Hi @Gnome
You are right. It is an approximate return that you will be getting based on LTP (it is given for comparison purpose). The actual yield of the security depends on the weighted average price discovered in the auction.
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Thank you very much,
I have two more question.
If I buy it, what is the minimum amount I have to invest?
And can I sell it if I need money to invest in stocks. (for Transferring money from debt to equity)
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I think it is 10,000, don’t remember it exactly. And I don’t think no, you cannot sell them when you want, and the amount will be credited only after the maturity date.
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Any idea how long is the maturity period ?
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Days, multiples of 91 days I think, less than 365.
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Nice reads on this topic. Easily explained
The comparison is between apples and oranges. Folks who are saying their banks offer better rates are completely disregarding a major USP of the TBills, its 100% safe. Unless we are in a SriLanka like situation, the government will always pay to its creditors the amount it owes them.
The same cant be said for any small finance banks and even a few large banks are susceptible to the risks.
Also, the rates TBills are offering are for <1 year period, in my understanding, any bank offering ~7% is also locking in your money for >1, in some cases 2 years.
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Deposits upto 5 lacks PER CUSTOMER is fully insured by DICGC, hence the risk aspect is fully removed from the equation.
Equitas is offering 5.5 to 7% on a tiered basis on SB account, same with RBL bank which is slightly lower. With regard to FD, Ujjivan is giving 8% for 80 weeks.
Both the above banks are covered by the Insurance as per DICGC website.
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Each depositor is insured by the Deposit Insurance and Credit Guarantee Corporation(DICGC) upto the maximum of Rs. 5 Lakh, for both principal and interest amount held by him in the same right and
same capacity.
Copied and pasted.
So if the FDs are more than 5 lacs, for the remaining amount, we have to wait till the problem gets sorted out. Not the case with Gsecs. Hence the concept of ‘too big to fail’ banks, where we can make FDs, SBI, HDFC and ICICI.
These are relatively risky choices, compared to established bigger banks.
What is the point? I thought I mentioned the same thing which you have mentioned.
That is why you spread your deposits across banks and across family members.
30% capital gains tax… so T-Bills are not great option
For short term money. 1 year bonds on wint wealth with yield of 11.5 XIRR is better. Post tax you will get 8% returns
Risk is not full removed if the amount is more than 5 lacs was my point.
Debt is for capital preservation and cash flows, not for appreciation. A sure or guaranteed cash flow in the absence of pension in old age is wonderful.
Only when we have reached the level of capital appreciation, we think of protection.
When you own a Ferrari, you don’t want it get scratched 
You have significant experience doing FD. Gotta appreciate for sharing the DICGC stuff.
My family did FD did for past 15 years, I had lot of questions back then and still do. The questions I often have :-
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For different banks where you never opened account, is it a work to fill all forms , photographs , photocopies , KYC → wait period and then deposit?
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Is it mandatory to open savings account always?(I remember a time where my mother wanted to open RD only in CUB bank in 2015 but banks forced her to open savings account expected to maintain some 1.5k AMB and some charges) ?
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After FD, do you close the account with banks? (Like after a year you find some other bank offering good return )
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It it just us or like most psu banks are real pain in the neck to open a FD account with paperwork nightmare, pointless letters and need to use dog language ? ( You don’t have to answer this if you don’t want to. Just reminded of me of past years going to bank with my mom and having certain experiences especially SBI wondering if you had same)
Many people i have seen these days write off thought of opening FDs. Actually FDs have good use if done thoughtfully.
There are so many banks distribute your wealth 5L each.
PSU means job security, so it is possible that they may behave impolitely.
Banks are like custodians, so it is not surprising about the load of paperwork, for both taking deposits and loans, the more stringent measures, the more transparency. Not that scams are stopped, but that is a different topic.
I think banks by themselves cannot frame each and every rule, there are certain regulations directed by RBI, so SB account opening etc are a pre requisite perhaps.
This being said, we have our rights, but that does not mean that, our rights get executed right then and there. So we get to close our account after a few visits, and not once.
Ohh I understand that. But say you are scrolling through bank baazar for FD 's. It’s not always we are having accounts isn’t it?
Does this mean we do below both?
Yes there are but I don’t know if the 5 lacs rule apply to each bank or all banks combined 
I noticed that stocks, MF , t-bills are simplified to a lot of extent. But FD’s require some time?
I mean how fast can you put deposit in a bank you never have account?
Not really relevant but just wanted to know if this is the way for FD’s . I am just so used to digitalization nd all, I was just wondering if there is existed another simple way to FD’s for different banks