Nerevarine
Incarnate
Bajaj Finance has 7.5% interest on FD for 3 years or more.(Groww app)
It is the highest I have seen so far.
It is the highest I have seen so far.
TheSloth
The Slowest One
Isn't is loss for them to give such high returns?
Nerevarine
Incarnate
Why ? its a 3+ year binding, if you withdraw prematurely before 3 months, you get no interest, and 6 months plus if you withdraw you get reduced interest rate (5.5%).
I think its perfectly reasonable for them to offer 7.5%
TheSloth
The Slowest One
Then why rest of the major banks like ICICI, HDFC are offering only around 5.5%? Higher interest are offered by Indusind, IDFC, RBL, DCB banks which are not as big as major ones. Hence my doubt, how are these guys earning profit. There has to be some catch.
Nerevarine
Incarnate
I am not fully literate on this but I believe because they may want to capture market share, they provide attractive interest rate so they will have an early boost to capital. Established players do not need to worry about growth.
Also about risk, I think both above options are insured by RBI for UpTo 5L. But read the fine print yourself to get an idea.
Also about risk, I think both above options are insured by RBI for UpTo 5L. But read the fine print yourself to get an idea.
Zangetsu
I am the master of my Fate.
*support.zerodha.com/category/tradi...rrowing/articles/what-is-slb-and-how-to-avail
@TheSloth There is no better option than bank FD & savings acc for 3-4 months duration.
@Nerevarine What you call Bajaj Finance FD is actually more like "corporate bond" & the reason they(& not just bajaj finance) have higher interest rates is because they are basically borrowing from you instead of banks which will charge them higher interest rates for corporate loans. Even though bajaj finance is quite big but that does not change the fact that all such corporate bonds/FDs are subject to market risk with zero guarantee. Smaller banks follow a similar logic & offer higher interest rates because it is cheaper to raise money to lend from people compared to other sources which means more profit for bank when they lend this money to companies/people. Big established banks don't need to offer higher interest rates on savings/fd because their brand name is enough to attract money from people.
Damn. I don't know why I don't notification from this thread. Missed conversations since Nov last year 
Anyway, it was so heart warming reading the story of rockfella. (This.)
Also an update on stepping foot in the US market:
So I was tracking tech sector of US market since this year start, and since valuation was too high, I was patiently waiting for market to correct.
In June I got the chance, seeing that market was down more than 20%, I decided to enter.
Using Kuvera and Vested, I transferred Rs 58201 into SBM account, which got converted into USD 739.76. (Exchange rate: Rs 78.67 / 1 USD)
I then started SIP for 6 months in INVESCO NASDAQ 100 ETF (QQQM fund) which is the index fund for technology sector in US.
So far I it has invested $371.11 in the market, and is 6.77% up.
Just wanted to document my journey in US market.
Anyway, it was so heart warming reading the story of rockfella. (This.)
Also an update on stepping foot in the US market:
So I was tracking tech sector of US market since this year start, and since valuation was too high, I was patiently waiting for market to correct.
In June I got the chance, seeing that market was down more than 20%, I decided to enter.
Using Kuvera and Vested, I transferred Rs 58201 into SBM account, which got converted into USD 739.76. (Exchange rate: Rs 78.67 / 1 USD)
I then started SIP for 6 months in INVESCO NASDAQ 100 ETF (QQQM fund) which is the index fund for technology sector in US.
So far I it has invested $371.11 in the market, and is 6.77% up.
Just wanted to document my journey in US market.
Good but start preparing how to file your itr next year because now you own "foreign assets" meaning you will need to fill all those "foreign asset schedules" & "DTAA schedules" even if it is just a few dollars.
Even this year filing ITR was tough since it was my first time declaring trading and stuff. I will manage next year somehow.Good but start preparing how to file your itr next year because now you own "foreign assets" meaning you will need to fill all those "foreign asset schedules" & "DTAA schedules" even if it is just a few dollars.
Third party tax filing sites such as cleartax makes it easy to file.
Also I don't think I will be redeeming my US investments anytime soon to incur taxes.
That's the hassle, even if you don't redeem anything, just by virtue of owning "foreign assets" you will have to fill some extra schedules.
omega44-xt
Gear up ...
I think the RBI insurance in case of bank collapsing is 5 lakhs now, so keep 5 lakh 1 rupee in the account & you should be fine.
thetechfreak
Legend Never Ends
I don't want to put my money in a bank with the name "Mauritius" in the title irrespective of RBI policy
SaiyanGoku
kamehameha!!
SBM aka State Bank of Mauritius also has some Indian branches(I think less than or around a dozen) which operate under the same RBI rules as any other scheduled commercial bank in India.
Many small finance banks like Equitas are giving 7% interest rate over 5 lakhs & it is always incremental amount(aka for a balance of 5 Lakh & 1 rupee you get 7% interest only on 1 rupee). All SFBs are also same as any scheduled commercial bank & have 5 lakh depositor money insurance per pan number. Btw this 5 lakh insurance only comes into effect when RBI declares a scheduled commercial bank as bankrupt which it hasn't done since India's independence(only 3 scheduled commercial banks have failed since independence, GTB acquired by Oriental Bank, Yes Bank restructured via consortium of banks led by SBI & Laxmi Vilas Bank acquired by DBS). In all these 3 cases depositors money remained safe without any limits with only issue being money getting stuck for 3-4 weeks.
@omega44-xt
*en.wikipedia.org/wiki/Small_finance_bank
All SFBs are given license by RBI after thorough checks & after a certain period they are regulated by RBI in same manner as any scheduled commercial bank in India. State Bank of Mauritius is not a SFB, it was a foreign bank allowed by RBI to open branches in India just like other foreign banks like HSBC, Standard Chartered etc but in 2018 RBI allowed license to SBM along with DBS Bank to operate via their wholly owned subsidiaries incorporated in India which is why DBS bank was allowed to buy Laxmi Vilas Bank(a foreign bank cannot buy any Indian bank).
*rbidocs.rbi.org.in/rdocs/Content/pdfs/71207.pdf