NEW DELHI: If you wish to make investments your cash in AAA-rated fastened deposits (FDs), you possibly can think about HDFC Ltd. The mortgage lender has raised rates of interest on FDs maturing between 33 and 99 months by as much as 25 foundation factors (bps). One bps equals 0.01%. The charges are efficient 30 March.
The 33-month fastened deposit will now fetch a 6.2% annualised return. The 66-month fastened deposit and 99-month fastened deposit will supply 6.5% and 6.65% annualised return respectively. Besides, senior residents will get a 25 bps further fee over and above the prevailing rates of interest.
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Anil Chopra, group director -Financial Wellbeing, Bajaj Capital stated, “The interest rate offered on the deposits is well-above the competitive investment options.”
There are numerous tenure choices from 12 months to 120 months to select from based mostly on one’s requirement. Further, relying on the necessity there are numerous fee choices to select from like month-to-month, quarterly, half-yearly or yearly.
“Company deposits that come with the highest ratings and from reputable and established groups may be considered by investors keeping their own risk profile in context. It is better to divide the investment amount across 2-3 such highly rated deposits and then invest for the medium-term horizon. Your total exposure to company deposits should be within a reasonable level of your total investible corpus,” stated Chopra
HDFC has AAA score from each CRISIL and ICRA for 25 consecutive years.
“These FD investments are meant for conservative investors who do not want to take a risk and are ok with it being taxed,” stated Mrin Agarwal, Director, FinSafe.in
According to monetary planners, a standard method that an investor should observe whereas investing in any debt merchandise is to search for security, liquidity after which returns.
Nishith Baldevdas, founder, Shree Financial, a SEBI Registered Investment Advisor, stated traders who’ve stuffed their security and liquidity buckets and needs to take some debt publicity only for returns can put money into such kind of FDs. “It is also pertinent to note that investors shouldn’t compare these FDs with bank FDs. These top-rated FDs don’t provide much liquidity when it comes to premature closure,” he added.
The authorities, in the meantime, has withdrawn the order, issued on Wednesday, which had lower rates of interest on small saving schemes akin to Public Provident Fund (PPF) and National Saving Certificate (NSC). Interest charges on these are actually identical as that of March.
(Do you’ve got a private finance question? Send in your queries at [email protected] and get them answered by trade specialists)
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