This article summarizes the latest fixed deposit rates offered by the banks. The list provides only the five banks for each category. Fixed deposit is one of the ever green investment option for most of the investors. It is most safest investment compared to other equity related investments. If you are not ready to take risk and happy with the moderate return, then fixed deposit would be the right option. In the current scenario, fixed deposit rates or not in the peak. Last week RBI has reduced the key policy rates. Last week one of the leading bank in India, Canara Bank has increased the fixed deposit interest rates. Following that, many banks are planning to change the interest rates of the deposit. Following table represents the latest interest rates offered by the banks.

• 51 Tips for Saving Income Tax

In my earlier articles I have published many articles related to the fixed deposit and the tax savings options in the fixed deposit. If you are new reader to this blog, here I would like to summarize few of the popular posts which would be useful you to make the decision. For example, TDS is one of the most debated topic in the fixed deposit investment option. If you are investing the bulk amount into deposit, then you must be prepared to pay tax for the income arise out of you deposits. The following are the articles which provides the direction to save tax on your deposit:

• Minimizing TDS on your fixed deposit
• Top 6 Rules for TDS on Fixed Deposit
• What you should know about Form 15g and Form 15H?

The above articles would have provided the sufficient information on TDS on FD and how you can save them by smartly investing on FDs. In the same way, you can use fixed deposit for the tax savings:

• Tax Savings on Term Deposit under Section 80c
• Interest on Tax Savings Term Deposit
• Tax Saving Fixed Deposit u/s 80C

If you have any questions related to investing on the fixed deposit, please feel free to write in the comments section. You can subscribe here to get the latest information on fixed deposit rates and other tax savings option for your investments. Thank you for reading my blog!!

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If your only source of income is interests on bank fixed deposits, impact on the Tax Deducted at Source (TDS) will be more if you are not managed the TDS efficiently. TDS is the tax deducted at the time of paying the income to you. It is applicable to the salaried employees, bank fixed deposits, rental income, etc. In the above list, TDS on the bank deposits are the one where you can manage efficiently to minimize your loss on the income. In our blog we have published list of articles about the TDS and how to manage it. So, this blog post will be a remainder of the previous posts with few new points about the TDS.

TDS on Bank Deposits

If you have fixed deposits on your bank account, the interest income coming out of your deposits are taxable under the head other incomes. When you are submitting the income tax returns, it is your responsibility to add all the interest income and pay the tax. Note that, interest earned on your savings bank account is taxable.

also read:

• Top 6 Rules for TDS on Fixed Deposit
• What you should know about Form 15g and Form 15H?
• What is Form 16?

How much tax is deducted on the interest income?. If your interest income on a specific branch exceeds Rs. 10000 for a financial year, 10% of the amount will be deducted as the TDS. This deduction will be levied while making the interest payments. If you are not submitted the PAN card with your fixed deposit account. 20% of the amount will be deducted as the TDS.

• 51 Tips for Saving Income Tax

For the tax calculation, total fixed deposit on the same branch will be taken into the consideration. If you deposit your savings in the different branches of the same bank, each branch will be calculating separately for the TDS deduction. It is one of the way to avoid TDS.

Learn about form 15G and form 15H

If your total income is below the tax slabs, then you need not pay any tax to the govt. What if your bank is deducting the tax on interest accrued  on  your fixed deposit. The reason is bankers don’t have the details about your taxable income, so they simply deduct the tax if you are not providing any extra documents for their consideration.

If you are senior citizen and your total income is under the tax slabs, submit form 15H to avoid any tax deduction. Others can submit the form 15G to avoid the TDS. Form 15G and 15H has to be submitted start of the every financial year. Note that, this must be submitted for the every financial year. If you forgot to submit the documents, TDS will be deducted.

In some occasions, tax is deducted even after you submitted the forms. It is because the bankers are not processed your documents. Then you have to claim for the refund process. Instead of that, depositing in the different branches makes sense when you are not under the tax slabs.

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Introduction

After the rigorous cycle of increase in the policy rates by Reserve Bank of India (RBI), debt instruments got more lucrative for the investors who are looking for the safe place to park their money. Thanks to the inflation which is making the mandatory requirement to increase the key policy rates. A Steep increase in the key policy rates dent the huge liquidity enjoyed by the banks and they have to increase the interest rates to collect the money from the public. This article explains the current interest rates on the fixed deposits of few banks and possibility of the further increase in the interest rates. If you have any doubts, please post it in the comments section. Subscribe to our future articles here.

Is it good time to open the Fixed Deposit accounts?

Yes. This is good time if you are looking for opening the fixed deposit accounts in the banks. The interest rates are almost in the peak, there is little hope on the further increase of the rates. We can expect the maximum 0.50% increase in the interest rates on the fixed deposit instruments. There are few banks offering the 10% p.a. on fixed deposits for 1-2 years and most of the banks increased the rates to 9.25 – 9.75% which will give the decent return compare to the other debt instruments like PPF, Post Office Savings, NSC, etc. If you are looking for a good time to deposit in the fixed deposit, please use this opportunity to take the benefits.

Banks offering High Interest Rates

The following is the table provides list of banks offering the high interest rates while writing this article.

• Senior citizens would get 0.25 – 0.50% more interest rates.

Bank Deposits Vs Company Deposits

Not only the banks offering the deposit schemes to the public. Nowadays many companies and non-banking financial institutions offering the fixed deposit schemes to collect the money. Normally the interest rates on the company fixed deposits are higher because the risk is higher then the bank fixed deposits. You need to look into the following things while choosing a corporate fixed deposit:

• What is the rating given to the company’s fixed deposit scheme. There are credit rating agencies rate the safety of the investments based on the number of criteria.
• Company is issuing the fixed deposit to raise the money for its operations, find out the liquidity of the company and its financial strength to repay the money at the time of maturity. It is very common that investors have issues on getting back their principal amount.
• Find out where you need to approach them if you want to close the FD and get the money back. Unlike banks, companies not operated every where in the country, it is better to have the proper contact person.
• Read the complete terms and conditions. Whether they allow the pre-close of the fixed deposit before the maturity.

Better than other investments

The following are the list of other debt instruments with interest rates:

Looking into the above debt instruments, the current rates of the fixed deposits are more attractive. It would be good idea to park your money in the fixed deposit rather then above investments.

Summary

I hope this article would be useful for you are looking for the time to invest in the fixed deposits. Since the stock markets are falling down and there is no good investments options, the fixed deposit investments looks more attractive. This will not continue for long time, when RBI start reducing the key rates, the fixed deposit rates will start decrease. Utilize this opportunity and invest your money. If you have any thoughts, please post it in the comments section. Subscribe to our future articles here.

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As we all know that if you are withdrawing the money from the fixed deposit account , the rate of interest will be reduced as the penalty for premature withdrawal. This penalty would be different from the each bank based on the tenure of the fixed deposit and how long you continued the fixed deposit with that bank. In most of the banks, the penalty will be 1%. For example, if the interest rates on the fixed deposit is say 10% for 5 years tenure, you are withdrawing after three years, the interest rates calculated will be 9% (10% minus 1% penalty). In the Non Banking Finance Companies (NBFC) reduce 2% as the premature withdrawal.

• SBI Fixed Deposit Interest Rates
• Fixed Deposit for Monthly Income
• Invest in Fixed Deposit

But, State Bank of India (SBI) will not charge any penalty if the fixed deposit is up to 90 days.  The current interest rates for 90 days fixed deposit is 7% at SBI. This would be very useful for those who want to put their money in the short term. For example, instead of keeping your money in saving bank account with less return, it is better to keep in the fixed deposit.  Also, after 90 days the premature penalty would be 0.5% only. It has been reduced from 1% earlier. This is the good move from SBI to benefit the customers.

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Mahindra Finance has revised the fixed deposit interest rates with effect from 24th May, 2011. It has the advantage of highest rating for the safety of your investments that is FAAA. Earleir I have written about the Mahindra finance fixed deposits. The following are the revised interest rates:

If you are interested in opening mahindra finance fixed deposit, please submit your details here.

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Last week Mahindra Finance has increased the interested rates for its fixed deposit schemes. Aftre comparing with many of the corporate fixed deposits like Tata Motors, Mahindra Finance is paying the highest interest rates from the fixed deposits. The following is the table shows interest rates for different tenure:

If you want to apply for Mahindra Fixed Deposit Scheme, please submit your details. (Get Free Financial Planning from TPI)

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Do you have fixed deposit account with bank?. If yes, then you can list down the reason why you have chosen the fixed deposit over other investment schemes. The common reason would be the safety on bank deposits. The known fact is that, the bank deposits offer very low interest rates compare to any other investment schemes. That too with the soaring inflation (above 15%), fixed deposit option seems to be less profitable. The purpose of this article is to explore the fixed deposits option with the companies. The main concern about the fixed deposits on companies is safety on their investments. Here I will write down all the details about the corporate deposits and how you can choose the most secured company. If you have any doubts, please post it in the comments section. Subscribe to our future articles here.

Related Articles on Company Fixed Deposits

• Tata Motors Fixed Deposit
• Mahindra Finance and Tata Motors Fixed Deposit
• Mahindra Finance Fixed Deposits
• Unitech Fixed Deposit Schemes

Remember These Points

The following are the key points to consider before choosing any corporate fixed deposits.

• You must know the about the company which you are depositing money. For example, if you are investing in Tata Motors, we know that it if good company.
• At least that company should have run the business for 20 years
• Check the history of the company, how they have paid the principal and interest to the investors.
• For the past five years, that company should have been earning net profit.
• Should have good rating for that company.
• If that company is list
• Check if the company is listed in the stock exchanges.
• If you can not decide yourself, then consult with the financial adviser.

What is Fixed Deposit and Cumulative Deposit?

There is two types fixed deposits.

• Fixed Deposit
  • In the fixed deposit, you will get the interest money on periodic time, like monthly, quarterly, half-yearly or yearly. The deposit amount will be the same.
• Cumulative Deposit
  • In this category, interest amount will be added into the principal for specified period. It can be monthly, quarterly, half-yearly or yearly. The effective rate for the cumulative deposit will be higher than the normal fixed deposit. For example, if the interest rates on cumulative deposit is 8%, then when you are receiving the money after three years, the effective rate will be higher than 9.5%, it depend on the cumulative period.

List of  Company Fixed Deposits and Rating

Below are the table indicates few of the popular company fixed deposits and its rating. Also it indicates the risk factor in the last column.

Systematic Savings Plan (SSP)

This year HDFC has launched Systematic Savings Plan(SSP).  The First Ever Variable Rate Installment Deposit Plan. It says

It is a monthly savings plan, where one can deposit a fixed sum every month to accumulate a larger capital for future needs. This plan will be available February 3, 2010 onwards to all resident individuals in select Indian cities where ECS facility is available.

You can read more details about the scheme here.

Don’t put all your money in one place

It is one of the important point to consider while investing your money. The good practice of investment is to diversify your portfolio with different options. Don’t put your all the money into the same investment scheme. Try to identify the different schemes and invest your money.

Non-Resident Indian (NRI)

There are many rules associated on receiving the investment from NRI. Because of these restrictions, many companies don’t accept the investments from the NRI. If they want to invest, they can do it through NRO account only. That too they have to declare that the money is not earned from outside India. Bank deposit is the better for NRIs.

Can you trust Corporate Deposits?

Yes. 100% you can trust the good company deposits. There is more security for your investment. Read all the points I have mentioned in the article and decide yourself.

Summary

I hope this article would be very useful for those who want to choose the best company fixed deposit schemes. What I have given in the article is general idea on the company fixed deposits. Before you start the investment, try to collect the relevant data on that company and make the decision. If you have any doubts, please post it in the comments section.

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In my earlier article I have posted about the compulsory submission of the PAN details to avoid the higher deduction of TDS for your fixed deposit.This new rule is with effect from the 1st April, 2010. Banks started informing about the new rules to the customers. Today I got the mail from HDFC bank about the rules and rates ar TDS will be deducted as follows:

“As per section 206AA introduced by Finance (No. 2) Act, 2009 wef 01.04.2010, every person who receives income on which TDS is deductible shall furnish his PAN, failing which TDS shall be deducted at the rate of 20% in case of Domestic deposits and 30.90% in case of NRO deposits”

Please further note that in the absence of PAN, Form 15G/H and other exemption certificates will be invalid even if submitted & penal TDS will be applicable.

In case your PAN details are not updated with the bank, please visit nearest HDFC Bank branch to submit/confirm the same at the earliest.

To avail TDS benefit on specific Fixed Deposits that you hold with the bank, you are requested to submit the relevant form 15G/H if applicable to you. A fresh form 15G/H needs to be submitted for the FY 2010-11. Kindly visit your nearest HDFC Bank branch to submit the same.

I hope this post will be useful for those who are maintaining the fixed deposit accounts. Submit the PAN details and avoid losing the excess tax.

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In this article I will be writing about the interest rates for fixed deposits in the coming months. As we have noted earlier that RBI had increased the CRR ratio by 0.75 points. This reduce the about Rs.35000 crore money  from the liquidity. It is expected to be increase in the banks fixed deposit interest rates. This article lists some of the announcements from the banks to increase the fixed deposit rates. Subscribe to free email updates.

Bank Fixed Deposits

The deposit rates increase started in the last week of January and till now more than 20 banks have increased their fixed deposit rates. I have written about the HDFC banks new deposit rates. The new rates vary based on the term of the deposit. Most of the rates hikes are done for the period of more than three years.

HDFC bank and Kotak Mahindra have hiked the rates for three year deposit 0.75 points. Majority of the private banks and foreign banks have increased the rates and few public sector banks also increase the rates. There is few banks have not changed the rates but will update it soon.

Company Fixed Deposits

Traditional bank fixed deposits offer low interest rates compare to the company fixed deposits. That is the reason why most people chose company fixed deposits. It is suitable for the short term like three years because risk involved in this deposit is high compare to safe deposits in banks. Some of the popular company fixed deposits Mahindra Finance, Tata Motors, Unitech, etc.

Till now there is no interest rates hike in the company fixed deposits. We are expecting the rate hike in the near future. Otherwise people will loose the interest in company fixed deposits and will chose the banks as their favorite avenue.

Summary

I hope this article will be useful for those who are interested in the safe investment options like fixed deposit. We can see the rates increase from all the banks and companies to get investment from the public.

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India’s second largest private sector bank HDFC Bank has increased the fixed deposit rates by 150 points. Earlier I have posted about the CRR Ratio hike by the Reserver Bank of India(RBI). As I have explained in the post. CRR hike will reduce the liquidity of the banks and will tighten the money lending to the customers. This process will force them to borrow money from the public. The only way to attract the public deposits is increasing the deposit rates. We can expect the other banks also will follow the HDFC bank. The following is the updated interest rates:

• ** Only Senior Citizens / Retired Personnel (60 years and above) who are Resident Indians are eligible. The special rates are applicable only for INR deposits.
• *** The FD rate applicable for a monthly interest option will be a discounted rate over the standard FD Rate. Please contact the nearest Branch for further information.
• ****For interest rates on Fixed Deposits for Rs. 15 Lacs and above, please contact your nearest HDFC Bank branch.

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In this article I will be writing about the tax savings fixed deposit. It is one of the popular component for the investors because of the guaranteed return amount. As of now the interest rates are not much attractive hence it losses the shine. This article presents the important facts about the tax savings fixed deposit. If you have any doubts, please post it in the comments section. Subscribe to our free newsletter.

Tax Saving Fixed Deposit u/s 80C

Section 80C provides the fixed deposit option for the tax exemption. The following are the key points regarding the tax saving fixed deposit u/s section 80C:

• Top 5 Rules for Fixed Deposit Investment
• Minimising TDS on your fixed deposit

1. It has the lock-in period of 5 years. depositing under this scheme, you will not be able to take the money before five years.
2. The interest rates for this scheme will be vary for each bank.
3. Tax savings fixed deposit is available only through banks. You can not open it with company fixed deposit product.
4. Minimum of Rs.100 is deposited.
5. Maximum of Rs.100000 is exempted u/s 80c for one financial year.
6. If you are depositing in this scheme, there will not be many other benefits which is allowed for the normal fixed deposit
   • No Partial/Premature withdrawal allowed.
   • Sweep-in not allowed.
   • No Over Draft facility allowed.
7. If you have the joint account, the deductions u/s 80c will be allowed only for the first account holder.
8. The interest income for this fixed deposit is taxable.

Summary

I hope this article will be useful for learning the basic ideas about the tax savings fixed deposit. Nowadays, the interest rates are not good, so it is not advisable in choosing the fixed deposit. If you have any doubts, please post it in the comments section.

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Tax Savings Fixed Deposit

I have written posts about the tax savings fixed deposit and why the fixed deposit is good for the monthly income. This will be suitable when the interest rates of the fixed deposit is high. In the recent times, all the banks have reduced the fixed deposit interest rates very low and it is some where between 6% to 7%. Only few banks offering the interest rates above 7%. I am getting the queries from the readers about the good interest rates for the fixed deposit scheme.

Article on Fixed Deposit:

• How to avoid TDS on Fixed Deposit?
• Top 5 Rules for Fixed Deposit Investment
• Fixed Deposit for Monthly Income
• Tax Savings on Term Deposit under Section 80c

PNB Tax Saver Fixed Deposit

Punjab National Bank(PNB) offer 8% interest rates for the tax savings fixed deposit. (In case of Senior citizen, 8.5%p.a.). Note that tax savings fixed deposit has the lock in period of 5 years. In that period you can not take loan from the fixed deposit. Income Tax will be deducted at the source. Note that, income coming out of this FD taxable as the interest income.

Documents Required for Opening Fixed deposit in PNB

1. Passport size Photograph.
2. Proof of Address.
3. Photocopy of PAN No.
4. Proof of age in case of Senior citizen.
5. Proof of having secured pass marks in last qualifying examination.

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In this article I will be writing about the fixed deposit scheme offered by India’s leading real estate company Unitech Ltd. The interest rates offered by this company is high compare to other company fixed deposits like Tata Motors and Mahindra Finance Fixed Deposit. Subscribe to our future articles here.

Unitech Fixed Deposit Schemes

You can get the application form here.

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SBI Reduced Term Deposit Interest Rates

SBI has reduced the term deposits interest rates effective from 9th November, 2009. The difference from the previous rates are varied from 0.25% – 0.50%.

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Introduction

In this article I am resenting a comparison char for the Mahindra Finance and Tata Motors Fixed Deposit Schemes. Many of our readers asking me about the difference between these two companies and which one is better. This article presents the chart which will give you the good idea about these two companies. If you have any doubts please post it in the comments section. Also subscribe to our future articles here.

Apply for Mahindra Finance Fixed Deposit (Get Free Financial Planning from TPI)

Mahindra Vs Tata Motors Fixed Deposit

From the above table you can get some idea about the difference between these two companies. I will point out some of the key points on these two companies in the below list.

• Tata Motors not offering 12 months scheme for any of the fixed deposit where as mahindra finance provide that option.
• Tata Motors cumulative half-yearlt, but mahindra finance annually.
• Both the schemes providing the 0.25% extra for the senior citizens.
• Tata motors provides monthly interest option if the deposit is above 1 lakh.
• Mahindra Finance  Interest payment half yearly on 30th September and 31st March only through ECS.
• If you look into the returns table, both the companies offer the same amount.

Summary

I hope this article will be useful to analyse these two companies fixed deposit schemes. My opinion is there is no big difference in these two companies, and you can invest any of these companies without any fear because they have good credit rating. Thank you for reading this article. If you have any doubts please post it in the comments section.

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Looking Back After One Year

We have crossed one year after starting this finance blog. It is last October when I hosted this blog with lot of fear whether I can post it regularly. Today I am happy to see the good growth of this blog and readers interest on the topic.

I love and Respect Readers

This blog receives lot of comments from the readers and I am trying to answer every comments in the blog and if I miss some of the comments unanswered I am sorry for that. There is many readers who are frequently posting the comments and I have good conversation with them.

There may be many readers who are just watching the conversation but not replying with their doubts. The intention of this post is to better know the readers and bring the silent readers to participate in the conversation actively.

Financial Knowledge is Must

When I am talking with my friends and co-workers, it very common that many people don’t have the enough knowledge on the financial planning and they just spend money without any proper planning. They don’t realize that they would have saved more money if they plan properly.

Awareness on financial planning is necessary for every one and it must be learned. Please make this your part time learning and save your hard earned money.

I want to Hear From You

In this post you just need to write in the comments following details:

• What is your Name?
• What is your Occupation?
• What is your Monthly Income?
• What is your Monthly Savings?
• What is your financial goal in the next five years?
• Why you are here?

I need this details to have close relationship with you to answer your questions. I am expecting our readers to actively participate in the discussion. Thank you for making this blog success!!!.

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In this article I will be writing about the feature Super Save and Sweep-In provided by the HDFC bank to its customers. I am writing this post with the details from HDFC bank. Also it is the response for our reader (Siva) posted in ask questions. His question is

HDFC bank offers sweep-in and super-saver facility .. Can you please explain about these .. Thanks Siva

Please read this article to know more about these facilities. If you like this article please subscribe to our articles.

What is Super Saver Accounts?

Super Saver accounts are like opening the Savings Bank and Fixed Deposit account together.  Many people know that when you are opening Fixed Deposit with tenure of 5 years, it is not good to pre-close the whole account for the urgent need of money which may be lesser than the Fixed Deposit account. For that purpose Super Saver Facility helps you to liquidate the money when you need with 2% higher interest rates. The following are the key points concerning Super Saver Facility:

• It is an over draft facility for the Fixed Deposit
• You can get up to 75% of the fixed deposit account as the Over Draft
• The interest rates for the borrowed amount will be 2% higher than the Fixed Deposit interest rates
• You can enable this facility for your Fixed Deposit by visiting the nearest bank branches.

What is Sweep-In Accounts?

Sweep-In facility also help you to utilize the Fixed Deposit, but without taking the overdraft on your fixed deposit account. The following are the key points regarding the Sweep-In facility:

• Linking the Saving Bank account and Fixed Deposit account.
• In case of short fall of amount in the savings account, use the sweep-In facility to with draw money from fixed deposit.
• The same interest rates will be charged for the remaining fixed deposit amount.
• The advantage of this account is you need not get the over draft or close the FD account to fulfill your needs.

Super Saver and Sweep-In Facility offered by HDFC Bank

As I have already mentioned, the sources for this article is taken from the HDFC bank and stats also applicable for the HDFC bank. The rates may be different for the other banks. If you are using the same facility in any other banks, please post it in the comments section.

Summary

I hope this article is very useful for many readers. If you have surplus amount in the savings account, please make it Fixed Deposit and use the sweep-in to fulfill your needs. Enjoy the high interest rates. Thank you for reading this article. If you have any doubts please post it in the comments section.

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In this article I will be writing about the different types of Non-Resident Indian(NRI) bank accounts and services. It is the most common query which I receive from our readers. So, I planned to write down one article explaining the details about the NRI bank accounts. I hope this article will be useful for who want to open the NRI accounts. If you have any doubts please post it in the comments section. Subscribe to our future articles here.

Types of NRI Bank accounts

There are many types of NRI banks accounts available. But, here I will be explaining only the most widely used and offered by the leading banks in India. The following are the three types of NRI bank accounts offered by most of the bank across India:

• NRE Savings/Fixed Deposit Account
• NRO Savings Fixed Deposit Account
• FCNR Fixed Deposit Account

In the following section I will look into the features and benefits of the each account in details. If I miss out any thing, please post it in the comments section.

also read:

• How NRI’s can invest in Indian share market?
• Invest in Share Market and Mutual Funds
• Book Review : 51 Income Tax Tips for Investors

NRE Savings/Fixed Deposit Account

The Non Resident External (NRE) Savings Account is meant for Indians residing abroad. It allows you to transfer foreign earnings easily to India.The following are the few important points regarding the NRE account.

• NRE account can be opened as Savings and Fixed deposit accounts.
• There is no tax on interest earned from these accounts. Also there is no wealth tax.
• That the above tax exemptions are available only for an NRE Account held by an individual and not for those maintained by OCBs (Overseas Company Bodies)
• The currency maintained in this account is Indian Rupee.
• Can open Joint account with any Non-Resident Indian. Cannot open Joint account with Indian Resident .
• You can easily transfer money to India.
• Nomination is allowed in NRE Accounts.
• Can not deposit Indian Currency in to this account.

NRO Savings Fixed Deposit Account

The following are the key points on NRO account.

• NRO account can be opened as the Savings or Fixed Deposit account.
• Currency maintained in this account is Indian Rupee.
• Can open this account with any Indian Resident.
• Interest earned in this account is 30% taxable and surcharge and education cess will be included. It is applicable for both savings and fixed deposit accounts.
• You can use this account to pay any bill and expenses in India.
• Enjoy the convenience of banking at any of our branches in India.
• Nomination is allowed in NRO Accounts.
• Can deposit Indian Currency in to this account.

FCNR Fixed Deposit Account

The following are the key points for Foreign Currency Non-Resident (FCNR) Fixed Deposit bank account:

• Earn Indian Interest Rates on your Foreign Currency deposits with our Foreign Currency Non-Resident Fixed Deposit.
• The entire deposit (principal and interest) is exempt from tax
• Open the deposit jointly with any other NRI
• Get an overdraft on your Savings / Current account against your FCNR Fixed Deposit
• Nomination Facility available
• Joint accounts with Indian Residents not allowed.
• Following currencies are allowed in this account:
  • US Dollars
  • Pounds Sterling
  • Euro
  • Japanese Yen
  • Australian Dollars
  • Canadian Dollars
• Can not deposit Indian Currency in this account.
• Minimum 1 year and maximum 5 years is allowed.

Summary

I hope this article will be more useful who are interested in opening the NRI bank accounts. If I have missed out any of the important aspect of the topic, please post it in the comments section. I know many of our readers are NRI and they already hold the NRI bank account. Please post your experience and thoughts on the NRI accounts. Thank you for reading this article. Soon, I will coming up with many NRI related articles. keep reading our articles.

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India’s largest bank SBI has announced that they are reducing the interest rates on all their domestic fixed deposit schemes by 0.25%. This is with effective from October 5, 2009.

“We have brought down term deposit rates gradually. Going forward, this will marginally improve our net interest margin. We have not taken a call on reducing our benchmark prime lending rate,” said a senior SBI official.

The maximum interest rate that SBI will offer is 7.50 per cent (currently 7.75 per cent) on a long-term deposit of eight to 10 years.

At the short end, a term deposit of 15-45 days’ maturity will earn 2.75 per cent (3 per cent).

Last month, the bank discontinued its 1,000-day term deposit scheme by merging its scheme of two years to less-than-three-years.

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HDFC Bank Fixed Deposit Interest Rates

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Introduction

TDS is the tax deducted at source. This tax tax is deducted in the different scenarios. There is a change in the rates applicable for TDS effective 1st October, 2009. Here I am presenting the list. If you have any doubts please post it in the comments section. Subscribe to our future articles here.

New TDS Rates

In the 2009-10 budget, there is changes in the existing TDS  rates and finance minister announced that the new rates will be effective from 1st October, 2009. The below table lists the important category and the rates for that. If you want to know about the TDS, please read What is TDS?

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Mahindra Finance Fixed Deposit

Earlier I have written about the mahindra deposit schemes and its interest rates. This blog post presents the table with latest interest rates for Mahindra Finance Fixed Deposit. Below this table I have posted the contact person for opening the fixed deposit with mahindra finance. If you have any problem please post it in the comments section.

Apply for Mahindra Finance Fixed Deposit (Get Free Financial Planning from TPI)

CUMULATIVE SCHEME

NON CUMULATIVE SCHEME

• *Senior Citizens/Shareholders/Employees will get an additional rate 0.25% per annum
• #Interest payment half yearly on 30th September and 31st March only through ECS.
• ** Compounded Annually

Do you want to apply for mahindra finance fixed deposit? Apply Now

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Few days back I have written about the revised rates for SBI’s 1000 days fixed deposit scheme. But, today SBI announced that they are planning to discontinue their 1000 days fixed deposit product.

From Tuesday, the scheme, which was offering 10.5 per cent annual interest in October last year, will be merged with the two-to three-year deposit scheme on which SBI will pay 7 per cent interest. Till recently, the 1,000-day deposits offered 7.25 per cent annual interest.

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The country’s largest PSU lender, State Bank of India, on Saturday reduced interest rate for deposits having 1,000-day tenure by 0.25 per cent to 7 per cent. The new rate will be effective from September 8, the bank said in a release issued in Mumbai on Saturday. Interest rates for deposits for all other tenures remain the same.

Update : SBI discontinue 1000 days Fixed Deposit

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