Monday, 11 August 2014

7 Banks offering Fixed Deposit rates above 9.00% in India

Whenever we think of doing savings, the first thing that comes into our mind is Fixed Deposits. Because of its overwhelming features like safety of funds, security of money, guaranteed interest on deposits made, it has become a star for every eyes. And, do we expect anything else from it?

Yes, we do expect higher FD interest rates. This will probably help us sticking to a safer type of investments like FD’s, otherwise with lower interest rates, we would definitely try to explore some new sort of investments. There are some of the banks who renders more than 9.00% of FD interest rates and those are mentioned below.

11.  Saraswati CooperativeBank: It is a cooperative society bank founded in 1918, with an objective to serve the families and their dependents in case of need and contingencies like wedding, medical expenses, debt repayment etc. By fulfilling all its objectives successfully, it has been transformed into a full-fledged urban cooperative bank in 1933. It has marked a commendable growth since then, by providing all the facilities of a modern banking.
Fixed deposits offered by Saraswati cooperative bank marks for one among the highest rate of interest on it. It offers FD interest rate of 10.00% for 15 months for the investment of less than Rs 1 crore.

22. Shamrao Vithal CooperativeBank: This bank came into existence in 1906, in order to help the unfortunate members of the country at the time of need and to encourage the habit of savings among them. It has crossed number of milestones and now has flourished with almost all types of modern banking products and facilities.
Fixed deposit Interest rate offered by Shamrao Vithal cooperative bank is remarkably high i.e.9.50% for 500 days for investment of less than Rs 1 crore.

33.  Lakshmi vilas Bank: Founded in 1926, Lakshmi vilas Bank Ltd has got the license in 1958 from RBI to work as a commercial bank in the nation. Running over a platform of nearly 362 branches, it has spread its wings in almost all kinds of banking products and services, fostering a tremendous growth and excellence.
Fixed deposit interest rates offered by Lakshmi vilas Bank denotes Excellency for customer satisfaction and i.e. 9.50% for greater than a year and less than 2 years, for the investment of up to Rs 1 crore.

44.  South Indian Bank: With an objective of encouraging safe and secure system of savings and freeing the nation from the blood sucker money lenders, South Indian bank became a scheduled bank in 1946 and since then, crossing all its milestones with Excellency.
Fixed deposit interest rates offered by South Indian Bank is 9.50% for 400 days for the investment of less than Rs 1 crore.

55.   Development credit bank: Incorporated in 1930, Development credit bank has expanded a lot in terms of customer base, number of branches, no. of products and services and is successful in delivering state of art facilities to its customers.
Fixed deposit interest rates offered by Development credit bank is 9.40% ranging from 13 months to less than 24 months for the investment of less than Rs 1 crore.

66.  IDBI: IDBI was incorporated in 1964, under the Indian government. It was formed with an objective of providing financial services to the industrial sector and later on expanded its products and services for general public also.
Fixed deposit interest rates offered by IDBI is 9.30% for 500 days for the investment of less than Rs 1 crore.

77.   Central Bank of India: It was established in 1911 under Government of India, having a glorious 103 years of history, it has generated a remarkable growth and productivity for Indian Banking sector with new innovations in products and services.
     Fixed deposit interest rates offered by Central Bank of India  is 9.25% for 555 days for the investment of less than Rs 1 crore.

Monday, 4 August 2014

What are the Benefits of Fixed Deposit Policy?

A good investment portfolio comprises of a balanced bag of secured and risky investments. Although an investor can invest in capital market instruments for gaining high returns, they are more subject to market risk. For this reason, fixed deposits offered by financial institutions, like banks, are quite favorable for investors because of their guaranteed returns.
A fixed deposit, or FDs as they are generally known, is a financial instrument wherein the customer deposits his investments for a fixed tenure with the bank and earns a pre-determined rate of interest on it.

The fixed deposits have the following key features:
·         Fixed deposits offer a higher interest rate, which helps the individual save their surplus funds in an effective and secured way.
·         The rate of interest varies as per the period, the amount and the respective bank.
·         The period of fixed deposit is usually between 15 days to 10 years.
·         As the name suggests, this is a ‘fixed’ investment which implies that the withdrawal can be done only after the maturity of fixed tenure. Although, in case of an emergency, there is a feature to close the account prior to the maturity date. In such a scenario, the bank deducts 1% as a penalty from interest payable as on that date.
·         A fixed deposit receipt is given to the depositor, which he needs to produce at the time of maturity. In case the depositor is interested, the same deposit can be renewed further.

Benefits of Fixed Deposit
Bank fixed deposits have been one of the most favored investment avenues with all age groups in India. Below listed are the advantages of these deposits which make them so popular with investors:
  • ·         A safe instrument: Fixed deposits from banks are one of the safest instruments to invest as they are regulated by the Reserve Bank of India (RBI) and guaranteed by the Deposit Insurance & Credit Guarantee Scheme of India. This is the major reason why company FDs are not as safe as bank FDs because if the company goes bankrupt, the entire money could be lost as they are not covered under this regulatory body.
  • ·        Fixed deposits offer good liquidity: These deposits help in generating regular income in the form of interests. The depositor can also get loan facility (up to 90% of the principal amount) on these deposits from the bank.
  • ·         Fixed deposits help in the economic development of the country: These deposits indirectly help in the economic development by raising long term funds for banks which they can invest in high return projects. This cycle helps in increasing the overall profitability of the bank.
  • ·     Convenience: Bank fixed deposits offer great comfort and ease to an investor as they can save according to their need and budget. The investments can start from a very small amount of Rs. 100 with no upper limit on the same.

Bank fixed deposits have been one of the best traditional strategies to preserve one’s capital among all age groups and profiles. Banks are constantly adding new benefits and schemes to the existing plans to make them more lucrative for customers so that they can use this as a primary source of investment.