By November-December 2014, investors should also look at debt funds.
Borrowers who were hoping for lower interest rates on their home or car loans might be in for some disappointment.
Sadly, so will lending rates. Do not hurry to put all your money in existing offers.
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Indian households put bulk of savings in bank deposits and insurance; the returns are minimal. If you're part of this, change.
Getting locked into instruments before the new regime kicks in would be a good strategy.
Bonds are an excellent diversification tool for those looking for stability and tax-saving. But they also carry certain risks. It is advisable to find out the reputation of the borrower as well as your risk appetite before investing.
Companies are reactivating their dormant fixed deposit schemes by realigning their interest rates with the market following the footsteps of the lenders. The Reserve Bank of India has raised its benchmark interest rate to 8.5 per cent - the highest in more than six years - to stem inflation, forcing the banks to raise their prime lending rate to as high as 15.5 per cent.
ICICI Bank, the biggest credit card issuer, has made it conditional for some of the credit card applicants, who do not meet the bank's eligibility criteria, to open FDs under a scheme called Fixed Deposit Instant Credit Card.
Here's what you always wanted to know about investing your money in bank fixed deposits.
Anil Rego, CEO, Right Horizons, answers your personal income tax queries
Anil Rego, CEO, Right Horizons, answers your personal income tax queries
Interest rates on bank FDs have started coming down and rates on other fixed-income products will also decline. Investors should lock in to instruments offering higher returns.
Make the most of the income that you earn by invest the money in the right instruments. The advantages of starting early and investing right cannot be overstated, says financial planner Harshad Chetanwala.
First, it is important to gauge the financial strength of the bank. Second, the period of the deposit is vital. Often, a higher rate of return is available for specific time maturities like 10 per cent for 360 days and so on. Third, the amount is important. In most cases, if the deposit is above Rs 15,00,000, the bank offers a higher than normal rate of interest. Fourth, since there can be a big difference in the various rates of interest being offered, read the fine print.
Depending on your liquidity requirement, invest in the right debt instruments.
In the past two years, investors in gold have lost money.
With real estate -- NRIs's favourite investment vehicle in the past -- unlikely to do well in the near future, there is a strong case for NRIs to shift to equity and debt mutual funds, says Prateek Mehta.
Risk-averse investors must now look for investment options that can give them that extra return, a role that was until now played by FMPs and FDs.
Tax deductions and prioritising their sequence will help you streamline your investments for efficient tax saving.
Children have to get into the role of advisors to help parents steer their retirement funds in the right direction
Even if interest rates go down, they may continue to offer better returns than fixed deposits.
The steady increase in Indian interest rates is making bank deposits a popular investment option among the Gulf-based Non-Resident Indians.\n\n
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
High volatility in the stock market coupled with falling inflation has brought back fixed deposits as an attractive investment avenue for the investors who are looking for fixed returns.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
Scams happen with high regularity because the price of getting caught is insignificant. Aggrieved investors run from the police to already clogged courts to find redress for issues for which financial regulators have been specifically set up. For over 3,750 years we have known what to do, but we don't do it, observes Debashis Basu.
If a fixed deposit is the instrument which suits your profile, go ahead and get invested; but ensure that the downsides are reduced to the extent possible.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
The general nervousness because of the IL&FS default will prevail in the system for now.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
While planning for retirement, the key is to let your money be idle, says Amar Pandit.
Besides return and risk, investors also need to weigh the liquidity of the instrument they are putting money in
'I have been advising investors since the last couple of months to at least take their capital out.' 'Most of the people have made 50-60 per cent in the market, if not more, they must at least take their capital out.'
The chief minister assured the family of all the possible help and also met the two daughters and consoled the family promising strict action against the guilty.
Every financial plan needs to be tweaked periodically.
Higher interest rate will be payable to FDs of over Rs 1 cr.
Else, repent when you reach your golden years
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