senior citizen
12:20
Showing posts with label fixed Deposits. Show all posts
Showing posts with label fixed Deposits. Show all posts
Sunday, 22 July 2018
Tuesday, 5 September 2017
State Bank of India
22:56
State Bank Of India Fixed Deposit Rates
State Bank Of India Fixed Deposit Rates
State Bank of India now offers 6.75% interest on one-year fixed deposits compared to 6.9% earlier.
The interest rate payable to SBI Staff and pensioners will be 1 per cent above the applicable rate, according to the website. The rate applicable to all senior citizens and SBI pensioners of age 60 years and above will be 0.50 per cent above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident Indian senior citizen pensioners will get both the benefits of Staff (1 per cent) and resident Indian senior citizens (0.50 per cent).
The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits. The interest rates on "SBI Tax Savings Scheme 2006 (SBITSS)" retail deposits and NRO deposits shall be aligned as per the proposed rates for domestic retail term deposits. NRO stands for Non-Resident Ordinary account. It refers to the savings or fixed deposit account of a non-resident Indian in a bank in India.
However, NRO deposits of SBI staff are not eligible for additional 1 per cent interest otherwise applicable to staff domestic retail deposits. These rates of interest shall also be made applicable to domestic term deposits from cooperative banks.
Source:NDTV
Saturday, 8 July 2017
State Bank of India
08:33
SBI has cut interest rate on 1-year FD to 6.75% from 6.9%
SBI has cut interest rate on 1-year FD to 6.75% from 6.9%
SBI has reduced interest rate on deposits between 456 days to less than 2 years to 6. 5 per cent, from 6.75 per cent.
SBI or State Bank of India has revised term deposit of fixed deposit rates from July 1, 2017. SBI, for example, has cut interest rate on 1-year FD to 6.75 per cent from 6.9 per cent. Similarly, on fixed deposits with maturity between 1-year and 455 days the rate has been cut to 6.5 per cent from 6.9 per cent earlier. Also, SBI has reduced interest rate on deposits between 456 days to less than 2 years to 6. 5 per cent, from 6.75 per cent. These rates are for retail deposits below Rs. 1 crore. SBI's move come amid a declining interest rate across the financial system. Senior citizens get about 50 basis points higher rates as compared to other depositors.
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Tenors
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Earlier rates
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Revised from 01.07.2017
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Earlier rates for senior citizens
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Revised for senior citizens from
01.07.2017
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7 days to 45 days
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5.5
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5.5
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6
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6
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46 days to 179 days
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6.5
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6.5
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7
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7
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180 days to 210 days
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6.5
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6.5
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7
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7
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211 days to less than 1 year
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6.5
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6.5
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7
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7
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1 year
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6.9
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6.75
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7.4
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7.25
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Above 1 year to 455 days
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6.9
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6.5
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7.4
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7
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456 days to less than 2 years
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6.75
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6.5
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7.25
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7
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2 years to less than 3 years
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6.25
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6.25
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6.75
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6.75
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3 years to less than 5 years
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6.25
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6.25
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6.75
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6.75
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5 years and up to 10 years
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6.25
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6.25
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6.75
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6.75
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Other things to know about SBI fixed deposits, according to its website.
The minimum required for an SBI term or fixed deposit is Rs. 1,000.
The tenure can be from 7 days to 10 years
SBI also provides loan facility against deposits
Payment of interest at Monthly/Quarterly/Calendar quarter basis as per your requirement.
For retail term deposits up to Rs. 5 lakh, the prepayment penalty will be 'NIL' provided the deposits have remained with the bank for at least 7 days.
For term deposits above Rs. 5 lakh but less than Rs. 1 crore, the prepayment penalty will 1 per cent for all tenors
Source:NDTV
Thursday, 20 April 2017
Reserve Bank of India
07:54
Pradhan Mantri Garib Kalyan Deposit Scheme Amendment in Clause 5
Pradhan Mantri Garib Kalyan Deposit Scheme Amendment in Clause 5
Central Government amends Pradhan Mantri Garib Kalyan Deposit Scheme through a Notification.
In exercise of the powers conferred by clause (c) of Section 199B of the Finance Act, 2016 (28 of 2016), the Central Government has amended through a Notification the conditions specified in clause 5 of the Pradhan Mantri Garib Kalyan Deposit Scheme.
Following is the amended Clause 5:
Now the effective date of opening of the Bonds Ledger Account shall be the date of receipt of deposits by the Reserve Bank of India (RBI) from the authorized banks; wherein the due tax, surcharge and penalty has been received till 31st March, 2017; Provided further that the date of deposit shall in no case be extended beyond 30th April, 2017.
Source:PIBNEWS
Thursday, 14 April 2016
investors
07:55
8% government of India Savings Bond make a comeback
8% government of India Savings Bond make a comeback
A fixed income product floated by the government that was ignored by investors for almost five years is back in demand. Fixed income investors are flocking to the government of India (GOI) Savings Bonds, 2003 since April 1, post the reduction in interest rates on small savings and post office time deposits were lowered. With interest rates expected to soften further, investors are locking their money in these bonds that offer 8% returns annually.
"GOI bonds pay a little more than post office time deposits and bank deposits. They are very safe since they are issued by the government of India, and hence there are increased enquiries and investments into these bonds, over the last couple of weeks," says Anil Chopra, Group CEO, Bajaj Capital.
Before the rate cut on small savings and post office time deposits were announced, a 5-year time deposit from the post office paid 8.5% every year. From April 1, the same deposit fetches 7.9%. Other comparable products such as fixed deposits from banks like SBI and HDFC Bank pay a maximum of 7.5%, while Bank of Baroda pays 7.3% and foreign banks like HSBC pay 7.25%.
Given that these government bonds pay 8%, which is higher than competing products, smart investors are locking themselves onto these bonds. The bonds have a tenure of six years and investors can choose to take interest either on a half yearly basis or on a cumulative basis at the end of the tenure.
In the last five years, this product was out of favour because post office time deposits and banks paid higher than 8% in a higher interest rate regime. Wealth managers said with rates expected to decline, investors want to lock in their money for six years.
Interest income from these bonds, however, are taxable. Investors are liable to pay tax depending on his tax slab. Tax deducted at source (TDS) will be applicable if interest from this instrument earned is more than Rs 5,000 in a financial year. Unlike tax free bonds, the Bonds are illiquid and shall not be tradable in the secondary market and will not be eligible as collateral for loans from banks, financial Institutions.
Source:BankingUpdates
Friday, 1 April 2016
small savings
22:46
Investor rush to lock into high rates crashes computers at Post Offices
Investor rush to lock into high rates crashes computers at Post Offices
MUMBAI / NEW DELHI: Computer systems of post offices across the country have been hit by unprecedented year-end rush to open new public provident fund and senior citizen scheme accounts and deposit money in existing accounts, prompting the government to order contingency measures such as acceptance of deposits offline.
On Monday, the computer system connecting the country's 20,500 post offices — which reopened after a four-day holiday — witnessed a major slowdown, prompting the new set of instructions that speeded up processing. There were fresh glitches on Tuesday that inconvenienced depositors but officials said the problem was resolved by late afternoon. A fresh set of instructions on accepting reinvestment would be issued on Wednesday.
While there is always a year-end rush to claim tax benefits on investments, this time the problem is more acute due to the four-day holiday and the government's decision to lower interest rates on small saving schemes by more than a percentage point in some cases. With those putting money in Monthly Income Scheme, Senior Citizen Schemes or National Savings Certificate assured of locking in their investment at a higher rate for the next few years, the queues are longer this year.
Adding to the post office woes was the fast rollout of core banking platform across the country, which had been facing problems as it had not yet stabilized. The post office has been migrating all savings accounts on to the core banking system. The number of computerized post offices has increased to 12,000 in December 2015 from 2,000 at the end of December 2014. And in the last two-and-a-half months, it has grown to 20,000 from 12,000.
"We have allowed all post offices to accept deposits offline. This will free up a lot of capacity for withdrawals and reinvestment, which need to be checked from the system. We are trying to ensure that we are able to deliver service to everyone," said L N Sharma, India Post's deputy director general in charge of financial services. He added that any investor who faces a problem should contact the Superintendent through the post office as systems have been put in place to escalate the problem at the department of posts.
Customers in various states, including Maharashtra, Delhi, Gujarat, Telangana, Himachal Pradesh and Madhya Pradesh, complained of computer downtime in post offices. "It looks like the post office is also having some problem with reconciliation of their numbers. Several people have received communication asking them to check whether interest is being correctly credited into their accounts," said a small savings agent.
Some customers have complained that their names were inputted incorrectly resulting in reviving certificates with spelling mistakes. There were concerns that this could lead to problems while withdrawing funds a decade later. In Maharashtra, the Postmaster General at Pune said that the Finacle core banking system, set up by Infosys, was experiencing problems due to which members of public were facing difficulties in conducting their transactions.
Source:Sapost
Monday, 22 February 2016
savings account
06:04
Implementation Of FATCA
Implementation Of FATCA
'No need of reporting fixed deposits in pre-existing accounts'
The Indian government clarified on Friday that the implementation of the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS) will not entail reporting of all fixed deposits and auto sweep facilities in pre-existing savings bank accounts.
"During stakeholders consultations, representatives of financial institutions informed that in such cases, no additional documentation is obtained for these fixed deposits accounts as they are intrinsically related to existing saving bank account and all KYC documents are available for the existing saving bank account," the Central Board of Direct Taxes said on their website.
As per the order, fixed deposits in savings accounts opened before June 30, 2014 and December 31, 2015 will not have to be reported for FATCA and CRS, respectively.
The guidelines also said that for the upcoming reporting in March 2015 and May 2016, all reporting has to be done in Indian currency. For the reporting in 2017, Form 61B and Schema will be suitably modified to include a field for capturing the type of currency.
India and the US signed an inter-governmental agreement to implement FATCA in July 2015, towards greater transparency between the two countries on tax matters.
The decision will enable the government to receive information from the US and from other jurisdictions with which India has entered into agreements for Automatic Exchange of Financial Account Information (AEOI) as per CRS about assets of Indians held abroad including through entities in which Indians are beneficial owners.
These steps are designed to help the government curb tax evasion and deal with the problems of black money.
The measures will also result in financial institutions in India being FATCA complaint and they will not be required to enter into separate agreements with the US to avoid 30 percent withholding on their US source of income.
Till now, the Automatic Exchange of Financial Account Information protocols as per common reporting standards have been signed by 52 countries.
The Indian government has taken a leading role in international fora towards building a consensus among major economies that the problem of offshore tax evasion and flow of illicit money can be addressed only by free flow of financial account information to be exchanged among countries on an automatic basis.
Source:Business Today
Wednesday, 20 January 2016
unclaimed deposits
07:56
How to claim unclaimed deposits from banks
How to claim unclaimed deposits from banks
It is possible to lose track of bank deposits if financial records are not maintained properly. Also, when a person dies, legal heirs sometimes discover unclaimed bank deposits. The Reserve Bank of India has mandated banks to publish a list of inactive or inoperative accounts for 10 years or more on the bank's website. It is possible for the depositor or legal heir to claim such amounts by following procedures.
Search of records
The claimant needs to visit the bank's website to check the inactive account details. Only the primary account holder's details can be searched from the list.
Search criteria
Claimant can search records based on:
1. Name and date of birth
2. Name and PAN
3. Name and passport number
4. Name and pincode
5. Name and telephone number
Claim by self
If the account holder himself wishes to make a claim, he needs to visit the nearest bank branch and submit the unclaimed deposits claim form which can be downloaded from the bank's website or obtained at the branch. The form needs to be duly filled and should be accompanied with a valid identity and address proof document of the claimant.
Claim by heir/nominee
In case of claim by a legal heir, he needs to visit the nearest branch and submit the unclaimed deposits claim form. The form needs to be accompanied with valid identity and address proof of the claimant. Copy of death dertificate of deceased account holder.
Process
After the bank verifies the genuineness of the claim, the status of the unclaimed account is changed to regular and transactions are allowed. In case of claim by legal heirs, the claim settlement procedure of the bank is followed.
Points to note
1. The claimant is required to carry original documents for verification.
2. Applicable interest for savings bank accounts is credited on regular basis irrespective of the status of the account i.e. operative or not.
3. Banks are required to make all efforts to trace inoperative account holders.
(The content is courtesy Centre for Investment Education and Learning (CIEL). Contributions have been made by Girija Gadre, Arti Bhargava and Labdhi Mehta)
Wednesday, 13 January 2016
PPF
05:23
To Increase Savings Rate in the Economy - Different Views and Suggestions
To Increase Savings Rate in the Economy - Different Views and Suggestions
NewDelhi:The Reserve Bank of India and financial sector bosses on Tuesday made a strong pitch for higher incentives for savings, including raising the tax benefit for investing money in fixed deposits and public provident fund (PPF) to Rs 2.5 lakh from Rs 1.5 lakh currently.
Sources said RBI deputy governor Urjit Patel kicked off the customary pre-budget consultation with finance minister Arun Jaitley with a suggestion to "significantly" increase savings, which was followed by demands to raise the cap by bankers as well as insurance companies.
"We need to increase the savings rate in the economy and take it back to 35% of GDP. For that, enhancing section 80C (of Income Tax Act) to Rs 2.5-3 lakh will be helpful," Yes Bank MD & CEO Rana Kapoor said.
Bankers said the ceiling should be enhanced, especially at a time when real interest rates (net of inflation) had turned positive after several years.
Taking a cue from RBI's Patel, Life Insurance Corporation chairman SK Roy suggested that the government could impose sub-limits within the section 80C exemptions, said a source present in the meeting.
Under the current rules, the government allows deduction of up to Rs 1.5 lakh for investment in various savings instruments such as fixed deposits with a tenure of five years or more, provident fund, PPF and life insurance schemes.
The suggestion came amid recommendations from some private sector bankers that the government should lower the quantum of tax-free bonds that are issued, if not completed do away with them. They argued that the bonds were being bought by high net-worth individuals such as film stars and were not benefiting the common man. The bonds issued by certain institutions compete with bank deposits.
Bankers also demanded tax should be deducted on interest of above Rs 50,000 as against the current Rs 10,000.
In addition, Kapoor said, there were suggestions on making the gold monetization scheme more attractive. A finance ministry statement said bankers also suggested that interest rate on small savings schemes such as PPF should be rationalized and linked to the yield on five-year government securities.
Banks as well as the RBI have been demanding the change to ensure that investors don't park funds in PPF and National Savings Scheme, which offer higher rates, and instead opt for fixed deposits with banks. Bankers say higher deposit rates don't allow them to lower lending rates, something that the government has been seeking.
Thursday, 26 November 2015
fixed Deposits
08:05
Bandhan Bank starts disbursing loans
Bandhan Bank starts disbursing loans
Bandhan Bank Chairman and Managing Director Chandra Shekhar Ghosh has started disbursing regular loans, although at a muted pace, on steady deposit mobilisation.
The bank is offering retail, small and medium enterprises, and agriculture loans. Housing loans have been capped at Rs 1,5 lakh commercial vehicle loans at Rs 1,0 lakh and loans to small and medium enterprises at Rs 2,5 lakh. All loans are linked to the base rate, which is set at 12 per cent, much higher than most banks. According to a Bandhan Bank spokesperson, it started its credit operations on a small scale about a month ago. The bank was launched on August 23.
Bandhan Bank has garnered deposits of Rs 3,700 crore, according to C S Ghosh, CEO and MD. The bank expects a fresh round of capital infusion of Rs 428 crore from International Finance Corporation and the Singapore government-backed GIC by March 2016. The two agencies have already invested Rs 1,020 crore in the bank and have committed an equity investment of Rs 1,600 crore.
The capital base of Bandhan Bank is Rs 2,570 crore, against the regulatory requirement of Rs 500 crore.
Fresh capital infusion will bolster this to Rs 3,052 crore, translating to a credit risk-weighted asset ratio of 44.54 per cent, one of the highest in the sector.
The bank is depending on aggressive deposit mobilisation to bring down cost of funds over the next year.
The plan is to be aggressive in taking deposits while going slow in lending. Thus, even as its lending rates are high, the bank is offering competitive deposit rates. Savings interest rates have been fixed at 4.25 per cent for deposits below Rs 1 lakh and five per cent for above Rs 1 lakh. For term deposits, the maximum interest rate, between three-five years maturity, has been fixed at 8.5 per cent, with an additional 0.5 per cent for senior citizens. Bandhan Bank started operations with a simultaneous launch of 501 branches, 50 ATMs, a microloan book of Rs 10,500 crore and savings accounts totalling 1.43 million. By the end of this financial year, the plan is to have 632 branches and 250 ATMs in 27 states
Source:BankingUpdates
Source:BankingUpdates
Monday, 28 September 2015
Tax free Bonds
08:15
Falling FD rates may help tax-free bonds
Falling FD rates may help tax-free bonds
Top PSU players are gearing up for Rs 40,000 cr issue
Falling bank fixed deposit rates will be a boon for the Rs 40,000 crore tax-free bond issue planned by government-owned enterprises in FY16. Public sector players scheduled to come out with tax-free bonds include the National Highways Authority of India (Rs 24,000 crore), Indian Railway Finance Corporation (Rs 6,000 crore), Housing and Urban Development Corporation (Rs 5,000 crore), Rural Electrification Corporation (Rs 1,000 crore), Indian Renewable Energy Development Agency (Rs 2,000 crore) and Power Finance Corporation (Rs 1,000 crore).
NTPC has just raised Rs 1,000 crore through the first issue of the tax-free bonds announced earlier this year in the Union budget. NTPC tax-free bonds offered a coupon rate of 7.36 per cent for a 10-year tenure, 7.53 per cent for a 15-year tenure and 7.62 per cent for a 20-year tenure to the retail individual investors.
Experts believe the forthcoming new tax-free bond issuances will be able to offer above 7 per cent coupon rate despite a 25 basis point repo rate cut by RBI. Tax-free bonds are tax-efficient compared with the bank fixed deposits, which attract income tax.
Bank fixed deposit rates have fallen sharply over the past year from over 9 per cent to around 8-7.5 per cent for one year. In such a situation those in the highest income tax bracket who pay 30 per cent as tax, will be able to earn much better by investing in forthcoming tax-free bonds compared to the bank fixed deposits.
Said Ajay Manglunia, head-fixed income, Edelweiss Capital, “With a 25 basis point cut in the repo rate, the forthcoming tax-free bonds may offer a coupon rate which would be 5 to 10 basis points lower, but they will be able to offer coupon rates above 7 per cent. Retail investors may not be interested in coupon rates below 7 per cent.’’
In such a situation, smart investors in fixed deposits would like to shift to the tax-free bonds being issued by the highly rated public sector undertaking as most of them enjoy AAA ratings.
This is evident from the huge response to the NTPC tax-free bond issue, which opened on September 23 and had to be pre-closed on September 24 far ahead of its original closing date of September 30. NTPC informed stock exchanges saying that in view of oversubscription, the company is pre-closing the public issue of tax-free bonds on September 24, 2015.
Source :http://www.mydigitalfc.com/banking/falling-fd-rates-may-help-tax-free-bonds-234
