Fixed Deposits

Debt MFs investing in quality papers and having average maturity of three-five years are good bets

Experts feel debt MFs will be more relevant in a falling interest scenario and work well for those who aren't sure about their investment horizon

Industry expects inflows shrinking in the medium to long-horizon debt funds

If the proposed amendment to the Finance Bill gets cleared, investments across durations will be taxed as STCG

Number for 11 months stands at 3.7 mn against nearly 10 mn last year

While the debate will continue about the benchmark rate to calculate real interest rate, both for the lenders and the savers, shouldn't all rates be higher than the rate of inflation?

Additionally, for FDs maturing between two and three years, the interest rates have been increased by 25 bps to 7% from 6.75%

Consider laddering to ensure liquidity and to avoid reinvestment risk

One of the country's largest NBFC Shriram Finance Ltd plans to grow its FDs from the current Rs 32,000 cr and talks are on to raise long term funds from international markets, said Vice Chairman

Kotak Securities sees Nifty50 at 18,385; rising FD rates could attract investment

Lock into one-two year FDs and continue laddering, say experts

However, corporate deposits are generally riskier than those offered by large bans; debt funds offer attractive returns in above 3-year tenure

Revised rates applicable on fresh deposits and renewals

The city-based Punjab National Bank (PNB) on Friday announced a special fixed deposit scheme for 600 days, offering a higher interest rate up to 7.85 per cent per annum. This special rate of interest scheme has come to effect from October 19, 2022. "The bank is offering higher interest rates up to 7.85 per cent per annum," it said in a release. The scheme is applicable on single deposit term deposits below Rs 2 crore for senior (60 years and above) and super senior citizens (80 years and above). Bank's domestic term deposit of 600 days (callable) offers 7 per cent interest rates and 600 days (non-callable) yields 7.05 per cent per annum. Non-callable deposits are those with no option of premature withdrawal. For senior and super senior citizens, the rates range from 7.50-7.85 per cent. "Our aim is to offer the best-in-class schemes to our valuable customers and we are pleased to offer a higher interest rate to consumers so that they earn more on their saving. For further ease, o

While you may begin allocating to them, keep some powder dry as rates could rise further

Apart from the special deposit scheme, Bank of India has raised interest rate on its existing 555-days fixed deposit scheme to 6.30 per cent

The YTM of most debt funds tops 6.5%, indicating that they can at least do better than FDs in the near future

Revised rates will be applicable from October 07, 2022.

If you don't have a surplus, opt for higher EMI rather than longer tenor

With the domestic economy looking ripe to shine despite a possible global recession, analysts recommend investors look at investing a bulk of their investable surplus in equities