Best Interest rate on Fixed Deposit Account

ash.paul

Active Member
#21
Ash.Paul

Statutory Insurance is guarantee of principal of upto Rs. 1 lac in case of a bank default/bankruptcy...

For completely risk off investing, diversified bank FD's are the best bet, and co-op bank FD's a complete avoid. (There are cases of money being swindled off by promoters, who disburse depositors funds to themselves, and then join a political party. Nothing will happen to them - they are safe, and the money looted is given a warm welcome in the political party in this case, Pravin Darekar embezzled 123 odd crores and caused bankruptcy of Mumbai District Central Co-operative bank, joined BJP)



Why would one even think of investing in a co-operative bank for extra 1/2-1% return, when the whole principal amount is at risk?


The gauge or standard of safe entry would be PE (Price/Earning) ratios. With little downside, and a greater upside, one can easily beat the FD returns with a great sense of safety.

Also, if looking for returns, one can go back into history and invest a portion of savings in equity in times of panic and scare. This is the Year Avg returns based on PE Multiple :

PE RETURN

Upto 12 55%
Upto 15 28%
Upto 18 20%
Upto 21 06%
Upto 24 -9%
Above 24 -27%

The current PE for NSE is 23.63%



Am by no means advocating equity investments, just presenting facts...

Good luck.
Thank you once again.

Appreciate what you have said.

Well, Equities are not for me, which I have learned through the hard way, cannot keep up with the fast pace of market dynamics and forces which actually moves the market so quick, specially when the global economy is bit unstable in general in my humble opinion.

I used to believe greed is good but no thank you.

I prefer other alternatives which i have ventured and I have come to the conclusion that earning a 8-10 % annual return with minimal tax is a gold standard return for me and I am quite happy with that. The key for me is consistent compounding which many genius fail to incorporate into their investments.

All the best to you an every one.
 
#23
Please go in with nationalized banks and institutions such as SBI. Also one could look at the Parag Parikh Liquid Fund which invests solely in sovereign deposits.
 
#24
#25
Also while evaluating FDs, look at it from a compounding angle also. Bank FDs are usually quarterly compounding while pvt NBFCs compound annually.
 
#26
Which rates you honestly looking for here ? Something like 10% or what ? Indian banks do not pay that much, I know in some other eastern europe countries you may get even upto 15% interest rate and that is after taxes or so. Go figure that;)
 
#27
2 years old question .. but in post office there is a Monthly income scheme where u can get 8% and put that in RD in same post office so all will sum up to 10% and no tax too..
 
#28
2 years old question .. but in post office there is a Monthly income scheme where u can get 8% and put that in RD in same post office so all will sum up to 10% and no tax too..
All the interest rates work out more or less to the same thing. In ordinary FDs the interest is credited quarterly or half yearly and gets added to the principle.

One suggested route was Monthly Income scheme --> Mutual Fund SIP.
 
#29
All the interest rates work out more or less to the same thing. In ordinary FDs the interest is credited quarterly or half yearly and gets added to the principle.

One suggested route was Monthly Income scheme --> Mutual Fund SIP.
but i think we have tax benefits when go through postal MIS ( Monthly income scheme ) .
 

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