The following post is a sponsored post. Most of the investors in India are risk-averse and prefer choosing safe investment avenues. Even with a large number of structured products being offered to Indian investors, the popularity of fixed deposits (FDs) is high. FDs are offered by the banks and provide slightly better returns than the […]
The following post is a sponsored post. As indicated by the name, fixed or term deposits have a pre-determined tenure and interest rate for the principal amount invested in these accounts. The primary objective of fixed deposits is to help investors mobilize investible surplus and earn a higher interest rate. In addition, these kinds of […]
The following post is a sponsored post. A fixed deposit (FD) is an investment avenue through which investors deposit a certain sum for a specified period of time. The financial institution or the bank agrees to pay interest on the invested amount at the end of the specified period. This instrument has been a favorite […]
These days, a sum of Rs 1 lac looks like this — Fixed Deposit for Rs 1 lac @ 9% per annum with monthly interest payout = Rs 9,000 per annum in interest earned before tax = Rs 750 per month in interest earned before tax = Rs 672.75 per month in interest @ 10.3% […]
About a week back, I received a PR email from IDBI Bank announcing the launch of their Floating Rate Term Deposit scheme. Thought I’d look it up and give you a quick review (a side effect being the evaluation of this scheme for it’s suitability in my ere portfolio). To begin with, if things such […]
So, finally, ICICI Bank enables downloading of fixed deposit certificates opened online through net banking, but my delight immediately turns to dejection because I download and open the PDF only to see this — Artificial Intelligence! Seriously!
In my most recent early retirement update, I’d published the below chart — This chart illustrates potential monthly income earned and actual expenses incurred as a function of time over the past four-quarters. I’d explained these terms further by saying — When I say potential income, I am referring to any passive income plus the […]
Here’s an unusual financial planning conversation I heard from a colleague at lunch today — Seems my colleague wanted to get a borewell dug at their residence. But when the contractor visited her premises for a site evaluation it was discovered that the compound wall of the house had to be torn down in order […]
Following-up on my previous post where I illustrated through a real-world example the way to calculate the maturity value and effective yield on a five-year tax saving fixed deposit (FD), I hacked-up a simple Android-application that helps you do the same in an instant wherever you are. Click here to download the 5-Year Tax Saving […]
In the past one year, my Fixed Maturity Plans (FMPs) have fared only slightly better than my Bank Fixed Deposits (FDs) of comparable tenure. A 1-year FMP from IDFC achieved an APR of 10.05% (equal to an APY of 10.44% with quarterly compounding). A 1-year FMP from SBI achieved an APR of 9.89% (equal to […]
[sniplet facebook reposts] Quite a number of readers had written in asking me to explain the difference between APR and APY. APR = Annual Percentage Rate. Think of this as simple interest. APY = Annual Percentage Yield. Think of this as compound interest. APR and APY explain why your Fixed Deposit certificate quotes an interest […]
A reader had written in some time back asking me if investing in fixed deposits issued by companies/corporates was a good investment idea. Here’s my take: You should think about investing in company fixed deposits only when you have some surplus cash that you’re prepared to lose should the worst were to happen. Be prepared […]
Reading through my backlog of emails, here’s what I found: Why would I ever want to break my ultra-safe Fixed Deposit(s) that currently earn a handsome 9% — 10% per annum and instead invest my money in something that’s much much riskier (AA-!) and only assures me up to 12.50% per annum? The risk premium […]
A colleague asked, I want to set aside an emergency fund purely to handle any loss of employment situation that I might face. What would you recommend? Here’s what I recommend: First, estimate your monthly expenses (including EMIs, monthly savings for annual expenses, and routine household expenses). Let’s say this amount is M. Structure a […]
A friend asked, I’m in the midst of changing jobs and have opted to withdraw the savings in my Employee Provident Fund. It’s a decent sum — around Rs 300,000 — and I wish to keep this money safe. Is there a way I can achieve this and yet earn a steady income? My immediate […]
A reader asks, I’m being offered an upfront joining bonus by my new employer. How should I go about investing this money? There is one condition though. I will be required to give back this money if I leave the job within 6 months. Given the payback condition, I’d recommend that the joining bonus be […]