Skip to main content

Fixed Deposit Products

Best SIP Funds Online 


Once you decide to start saving money, what is your first stop? For most Indians, it is deposit products, thanks to their convenience and guaranteed returns. Many first-time investors who are not familiar with different types of financial products, such as mutual funds, also prefer these as an initial step.

Very senior citizens (whose need for funds are very near term), and those who are absolutely risk-averse also prefer deposit products. While these do not score high on real returns, there are investors who prefer deposit products. Here's a look at some of them. 

Savings account deposits

This is the most basic type of deposit if you have a bank account. The current interest rate is 3.5-7% per annum, depending on the bank and the amount invested.

This deposit also comes with clauses such as minimum balance requirement. A savings deposit account can be used to receive money and for the amount that you need for regular expenses, including loan instalments. 

Bank fixed deposit investments

Your money earns a higher interest in bank fixed deposits than it does in a savings account. The drawback of this deposit is that with it you have less flexibility than in a savings account. Plus, it comes with a pre-defined maturity date.

While investing in these, know that, usually, the lower the tenure of the deposit, the lower will be the interest rate.

The rates of interest also depend on liquidity and cost of fund requirements of the bank. The current interest rates on bank fixed deposits range between 3.5% and 7.5%, depending on the tenure. The tenure can vary between 7 days and 10 years. One good thing about these is that senior citizens get higher interest rates. Some of these offer tax benefit. Banks also offer variants of fixed deposits such as sweep-in facility where after a certain limit in your savings account, the money automatically moves to a fixed deposit. Bank fixed deposits work for people in the lowest tax bracket; those who are risk averse; and those who want guaranteed returns. 

Recurring deposit

This product allows you to deposit money on a recurring basis. Most banks offer this product. It usually works for people who don't have a lump sum amount to invest at one go but can deposit on a monthly basis. The interest rates currently range between 5.50% and 7.50%. It comes with a maturity period (6 months to 10 years). Like fixed deposits, if you withdraw your money from a recurring deposit before maturity, a penalty will apply or you may have to let go of the interest. In case there is a delay in paying the instalment, you will have to pay a penalty. This product works for those who are in the lowest tax bracket or first-time savers who want to inculcate the habit of saving regularly. 

Corporate fixed deposits

As part of the process of raising money, companies also issue fixed deposits. Usually, the interest rate on these is 100-200 basis points higher than bank fixed deposits; but they are also riskier. Currently, the interest rate on some of these is as high as 9.50%. Tenure is similar to that of bank fixed deposits. These deposits come with credit ratings—the higher the rating, the lesser the chances of default. Before investing here, do your due diligence on the company's fundamentals; there have been cases of default and even fraud. 

Products from Post offices: India post

India Post also offers multiple deposit products. The interest rate on savings deposit is currently 4% per annum, and minimum amount for opening one is Rs20. The recurring deposit in post office offers 7.1% per annum, which is compounded quarterly, and comes with a 5-year lock-in. The time deposit offers 6.8-7.6% for tenures of 1-5 years.



SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

For further information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

Popular posts from this blog

What is Electronic Clearing Service (ECS)?

  As the name suggests, it's an electronic process through which money can be transferred from one bank account to another. According to RBI, this mode is usually used for regular payments and receipts, like distribution of dividend, interest, salary, pension etc. This mode is also used for collection of bills for telephone, electricity, water, various types of taxes, payment of EMIs , investments in mutual funds , payment of insurance premium etc. There are two types of ECS , like most other banking transactions, ECS credit and ECS debit. An ECS credit is used by a bank account holder , usually a large company or an institution for services like payment of dividend, in terest, salary, pension etc. If your mutual fund pays you dividend to your bank account, of all probability it is being paid through ECS credit.ECS debit, on the other hand, is used when a company or an institution is getting money from a large number of people. For example if you are investing in a mutual fund sc...

WEALTH TAX

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 WEALTH TAX   WHAT CONSTITUTES WEALTH? For wealth tax purposes, "wealth" means property , urban land, car, jewellery , yacht, boat, aircraft and cash in hand in excess of Rs 50,000. CAUTION POINT | Do not think you will have an easy escape from wealth tax by transferring your `wealth' without consideration to your spouse or minor child. Such assets will also be considered as your wealth. HOW TO DETERMINE YOUR TAXABLE WEALTH Add the taxable value of the above assets (computed as per the detailed rules for valuation) owned by you as on March 31 (for FY 2014-15, it will be March 31, 2015). In case you sold your car during the year, it will not be taxable wealth. Deduct loans if any obtained by you to acquire any of the taxable assets from the value of gross tax out for at least 300 days in a...

Equity Savings Fund

Invest Equity Savings Fund Online   The best part about these funds is that they are subject to equity fund taxation and at the same time are structured like MIP like funds . This new category, equity savings funds , offer a little of everything. They allocate money to equities & equity related instruments, and fixed income. They aim to generate returns by diversification. Such funds invest in fixed income and arbitrage to protect the investors from short term volatility and equity for capital gains. The best part of these funds is that they are subject to equity fund taxation and at the same time are structured like MIP funds.   MIP funds however are subject to debt fund taxation. Investors Equity savings funds are suitable for the following: First time investors who seek partial exposure to equity with less volatility and greater stability Investors seeking moderate capital appreciation with relatively lower risk Those wh...

How to Pick Top Performing Mutual Fund Schemes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   How to Pick Performing Schemes  Funds that continue to stay in the top grade of performance over longer periods are the ones to bet on, advise investment experts   The mutual fund performance charts of the past few months make for an impressive reading. Funds across all categories boast of stellar returns. Sample this: The mid and small cap category has averaged 77 percent return over the past 12 months, with the best fund delivering a staggering 120 percent. The tax-saving funds also average an impressive 51 percent, including a fund which has soared 92 percent. Many of the table-toppers are funds of proven quality and track record. However, there are also schemes that are not that well-known. Some of these have rarely made it to the performance charts in the past, yet, of late, they bo...

8% Government of India Bonds quick guide

For those seeking comfort in safety of returns, the Government of India issued 8% savings bond once again comes to the fore. First launched in 2003, these bonds are issued by the government with a maturity of 6 years. The bonds are available at all times with specified distributors through whom you can apply to invest in them. Here is a quick guide to what the bond offers and its features to ascertain to check for suitability. What are Government of India bonds Government of India bonds are like any other government bonds with specified rate of interest. The rate is fixed at 8% per annum paid half yearly, or you can opt for cumulative payment of interest at the end of the tenure. You can buy these bonds from State Bank of India and its associates, other nationalized banks and some private sector banks such as HDFC Bank Ltd and ICICI Bank Ltd, among others. The bonds can be bought from the offices of Stock Holding Corporation of India as well. They are available in physical form onl...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now