Not getting good Returns? Here are 4 Fixed Deposits that Offer Yields Of 9% to 11%
Reserve Bank of India has been on cutting spree since
last one & half year. Last week, it cut repo rate by 0.25% making it 5th
straight cut. Banks have been following this rate cut and interest rates on
fixed deposits are also declining. This has put many people specially conservative
investors like Senior Citizen who rely on interest earnings to fund monthly
expenses.
We have researched on options available in market for
avenues that yield good returns. We have narrowed down to options mentioned
below. Note we have mentioned “yield” as yield is the final return a depositor
gets per year from his deposit. Higher the yield better for depositor.
What are
yields?
First let us explain why it is important to look at
yield. Most financial institution including banks tend to compound interest
rates every quarter. So, let us say you deposit Rs 1, 00,000 at 8% per annum
and the bank compounds the interest every quarter. Let us assume you deposited
the amount on Jan 1, 2019. So, for the first quarter ending March 31, 2019 your
interest roughly would be Rs 2,000. So for the next quarter ending June 30,
2019, your deposit would grow to Rs 1, 02,000.
This means higher the frequency if compounding,
higher your corpus would grow. Let us now take a look at 4 Fixed Deposits with
higher yields.
Mahindra
Finance
If you invest in the fixed deposits of Mahindra
Finance, your yield can go as high as 9.65
per cent on a 40 month deposit. On a 33-month deposit, the yield turns out
to be 9.40 per cent.
This is for the cumulative scheme only. So, if you
invest Rs 5,000, after 40 months you get Rs 6,608, which is 9.65% return.
In fact, the deposits are rated as AAA by the rating
agencies. This shows relative safety on these deposits.
Shriram Transport Finance Company
Shriram Transport Finance offers Fixed Deposit with
high yield. Whats more is that it offers monthly compounding which mean better
prospect for depositors. In fact, the 5 year deposits which offer an interest
rate of 8.88 per cent with monthly rests, give you a yield of an impressive 11.13 per cent. This is under the
cumulative scheme only.
For a 48-month deposit the interest rate offered is
8.65 per cent, while the yield is 10.29 per cent.
Jana Small
Finance Bank deposits
Jana Small Finance Bank was granted license a few
years ago, to operate as a small finance bank.
It offers FD with the interest of 8.25 per cent on a
3 year to 5 year deposit, taking the yield on the same to as much as 10.09 per cent on the 5 year tenure. A
double digit yield is not common these days.
Suryoday Small
Finance Bank FD
In this deposit, the deposit holders are offered an
interest rate of 8.75 per cent for the 2-3 year deposit. The annualized yield
here works to slightly above 9 per cent. Senior citizens are offered interest
rates, where yields can go as high as 9.58 per cent.
Note, We urge depositors to research on rating on
Fixed Deposits first and consult their financial advisors before committing
their money.
About Us
We are a neo advisory firm that
believes in Goal based investment. We offer advisory services in Mutual Funds
and retirement/ Life insurance domain. For any clarification / investment needs
call us on +91 9325295502.
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