also fully taxable if taken within 36 months.
interest on savings account on the other hand is tax free upto 10k per year. many of the banks now offer interest upto 7% in savings account.

so depending upon the amount involved, as long as the interest amount is less than 10K, keeping the money in savings account may actually give more return for someone who is already a tax payer.

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panchabhut wrote:

the 40k limit is for TDS by bank. however, FD interest is fully taxable and if you are a tax payer, you are required to add the full amount in your IT return and pay tax as per applicable rates.
if you are in 20% bracket, the 8% FD interest becomes 6.40% after tax.
liquid fund returns are also fully taxable if taken within 36 months.
interest on savings account on the other hand is tax free upto 10k per year. many of the banks now offer interest upto 7% in savings account.

so depending upon the amount involved, as long as the interest amount is less than 10K, keeping the money in savings account may actually give more return for someone who is already a tax payer.

What I like about your posts are correct information + easy simple plain english terms to understand. Keep up the good work ok_hand

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image wrote:

Is it confirmed. Any link will be helpful.

Proposal was made in interim budget to increase the threshold limit to Rs 40,000 in Feb’19. But was it actually implemented?

they had proposed and that interim budget was passed too

see this on yes bank website

Important Points:

TDS:As per section 194A of the Income Tax Act 1961, TDS at the applicable rate shall be deducted, if the interest exceeds the prescribed limit ( per Customer) as mentioned in the Income Tax Act, 1961 and Income Tax Rules as amended from time to time . The existing TDS rates and prescribed limits would be displayed by the Bank on its website.TDS will be as per Income Tax rules, currently TDS is deducted when interest payable or reinvested per customer per branch exceeds INR 40,000/- in a financial year and for senior citizen interest payable or reinvested per customer per branch exceeds INR 50,000/- in a financial year

https://www.yesbank.in/personal-banking/yes-ind...

for proper confirmation bank people will be able to clarify

Pada
Deal Lieutenant
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panchabhut wrote:

the 40k limit is for TDS by bank. however, FD interest is fully taxable and if you are a tax payer, you are required to add the full amount in your IT return and pay tax as per applicable rates.
if you are in 20% bracket, the 8% FD interest becomes 6.40% after tax.
liquid fund returns are also fully taxable if taken within 36 months.
interest on savings account on the other hand is tax free upto 10k per year. many of the banks now offer interest upto 7% in savings account.

so depending upon the amount involved, as long as the interest amount is less than 10K, keeping the money in savings account may actually give more return for someone who is already a tax payer.

i am actually thinking of opening an fd/rd in my wife’s name,, who has negligible income. is that worth?

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karthi4052752 wrote:

i am actually thinking of opening an fd/rd in my wife’s name,, who has negligible income. is that worth?

depends on the amount to be invested
unless it is her own money, the provisions of clubbing of income is applicable between spouses and her income, earned from your money, is taxable in your hands. so legally, you are bound to report and pay tax.
but for small amounts, even if you do not report, nothing much is expected to happen.
however, is she is having her own income, even if below the tax limit, and is filing separate return and the amount to be invested comes out of that, then not an issue.

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