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 :-
-
For different banks where you never opened account, is it a work to fill all forms , photographs , photocopies , KYC → wait period and then deposit?
-
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) ?
-
After FD, do you close the account with banks? (Like after a year you find some other bank offering good return )
-
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
Earlier yes, now no. Just call them and the Rm will come running home to do the form filling up. Yes every two years you need to do Re-KYC. That is it. Everything else is online. I do not even ask for ATM card or cheque book, as it takes up more space in my home (Joking) For few banks ATM is needed as this card number is needed to do the initial registration.
The first step is to open a SB account and thereafter the rest of the products can be opened and serviced through this SB account. One issue will be the minimum monthly balance that you need to maintain in these sB account. few banks waive it if you have FD, but it is a choice you need to take. Yes SB account is needed. If you have a business then it will be current accounts.
No I dont, I will keep it running, as the same bank may offer higher rates in future. Once you have an account, you need to do one transaction once in six months to keep it active. I will not close the account if that bank is no longer giving higher FD rate.
Absolutely NO. The service SBI offers is mind boggling, nowadays, everything is done online, so visiting the branch is a rare occasion. What I do is when I open an account, I will chose a branch which is closer to my home town, so that in case I need to visit, I can go visit them. Do not like the head office or regional office branch. They are too busy and crowded. FDs can be opened online without any hazzle.
If you have deposits they do assign an RM and you could contact him and get your work done. Example: IDFC accept duly signed scanned copy of instruction which is sent to their RM. They do a call verification and there after the transaction is executed. ReKYC docs are all sent by emails to the RM who will get things done. No need to go the branch.
Yes, because they are done by banks, different regulator.
I have not opened a FD where I did not have an account, so I don’t know. And AFAIK I think a SB account has to be opened for an FD to be made, and SB account will definitely take time, both as per RBI regulations and independent rules by respective banks, it is understandable, because once an account is opened, it opens a lot of other streams of financial products both to the bank and to us.
Yep, digital digital digital, I get it
1 Like
This is true in some cases, but from what i have experienced they have opened my account in a day and the very next day they help me in opening the FD. Also you actually need not have SB account to open FD account, I have some FDs in banks where I dont have SB account. They will issue me a cheque if I want to withdraw.
I treat FDs as reserve fund so its only a couple of times I have closed FD. It has never been a hassle to me yet. But be sure that the bank is in that list @neha1101 gave, that covered by insurance list.
5L per person per bank
1 Like
5 Lack applies to each customer for each bank, provided that bank is insured.
This is new to me. Could you please let me know, if it is ok with you, the names of the bank who will allow to open a FD without SB account.
SB account allows audit trail or fund trace as to from where the bank got the money (KYC angle) I am sure in such banks, you need to go to the branch and open these FD and for closure it is the same, which I am sure is time consuming.
If you have a SB account, funds credit and debit to open a FD will be clearly mentioned in the statement. If the bank is allowing you to open the fD without SB account the cheque will be presented through their pool account. Honestly, never knew PSU, Private, Small finance banks do this.
You cant until you have an SB account opened first and thereafter move the money. I am referring to PSU, Private and Small finance bank and not co-op banks. Opening of SB account will take some time, but once done, then FD opening is online and instant.
I truly wish, all banks offer FD and allow the users to book the same using our demat account, just like we buy and sell shares. Once booked the broker in my case Icici direct can give it to the concerned bank. This will avoid SB account, paperwork etc. I even spoke to a banker about this, but they were reluctant as the bank makes money from having float money in SB account. He also said that once an account is opened, they can cross sell other products. He was not too happy with my idea. sad…
Yeah we realised this to an extent after CUB said checkbook and atm card are mandatory with SB for opening TD then charged for sms, card charge, account opening and atm card yearly charge which was quite annoying!
This is new. I always thought RM’ s job was always sell us credit card and loans. I never knew they help in opening FD’s too. Every 3rd sentence of my axis bank RM is “sir you have free credit card / qualified for some loan”, never spoke about FD’s.
One can avail insurance over 5 Lakh in the same bank. Trick is if you make FD’s then make it joint or change the order of names. Eg. If a person A has account he can open
- FD in his own name - A
- FD in his own and wife’s name - AW (A being first holder and wife second)
- FD in his wife’s and own name - WA
- FD in his son’s name - S
- FD in his own name and son’s - AS
- FD in his son’s name and his own - SA
and so on… in the above cases each FD is treated as a separate entity and each insured up to 5Lakhs.
1 Like