Page 5 - Fixed Deposit

Reader's corner: Mutual Funds

Ordinarily people derive a lot of comfort from investing into PPF, and rightly so

Add fixed deposits to your portfolio as rates on offer are quite reasonable

Many financial planners advise using this instrument for investment as well as meeting short-term goals

Why bank fixed deposits make better sense than buying T-bills, G-secs

Retail investors have stayed away from G-secs due to lack of secondary market

Loan against fixed deposit is cheaper, more flexible than a personal loan

The effective rate of interest comes to 1-2%

Bank FDs to become unattractive?

Experts say FDs will become unattractive going ahead, and returns could turn negative, if you take into account inflation

Banking: Rajiv Anand

I am a senior citizen and always get the higher interest rate for fixed deposits. Now, I want to invest in a fixed deposit jointly with my minor granddaughter. Will I still get the higher rate of interest for this FD?The interest on fixed deposits (FDs) is offered on the basis of the primary account holder, i.e., FD can earn higher interest rate in case the primary/first holder is a senior citizen. In an FD opened in the name of a minor, the account gets opened in 'self or minor operated by guardian' mode and therefore cannot have a joint account holder. Hence, the differential rate of interest offered to senior citizens will not be applicable on this FD.I am due to retire in five years and my son has just started working. If we take a joint home loan, will we get a longer tenure? After my retirement, can he continue paying the Equated Monthly Instalments out of his salary and claim the tax benefits?Some lenders do offer a longer tenure in this scenario, with a flexible repayment plan