Invest Rss

Florida Cabinet Greenlights Land Deal for New Tampa Bay Rays Stadium in Tampa — Here’s What Happens Next

Insurance FAQs — Thu, 26 Feb 2026 20:01:00 +0000

Last month, the Rays’ ownership signed a memorandum of understanding to build a new stadium and a vibrant mixed-use entertainment district on the college campus—while also committing to renovate several of the school’s existing buildings—laying the groundwork for a sweeping transformation that could redefine the area.

A small but highly strategic slice of the property—situated next to the New York Yankees’ spring training complex and just across the highway from Raymond James Stadium—is owned by the state of Florida, placing a pivotal piece of prime real estate at the center of the proposed development.

“This is undoubtedly a big moment for Tampa Bay, and the Rays are fully in this moment to bring this vision to life, and serve our region for generations to come,” Rays Chief Executive Officer Ken Babby said in a statement.

Earlier this month, Gov. Ron DeSantis stood alongside Rob Manfred, commissioner of Major League Baseball, at a high-profile news conference in Tampa to throw their weight behind the Rays’ stadium push. Team officials say they aim to have the new ballpark completed within three years—an ambitious timeline that signals urgency and a clear intent to move fast.

The Rays have pledged to cover at least 50% of the cost of a new ballpark, leaving the remaining funding to be worked out between the city of Tampa and Hillsborough County. But Gov. Ron DeSantis made one point crystal clear this month: the state of Florida will not provide any direct funding for the stadium—drawing a firm line even as negotiations intensify.

Since taking the field in 1998, the Rays have called Tropicana Field home—except in 2025, when hurricane damage forced the team to shift its home schedule to George M. Steinbrenner Field. The club’s lease at the Trop runs through at least the 2028 season, and the team is set to return there this year—keeping one foot in its longtime home while its future hangs in the balance.

A proposed $1.3 billion redevelopment plan for a new ballpark next to Tropicana Field collapsed last year, casting fresh uncertainty over the franchise’s future. The stakes grew even higher after the team was purchased last September by an ownership group led by Patrick Zalupski—a move that signaled change, but left big questions still hanging in the air.

Photo: Rendering provided by the Rays of a revamped HC Dale Mabry campus. (Courtesy of Tampa Bay Rays)

Munich Re to Return €5.3 Billion to Investors in Major Capital Payout Plan

Insurance FAQs — Thu, 26 Feb 2026 19:48:00 +0000

The company plans to buy back up to €2.25 billion worth of its own shares, it said in a statement Wednesday — a clear signal that it sees strong value in its stock. At the same time, it intends to propose a €24.00 per-share dividend for 2025, up from €20 a year earlier, delivering an even richer payout to investors and underscoring its confidence in the road ahead.

In December, Munich Re laid out ambitious new mid-term targets that raise the bar for shareholder returns. Under the strategy, which runs through the end of 2030, the company plans to distribute more than 80% of its profits through dividends and share buybacks — a notable jump from the roughly 75% average payout between 2020 and 2024. The message is clear: investors are set to claim an even larger share of the company’s earnings in the years ahead.

Munich Re said the new share buyback program is set to kick off on April 29, marking the next step in its aggressive capital return strategy and reinforcing its message of strength and confidence to investors.

“Distributing a high proportion of profits is common in the insurance sector, but Munich Re leads the peer group,” DZ Bank said in a research note last week.

Photo: The Munich Re logo displayed during a press conference in Munich. Credit: Guenter Schiffmann/Bloomberg.

Sompo Holdings Finalizes Aspen Acquisition, Taking the Insurer Private in Landmark Deal

Insurance FAQs — Wed, 25 Feb 2026 22:41:00 +0000

Under the terms of the deal, first unveiled in August 2025, 100% of Aspen’s outstanding Class A ordinary shares have been acquired, and the company will no longer trade on the New York Stock Exchange. Aspen now operates as a wholly owned subsidiary of Endurance Specialty Insurance Ltd., a unit of Sompo International Holdings Ltd.. Both companies ultimately sit under the umbrella of Sompo Group—a move that tightens Sompo’s grip on the global specialty insurance market and sets the stage for its next strategic push.

(In 2017, Sompo Group snapped up Endurance Specialty Holdings Ltd. for $6.3 billion, transforming it into a global platform designed to accelerate growth across the U.S. and Europe—a bold bet that continues to shape the company’s international expansion strategy today.)

Aspen will now operate under the umbrella of Sompo Group and transition to the Sompo brand, marking a new chapter for the specialty insurer. Mark Cloutier, Aspen’s former executive chairman and group chief executive officer, will remain closely involved, stepping into an advisory role to help guide the integration and shape the company’s next phase of growth.

“Today marks an important milestone in our strategy to continue Sompo’s plans for profitable growth, to deploy capital strategically and to ensure a globally diversified property & casualty (P&C) platform. I am pleased to welcome the Aspen team to Sompo,” according to Mikio Okumura, CEO of Sompo Group, in a statement.

“This transaction continues our commitment to invest in and grow our global P&C footprint through market cycles,” commented James Shea, CEO of Sompo P&C.

“The addition of Aspen’s reinsurance and insurance portfolios along with a more substantial presence in the UK enable us to accelerate our commitments to our customers, people and shareholders,” Shea continued. “We look forward to welcoming our new colleagues and continuing to build our global portfolio through investments in people and technology. Aspen’s culture of underwriting and customer focus will ensure a smooth transition as we engage as one organization with our customers and partners.”

Stanford, who has served as CEO of Aspen UK since March 2024, will now take the helm of all U.K. property and casualty operations for Sompo Group. She will report to Alessa Quane, CEO of International Markets, and remain based in London—positioning her at the center of Sompo’s expanding footprint in one of its most critical markets.

Stanford succeeds Bob Thaker, who will step down from Sompo Group later this year to pursue new opportunities. In the coming months, Thaker will work closely with her to ensure a seamless handover—maintaining stability even as the company turns the page to its next chapter.

As for the advisers behind the deal, Sompo Group tapped Morgan Stanley & Co. LLC as its exclusive financial adviser, with Skadden, Arps, Slate, Meagher & Flom LLP serving as legal counsel. Oxbow Partners supported the integration process, while Kekst CNC acted as strategic communications adviser—assembling a heavyweight team to steer one of the industry’s most closely watched transactions.

On Aspen’s side, Goldman Sachs & Co. LLC led the financial advisory team, joined by Insurance Advisory Partners LLC as co-adviser. Sidley Austin LLP served as legal counsel—bringing together a seasoned lineup to navigate one of the sector’s most high-profile deals.

U.S. Stocks Slide Again as Tech Worries and Looming Government Shutdown Shake Markets

Insurance FAQs — Fri, 07 Nov 2025 22:51:00 +0000

By 9:35 a.m. ET (2:35 p.m. GMT), the Dow Jones Industrial Average had tumbled 225 points, or 0.5%, the S&P 500 slipped 40 points, or 0.6%, and the Nasdaq Composite dropped 200 points, or 0.9%.

All three major U.S. indices are headed for weekly losses, dragged down by mounting worries over the tech sector’s sky-high valuations. Ahead of Friday’s open, the S&P 500 had fallen 1.8% for the week, while the 30-stock Dow Jones Industrial Average and the Nasdaq were down nearly 1.4% and 2.8%, respectively.

Fed Faces Uncertainty as Government Shutdown Rattles Markets

Fueling worries over tech sector valuations, this week’s market weakness comes as the U.S. government shutdown stretches into its second month, delaying the release of crucial economic data, including inflation and jobs reports. The blackout has left both investors and the Federal Reserve navigating partly in the dark, complicating the central bank’s judgment on whether further rate cuts are warranted.

Private-sector data offered some insight on Thursday. Challenger, Gray & Christmas reported that U.S. companies announced a staggering 183.1% jump in layoffs in October compared with the previous month — the sharpest monthly surge in decades.

Data from the Bank of America Institute showed that while the labor market hasn’t slowed dramatically since September, it has clearly cooled compared with the spring.

Meanwhile, a separate report from payroll processor ADP, released earlier this week, showed that U.S. private firms added 42,000 jobs last month, rebounding from a revised loss of 29,000 in September and another decline in August.

"[E]conomic data availability remains limited but we view the data in hand as keeping a December rate cut from the Fed more likely than not," wrote Morgan Stanley analysts Michael Gapen and Sam Coffin in a note.

At its October policy meeting, the Fed slashed interest rates by 25 basis points in an effort to curb further weakening in the job market. Still, Chair Jerome Powell warned that another rate cut this year is far from certain.

On Wednesday, the U.S. Supreme Court questioned the legality of President Trump’s tariffs, putting the future of his trade policies in serious doubt.

Wall Street Cheers a Strong Earnings Season

Markets have found a boost from a surprisingly strong earnings season. With the third-quarter reporting period in its final stretch, roughly 83% of the 424 S&P 500 companies that have reported so far have exceeded Wall Street’s expectations.

Airbnb (NASDAQ: ABNB) surged after the company raised its quarterly revenue forecast, powered by strong third-quarter results and booming bookings across Latin America and the Asia-Pacific region.

Affirm Holdings (NASDAQ: AFRM) soared after smashing first-quarter fiscal 2026 expectations and boosting its full-year guidance, sending shares sharply higher.

Take-Two Interactive Software (NASDAQ: TTWO) Take-Two Interactive (NASDAQ: TTWO) tumbled after Rockstar Games confirmed a second delay for Grand Theft Auto VI, now slated for November 2026 instead of May, disappointing fans and investors alike.

DraftKings (NASDAQ: DKNG) tumbled after lowering its full-year sales outlook and posting mixed third-quarter results, amid rising concerns that prediction market services are eating into its core sports betting revenue.

Peloton Interactive (NASDAQ: PTON) jumped after exceeding quarterly revenue expectations, fueled by early momentum from its revamped products and strategic price hikes on hardware and subscriptions.

In a historic move, Tesla (NASDAQ: TSLA) shareholders greenlit a compensation plan for CEO Elon Musk that could see him earn up to $1 trillion in stock over the next ten years.

During Tesla’s annual meeting in Austin, Texas, over 75% of shareholders backed the plan, which hinges on audacious targets such as hitting an $8.5 trillion market cap and launching robotaxis and humanoid robots.

Crude Prices Poised for Weekly Decline

Oil edged higher Friday, yet looked headed for a second consecutive weekly loss as fears of excess supply and weakening U.S. demand weighed on the market.

Brent futures jumped 0.9% to $63.92 a barrel, with U.S. West Texas Intermediate (WTI) crude also up 0.9%, reaching $60.00 a barrel.

Crude contracts look set to fall about 2% this week, extending a two-week losing streak, following OPEC+’s decision to slightly boost production in December.

OPEC+ also paused further production hikes for the first quarter of next year, wary of flooding the market with excess supply.

Compounding the concerns, U.S. crude stocks climbed beyond expectations, raising alarm over slowing demand amid the nation’s longest-ever government shutdown.

Tesla Stock: A Steal or Still Overpriced?

Discover the answer fast with our Fair Value calculator — powered by 17 trusted industry valuation models for pinpoint accuracy.

Meta, Nvidia, CoreWeave Face Make-or-Break Moment in AI Race

Insurance FAQs — Mon, 16 Jun 2025 22:25:00 +0000

In 2025, the landscape of leading artificial intelligence stocks is evolving, with investor attention shifting toward emerging players like CoreWeave (CRWV). While semiconductor giants once dominated the AI space, software firms are increasingly gaining traction—evidenced by Snowflake (SNOW), which has surged 34% year to date.

Undoubtedly, leading AI stocks like Microsoft (MSFT) and Nvidia (NVDA) carry immense expectations. For numerous companies—including Alphabet (GOOGL), Amazon (AMZN), and Meta Platforms (META)—the emergence of generative AI presents a complex mix of significant risks and promising opportunities.

With the surge of generative AI—capable of creating text, images, and video—it’s wise to approach the hype with caution, particularly in light of recent events involving Super Micro Computer (SMCI).

Numerous companies are now eagerly promoting AI-driven product roadmaps. As a rule, prioritize AI stocks that leverage artificial intelligence to enhance their offerings or secure a competitive advantage.

Oracle Pops On AI-Driven Cloud Outlook

Oracle (ORCL) stood out among AI stocks after its strong fiscal fourth-quarter results and optimistic guidance, with its shares climbing 29% in 2025.

As a key indicator for AI stocks, chipmaker Nvidia reported its first-quarter earnings on May 28. Despite setbacks from U.S. trade restrictions impacting its China business, the AI accelerator leader exceeded Wall Street’s sales and earnings expectations for the quarter ending April 27.

Moreover, Nvidia’s stock has rebounded 5% in 2025 following a nearly 20% decline. The company is targeting expansion beyond major tech firms by pursuing "sovereign AI" initiatives—strategic partnerships with governments.

Nvidia’s stock climbed following news that the company will provide AI accelerators to Humain, Saudi Arabia’s new AI-focused subsidiary of the Public Investment Fund, which is developing a 500-megawatt AI data center. Additionally, Nvidia is setting its sights on expanding into European markets.

Margin pressure has been a significant challenge for Nvidia as it scales up production of its next-generation Blackwell AI chips in 2025. At GTC, Nvidia unveiled updates to its AI accelerator roadmap. However, considerable uncertainty remains over whether customers will truly require the 'Rubin Ultra' GPUs in 2027 and the 'Feynman' GPUs in 2028.

Meta's Big Bet On Scale AI

Meanwhile, Meta stock has gained 16% in 2025.

Meta is actively reshaping its AI strategy, planning to invest $14.9 billion to acquire a 49% stake in Scale AI. The startup specializes in data labeling services essential for training large language models. As part of the deal, Scale AI’s CEO, Alexandr Wang, will join Meta’s newly established AI research lab focused on advancing "superintelligence."

During Meta’s Q1 earnings call, CEO Mark Zuckerberg outlined five key pillars driving AI growth: enhanced advertising, immersive social media experiences, business messaging, the Meta AI app, and AI-powered devices such as spatial computing.

In April, the social media giant launched the Meta AI app, powered by its Llama 4 training model, featuring chatbot and web search capabilities. Prior to this, Llama technology had already been integrated into Meta’s popular apps like Instagram and WhatsApp.

In April, Meta unveiled its open-source Llama 4 AI model family. However, the company has postponed the release of its most powerful variant, Llama 4 Behemoth.

CoreWeave, Palantir Stand Out

CoreWeave, an AI cloud services provider backed by Nvidia, went public with an IPO in March and reported its first earnings as a public company on May 14. The company projected capital expenditures above expectations as it scales up capacity to serve a growing customer base. With Nvidia holding a 7% stake, the chipmaker plays a crucial role in CoreWeave’s growth and future prospects.

Both Nvidia and CoreWeave remain on the IBD Leaderboard.

Bank of America on June 16 downgraded CoreWeave stock to neutral.

"A significant debt funding ramp is still needed to support capital spending build out," said BofA analyst Brad Sills in a report.

Additionally, data analytics firm Palantir reported its first-quarter earnings on May 5. The company’s stock has surged 81% in 2025, following an impressive 340% rally last year.

Although software companies have been cautious in monetizing AI products so far, many analysts remain optimistic about their long-term growth potential.

Software Makers Ramp AI Agents

Palantir, along with Snowflake and the privately held Databricks, is dedicated to enabling companies to leverage their proprietary data for developing custom AI models. Let’s take a closer look at Databricks’ strategy.

Snowflake and Databricks are actively pursuing acquisitions to strengthen their competitive positions. However, Databricks has yet to reveal any plans for an initial public offering.

In an interview with IBD, ServiceNow (NOW) CEO Bill McDermott discussed the company’s ambitions to become a leader in AI. Recently, the enterprise software provider set ambitious AI revenue targets for fiscal 2026.

Meanwhile, software giant Salesforce (CRM) has agreed to acquire Informatica (INFA) for $8 billion to strengthen its AI strategy. Despite this move, Salesforce’s stock has fallen 22% year to date.

Apple Stock Lags, Google I/O

Apple’s stock has underperformed in 2025, dropping 21%. Additionally, the company held its flagship Worldwide Developers Conference on June 9, which revealed no major surprises regarding its AI initiatives.

As the iPhone 17 models prepare for their September 2025 launch, significant enhancements to Apple’s intelligence features seem unlikely. Notably, the voice assistant Siri has yet to receive upgrades powered by advanced AI technology.

Amid concerns about intensifying AI competition, Google’s stock has declined 7% in 2025. However, its Q1 earnings offered some positive momentum on the AI front. Recently, Google launched the Gemini 2.5 AI model, which has received favorable reviews.

The latest Gemini 2.5 model family formed the backbone of most Google I/O product announcements. According to Google, the Gemini app now boasts 400 million monthly active users.

AI Stocks: Cloud Computing

Meanwhile, robust revenue growth among cloud computing giants has been a key theme, driven by soaring capital investments in AI infrastructure. On April 24, Google’s cloud division reported a 28% increase in revenue, meeting market expectations.

Microsoft exceeded Wall Street’s fiscal third-quarter expectations, driven by robust sales in cloud computing and AI services. Azure’s cloud revenue growth accelerated to 35% in constant currency, up from 31% the previous quarter. As a result, Microsoft’s stock has gained 12% in 2025.

Microsoft is the largest investor in generative AI leader OpenAI, having committed approximately $14 billion to the startup. Its cloud business gains significant advantages by supporting OpenAI’s ChatGPT services.

Meanwhile, Amazon’s cloud revenue growth slowed to 17%, down from 19% in the previous quarter. Consequently, Amazon’s stock has declined 3% in 2025.

Within the data center infrastructure sector, Arista Networks (ANET) reported earnings on May 6. The company’s stock has declined 16% year-to-date. Below is an interview with Arista CEO Jayshree Ullal discussing the firm’s AI strategy.

AI Stocks: Semiconductor Plays

Meanwhile, AI chip export restrictions continue to pose uncertainty for semiconductor companies as the Trump administration reviews its policy options regarding China.

In mid-June, Advanced Micro Devices (AMD) held its Advancing AI event, unveiling updates to its AI strategy. Notable customers include OpenAI, Oracle, Meta, and xAI, with recent speculation hinting at potential collaboration with Amazon Web Services.

Broadcom (AVGO) is currently providing custom AI chips for major players like Google, Meta, and ByteDance, TikTok’s parent company. Analysts note it has four additional potential customers, including Apple, OpenAI, and xAI. Broadcom’s fiscal Q2 earnings exceeded expectations, with its AI segment standing out as a key driver.

Other notable AI chipmakers to keep an eye on include Qualcomm (QCOM), ARM Holdings (ARM), and Marvell Technologies (MRVL).

DeepSeek Roils AI Stocks

Meanwhile, OpenAI secured a valuation of $300 billion through a $40 billion fundraising round led by SoftBank. The company specializes in developing large, multimodal foundation models.

Investors should closely monitor the intense competition among AI models, which are vying in areas such as reasoning, multimodal capabilities, and computational efficiency. Large language models serve as the foundational building blocks for developing advanced AI applications.

Anthropic’s most recent funding round has propelled its valuation to $61.5 billion.

China-based DeepSeek is preparing to launch the next iteration of its open-source models.

IBD offers insight into the critical questions surrounding DeepSeek, including the AI rivalry between the U.S. and China. Meanwhile, Alibaba Holdings (BABA) is advancing its Qwen AI models, while Baidu (BIDU) continues to develop its Ernie AI models.

The commoditization of AI models is expected to accelerate application development. Although "training" AI models has driven the majority of capital expenditures so far, the market is likely to shift its focus toward "inferencing"—the deployment and operation of AI applications—over the long term.

AI Stocks To Watch By Industry Group

Company	Symbol	Comp Rating	Industry name	AI angle
Nvidia	(NVDA)	96	Elec-Semiconductor Fabless	Cloud computing giants buying more chips to train AI models or run AI workloads. Big lead over rival Advanced Micro Devices (AMD).
CrowdStrike	(CRWD)	98	Computer Software-Security	AI chatbots expected to automate more functions in security-operations centers and reduce the time to detect computer hacking.
Arista Networks	(ANET)	91	Computer-Networking	Sells computer network switches that speed up communications among racks of computer servers packed into "hyperscale" data centers. With AI growth, internet data centers will need more network bandwidth.
Microsoft	(MSFT)	94	Computer Software-Desktop	Biggest investor in generative AI startup Open AI, whose ChatGPT users require Azure cloud services. Microsoft's business AI assistant, Office 365 Copilot, is another potential revenue source.
Salesforce	(CRM)	68	Computer Software-Enterprise	Pivoted to autonomous, goal-driven AI agents from conversational co-pilots. Expected to use a mix of subscription and consumption-based pricing.
Amazon.com	(AMZN)	93	Retail-Internet	Alexa smart assistant upgraded. Cloud computing unit working with OpenAI rivals Anthropic, Hugging Face and Falcon 40B.

Social media greatly influences investment decisions

Faqs of Insurances — Fri, 06 Jun 2025 07:12:00 +0000

Social media is a big part of our daily lives, even affecting how we learn about money and investing. Platforms like Reddit, YouTube, Twitter (now X), and Instagram are choc full of people talking about stocks, mutual funds, and cryptocurrencies. But while social media makes investing seem easy and exciting, it also comes with some serious risks.

Too much hype, not enough truth
In recent years, we've seen many examples of social media pushing people to make risky investments. A few posts or videos can go viral, causing thousands of people to buy a stock just because it’s popular, not necessarily safe. Many influencers or "finance gurus" give advice without having the right knowledge or licences. Some do it just to get views or make money from promotions.

This kind of content can mislead people. It may leave out important details or risks. As a result, many new investors end up making decisions based on excitement or fear, instead of careful thinking.

Echo chambers and FOMOSocial media platforms often show you more of what you already like or believe. If you follow high-risk investing content, you’ll keep seeing more of it. This creates an echo chamber where people only hear ideas they already agree with and miss out on other important viewpoints.

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Also, when people see others showing off big profits, it creates FOMO or the fear of missing out. They jump into investments just because others are doing it, without checking if it’s right for them.

Investing based on emotion
Many social media posts are designed to grab attention, not teach. They often show big wins or dramatic losses. This makes investing feel like a game, where people act based on emotion—like fear or greed—instead of facts. This kind of behavior can lead to frequent buying and selling, which hurts more than it helps.

Some influencers also promote certain products or stocks because they get paid to do so. But they may not always say that clearly. This can trick people into trusting advice that isn’t really honest.

Some good news
Not everything on social media is bad for investors. Some trusted voices are now sharing helpful and accurate information online. For example, SEBI-registered advisors, financial educators, and mutual fund companies are posting simple videos, articles, and tips to help people learn.

If you follow the right accounts and ask smart questions, like “Is this person qualified?” or “What’s the risk?”, social media can help you learn more and make better choices.

Final thoughts
Social media has changed how people learn about investing. It can help, but also harm. The key is to be careful, stay curious, and not believe everything you see online.

In the end, investing should be about your goals, not what’s trending. Take your time, learn from trusted sources, and don’t let hype influence your decisions.

*Authored by: Piyush jain, Founder,Paras Finvest.

Disclaimer: The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to the same. TIL does not guarantee, vouch for or necessarily endorse any of the above content, nor is it responsible for them in any manner whatsoever. The article does not constitute investment advice. Please take all steps necessary to ascertain that any information and content provided is correct, updated and verified.

This story originally appeared on: India Times - Author:Faqs of Insurances

With the RBI's repo rate cut in 2025, fixed deposit interest rates are expected to decline, impacting conservative investors

Faqs of Insurances — Fri, 06 Jun 2025 02:47:00 +0000

Fixed deposit (FD) investors will soon start to feel the impact of the Reserve Bank of India's (RBI) third repo rate cut in 2025. On June 6, the RBI’s Monetary Policy Committee (MPC) announced a 50 basis point reduction, bringing down the repo rate to 5.5%. As a result, banks will start reducing their fixed deposit interest rates in response to the lower cost of borrowing. This trend spells concern for conservative investors who rely heavily on FDs for steady and secure returns. Investors are now faced with a narrowing window to lock in higher interest rates, as further cuts or rate stagnation could lead to even lower FD returns in the near future.

Also read: New FD rates from June 1, 2025: PNB, Canara Bank revise interest rates across tenures

FD rates may decline soon

A downward trend is anticipated in the upcoming months, even though it might take some time for the effects of the repo rate cuts to take effect in retail deposit rates. This implies that, particularly for senior citizens, who usually receive interest above regular rates, the current FD interest rates may be among the highest available for some time.

Axis Bank revises ATM transaction fees effective July 1, 2025: Check revised charges

Lock in high FD rates

Many banks are still offering attractive FD rates. For senior citizens, some banks continue to provide interest rates of 8% or more, making this a crucial opportunity to lock in higher returns before further rate revisions kick in.

Bank Name	Interest Rates (p.a.)
	Highest slab
	%	Tenure
SMALL FINANCE BANKS
AU Small Finance Bank	8.25	18 months
Equitas Small Finance Bank	8.55	888 days
ESAF Small Finance Bank	8.25	444 days
Jana Small Finance Bank	8.55	Above 1 year to 3 years
NorthEast Small Finance Bank	9.00	18 months 1 day to 18 months 2 days
Suryoday Small Finance Bank	8.80	Above 30 months to 3 years
Ujjivan Small Finance Bank	8.55	18 months
Unity Small Finance Bank	9.10	1001 days
Utkarsh Small Finance Bank	8.75	2 years to 3 years

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How safe are Small Finance Banks?

According to the AU Small Finance Bank website, “Like other types of banks in India, the RBI regulates and governs SFBs. Therefore, all the banking norms, such as Statutory Liquidity Ratio Requirements, Cash Ratio Reserve Requirements, etc., apply to them. Moreover, the RBI also defines aspects like Eligibility Criteria and Mandatory Promoter Contribution for SFBs. In other words, there are stringent regulations that SFBs must adhere to for their operations. As the RBI regulates the segment, SFBs are as safe as any other type of bank.”

Are small finance banks covered under DICGC?

Yes, small finance banks are covered under Deposit Insurance and Credit Guarantee Corporation (DICGC). Under this, each depositor in a bank is insured up to a maximum of Rs 5,00,000 for both principal and interest amount held by the investor.

This story originally appeared on: India Times - Author:Faqs of Insurances

RBI repo rate cut by 50 bps: The RBI has cut the repo rate and other key rates by 50 bps in today's monetary policy announcement

Faqs of Insurances — Fri, 06 Jun 2025 00:42:00 +0000

The Reserve Bank of India (RBI) has cut the repo rate for the third time this year by 50 basis points. With the latest cut, the repo rate now stands at 5.5%. The cut in the repo rate brings cheers for borrowers but bad news for fixed deposit investors. The banks have been cutting the FD interest rate as the RBI started reducing the repo rate at the start of 2025.

How has FD rate been impacted since February 2025?
The RBI has cut the repo rate by 25 bps each time in February and April 2025. Due to two successive rate cuts, banks have aggressively reduced FD interest rates.

Also read | Big savings for home loan borrowers as EMIs to fall significantly after RBI cuts repo rate by 50 bps

According to the SBI Research report, "FD rates have been reduced in the range of 30-70 bps since February 2025."

Along with the reduction in fixed deposit interest rates, banks are also reducing the interest rates on savings bank accounts. "Banks have already reduced interest rates on savings accounts to floor rate of 2.70%," said SBI in its report.

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Also read | FD interest rates are falling: Can corporate bonds offer better returns with safety?

How much FD rate cuts should investors expect in future?
The RBI has cut the repo rate three times till now. According to the SBI research report, "Transmission to deposit rates is expected to be strong in the coming quarters. 100 bps repo rate cuts are expected in FY26."

This is likely to happen if the CPI inflation remains below the medium-term target of 4%, supporting growth in fighting cyclical downturns, and if credit growth remains muted.

What should be FD investors' strategy as interest rates fall?
There are very limited options available to FD investors when the interest rates are falling in the economy. Here are the steps which they should take to minimise the loss and make the maximum advantage of the current situation.

Book FDs at current high rates
The interest rates on fixed deposits are expected to fall in the upcoming months, however, it may take some time before it actually happens. There are many banks which are still offering FDs at attractive rates. Therefore, it is essential for FD investors to book FDs at current higher rates as soon as possible.

Certain banks are still offering interest rates of 8% or higher for longer-term fixed deposits. However, as most of the highest interest rates currently available on FDs are being offered by Small Finance Banks so you should check the safety of your principal amount. If you book your FDs with any bank which is considered risky it will be better to book your FD in such a way that it is covered under Rs 5 lakh deposit insurance cover. Many major banks are currently offering interest rates of 7% or higher for longer-term fixed deposits.

Going for medium to long term FDs can be beneficial
As interest rate cycle has reversed from rising interest rates to falling interest rates, it may take a while for the interest rate cycle to reach its bottom and make a turn around. While short term FDs will see quick reduction in interest rate, it may take a while for interest rate on medium to long term FDs to fall. Therefore, if you do not have any short-term need, a strategy of locking FDs for medium to long term can be beneficial.

Count on laddering to save from lowest yield
Senior citizens can still count on the laddering strategy to manage their fixed deposits (FDs) in terms of liquidity, returns, and interest rate fluctuations in the future.

FD laddering strategy allows senior citizens to break the investible surplus into different tenures. As the FDs are divided into many parts and different FDs mature regularly, it saves the depositors from the eventuality of renewal risk when interest rates are low. Only a part of the FD corpus will get renewed at lower rate while rest of the FDs will still keep enjoying a higher interest rate. With time the interest rate cycle may turn again. As the FD matures, the proceeds can be used to reinvest at the prevailing rates or utilised as needed. Thus, the depositors can expect to keep getting above-average returns from the laddering strategy.

This story originally appeared on: India Times - Author:Faqs of Insurances

Today, the bond market in India surged to $2.6 trillion, of which $1.3 trillion, or 45%, is made up of corporate bonds

Faqs of Insurances — Wed, 04 Jun 2025 01:00:00 +0000

As a tool of personal investment, corporate bonds have become the difference between reactive investing and proactive wealth building. Serving both the purposes of income generation and portfolio diversification, corporate bonds offer higher return than FDs however at a relatively higher risk.

Capital allocation skewed after the 2010s equity boom, where bonds assumed a central role. Today, the bond market in India surged to $2.6 trillion, of which $1.3 trillion, or 45%, is made up of corporate bonds. Corporate bonds have been benefitting from the headwinds of companies allocating a higher debt component than equity, foreign investors betting on Indian debt, and retail investors finally having a seat at the table.

With the RBI cutting the repo rate to 6%, its second consecutive repo rate cut in 2025 from the earlier 6.25% in February 2025, borrowing has become cheaper than issuing equity, allowing companies to raise capital without diluting ownership. Simultaneously, global investors are pouring money into Indian bonds, drawn by yields of 7-8%, far outpacing developed markets. India's inclusion in JPMorgan Government Bond Index-Emerging Markets (GBI-EM) is set to attract $20-25 billion in foreign capital by 2025. Additionally, retail investors, too, are benefiting from SEBI's reforms, lowering corporate bond entry barriers to INR 10,000.

These currents have propelled corporate bonds to become an important part of a diversified portfolio of investors who have the required risk appetite. With easy online access and tax-efficient options, corporate bonds enable -

Beating Inflation

Inflation is parasitic to your investment portfolio as well as purchasing power. While inflation has moderated in recent quarters, India's structured realities of a large populus, constrained capital base, and reliance on imported commodities mean that inflationary pressures are likely to persist. This is where investors can rely on the right kind of corporate bonds to beat inflation, maintain real returns and protect their portfolios.

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Achieving FIRE Status

Achieving FIRE (Financial Independence, Retire Early) requires a balance between growth, income stability, and risk management. Corporate bonds, with their varying risk levels, offer a structured way to generate passive income, preserve capital, and hedge against market downturns.

Low-risk bonds from stable companies provide fixed income with minimal market fluctuation. Mid-range bonds offer higher returns with moderately higher risk, creating a middle ground between conservative and aggressive investing. High-yield bonds can boost returns however come at very high risk, they should be limited to 10-15% of an investment portfolio to manage risk.

The key is to diversify with different ratings, to coat your portfolio from macroeconomic swings, while generating steady income. Inflation-protected bonds add an extra layer of security by maintaining purchasing power over time. This approach isn't about getting rich quickly but building a sustainable financial strategy that supports long-term wealth accumulation and reduces dependency on traditional employment income.

Retirement Planning

Retirement is the time of your life when you have zero active income, but your expenses are far from halting. Around 70% of senior citizens in India are dependent on their families for maintenance. 78% of them do not have pension coverage.

An effective retirement-ready portfolio offers steady income, corpus protection, and inflation-beating returns. For this purpose, Senior secured bonds work well. Senior secured bonds are low-risk debt securities issued by corporations to raise capital while working towards investor protection. These bonds are backed by specific collateral assets such as real estate, cash, or other valuable holdings, reducing default risk.

Their priority ranking over unsecured or subordinated bonds ensures investors receive payments first in case of liquidation of the bond issuing company. These bonds offer fixed interest payments and lower volatility compared to stocks and mutual funds, making them an option for investors who intend to avoid risk related to unsecured debt as they age. A dedicated corpus to corporate bonds acts as stabilisers in your portfolio, offsetting potential losses in the stock market.

Bonds aren't risk-free but they are smarter

Every investor's journey comes with landmines. From interest rate fluctuations that can deflate bond prices, credit risks lurking in lower-rated securities, to the treacherous terrain of liquidity that can trap your capital. These are not warning signs to retreat, but challenges to navigate strategically.

Smart money does not shy away from complexity, it masters it. From risk-averse retirees to ambitious wealth builders, these instruments offer a tailored approach to wealth accumulation. While equity markets swing wildly, bonds are an anchor that ensures steady income, protects purchasing power, and offers a lifeline when market volatility threatens to sink your portfolio's ship.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

This story originally appeared on: India Times - Author:Faqs of Insurances

Canara Bank and Punjab National Bank (PNB) have adjusted their fixed deposit (FD) interest rates for retail term deposits under Rs 3 crore, effective June 1, 2025

Faqs of Insurances — Tue, 03 Jun 2025 02:53:00 +0000

Canara Bank and Punjab National Bank (PNB) have revised their fixed deposit (FD) interest rates on retail term deposits less than Rs 3 crore, effective June 1, 2025. While both banks have cut rates on several key tenures, PNB has also increased rates on select long-term deposits.

Latest Canara Bank FD interest rates

Canara bank offers FD interest rates on callable fixed deposits between 4% and 7% for general customers, and between 4% and 7.50% for senior citizens. The rates are effective from June 1, 2025
For the one-year tenure, Canara Bank has reduced the FD interest rate by 10 basis points (bps), from 6.85% to 6.75%. For FD tenures of 3 years and above but less than 5 years, the rate has been lowered by 25 bps, from 7% to 6.75%.

Axis Bank revises ATM transaction fees effective July 1, 2025: Check revised charges

Term Deposits (All Maturities)	General Public	Senior Citizen
Term Deposits (All Maturities)	Rate of Interest (% p.a.)	Rate of Interest (% p.a.) #
7 Days to 45 Days	4	4
46 Days to 90 Days	5.25	5.25
91 Days to 179 Days	5.5	5.5
180 Days to 269 Days	6.15	6.65
270 Days to less than 1 Year	6.25	6.75
1 Year Only	6.75	7.25
444 Days	7	7.5
Above 1 Year to less than 2 Years	6.85	7.35
2 Years & above to less than 3 Years	6.9	7.4
3 Years & above to less than 5 Years	6.75	7.25
5 Years & above to 10 Years	6.7	7.2

Latest PNB FD interest rates

Punjab National Bank (PNB) has once again revised its fixed deposit (FD) interest rates for retail deposits less than Rs 3 crore. The new rates are effective from June 1 2025.

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After revision, Punjab National Bank offers fixed deposit interest rates between 3.50% and 6.90% for tenures ranging from 7 days to 10 years for general citizens. The highest interest rate of 6.9% is offered on a tenure of 390 days. Earlier, the highest interest rate of 7% was offered on a tenure of 390 days.

For senior citizens, the bank offers interest rates ranging from 4.00% to 7.40%. For super senior citizens, the rates are slightly higher, ranging from 4.30% to 7.70% after revision.

For FD tenures of more than 1 year to 389 days, Punjab National Bank (PNB) has reduced the FD interest rate by 10 basis points (bps), from 6.80% to 6.70%. On the 390-day tenure, the rate has been revised from 7% to 6.90%. For tenures ranging from 391 days to 505 days, the rate has been lowered from 6.80% to 6.70%, while the 506-day tenure now offers 6.60%, down from 6.70%. For tenures between 507 days and 2 years, the rate has been cut from 6.80% to 6.70%. Additionally, for deposits with tenures of over 2 years up to 3 years, the interest rate has been reduced by 5 bps, from 6.75% to 6.70%.

For the 1204-day tenure, Punjab National Bank (PNB) has increased the FD interest rate by 25 basis points (bps), from 6.15% to 6.40%. For tenures ranging from 1205 days to 5 years, the rate has been raised from 6.25% to 6.50%, also reflecting a 25 bps hike.

Sl. No	Period	Revised Rates For Public w.e.f. 01.06.2025	*Revised Rates for Senior Citizens w.e.f. 01.06.2025	#Revised Rates for Super Senior Citizens w.e.f. 01.06.2025
1	7 to 14 Days	3.5	4	4.3
2	15 to 29 Days	3.5	4	4.3
3	30 to 45 Days	3.5	4	4.3
4	46 to 60 Days	4.5	5	5.3
5	61 to 90 Days	4.5	5	5.3
6	91 to 179 Days	5.5	6	6.3
7	180 to 270 Days	6	6.5	6.8
8	271 Days to 302 Days	6.25	6.75	7.05
9	303 Days	6.15	6.65	6.95
10	304 Days to < 1 Year	6.25	6.75	7.05
11	1 Year	6.7	7.2	7.5
12	> 1 Year to 389 days	6.7	7.2	7.5
13	390 days	6.9	7.4	7.7
14	391 Days-505 Days	6.7	7.2	7.5
15	506 Days**	6.6	7.1	7.4
16	507 Days to 2 year	6.7	7.2	7.5
17	> 2 years to 3 years	6.7	7.2	7.5
18	> 3 years to 1203 days	6.5	7	7.3
19	1204 days**	6.4	6.9	7.2
20	1205 days to 5 years	6.5	7	7.3
21	> 5 years to 1894 days	6	6.8	6.8
22	1895 days**	5.85	6.65	6.65
23	1896 days to 10 years	6	6.8	6.8

This story originally appeared on: India Times - Author:Faqs of Insurances

The Reserve Bank of India provides the Liberalised Remittance Scheme

Faqs of Insurances — Sun, 01 Jun 2025 21:00:00 +0000

1. LRS is a facility provided by the Reserve Bank of India (RBI) that allows resident individuals in India to send money abroad.

2. Individuals can remit up to $2,50,000 per financial year (April– March) without special permission from the RBI

3. Only resident individuals, including minors (through a guardian), are eligible. The scheme does not apply to companies, partnerships, or trusts.

4. Funds can be remitted for various purposes, including education and medical expenses abroad, travel, gifting and donations, investments in foreign stocks, bonds, real estate, and deposits.

5. Depending on the purpose, tax collected at source, or TCS, of up to 20% may be applicable on the remitted amount.

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Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

This story originally appeared on: India Times - Author:Faqs of Insurances

Low-duration funds invest in short-term debt instruments

Faqs of Insurances — Sun, 01 Jun 2025 21:00:00 +0000

Low duration funds

Low-duration funds are debt mutual funds that invest in debt and money market instruments with an average maturity of six to 12 months. They are suited to investors seeking relatively stable returns over a short-term horizon of six months to a year, offering a balanced mix of liquidity, returns, and lower sensitivity to interest rate changes.

Where do these invest?

Low-duration funds primarily invest in a mix of short-term instruments, such as certificates of deposit (CDs), commercial papers (CPs), treasury bills, and short-term corporate bonds. The lower average maturity of the underlying securities helps reduce the impact of interest rate fluctuations, making these less volatile comparedd to long-duration debt funds.

Why consider these

These funds are useful during uncertain interest rate environments. Since these invest in short-term instruments, the fund manager can adjust the portfolio more frequently based on changing market conditions. For risk-averse investors who want better returns than traditional savings or fixed deposits without locking in funds for long periods, low-duration funds offer an attractive middle path.

How to invest

Investors can access low-duration funds through mutual fund platforms, banks, or financial advisors. It is advisable to review the fund’s credit quality, expense ratio, historical performance, and experience of the fund management team. While these funds aim to preserve capital, credit risk cannot be completely eliminated. So investing in schemes with high-rated instruments is prudent.

Points to note

• Low-duration funds are best suited to short-term goals or as part of a larger asset allocation strategy.

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• Avoid using these funds for goals that demand complete capital protection in the short term.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava, and Labdhi Mehta.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

This story originally appeared on: India Times - Author:Faqs of Insurances

After years in the doldrums, Indias chemicals sector is stirring back to life

Faqs of Insurances — Sun, 01 Jun 2025 21:00:00 +0000

After a lull of about three years, India’s chemicals sector now appears poised for an upgrade. If you are looking for a contrarian investment strategy, then you might want to take a small exposure to this sector. Here’s why.

On a rebound

The sector saw a marginal but noticeable improvement in performance during the January–March 2025 quarter. While much of the gain can be attributed to the low base effect, analysts remain optimistic. Of the 32 companies tracked by Reuters-Refinitiv (with estimates from at least two analysts), 19—or 59.3%—beat net profit expectations for the quarter.

Anuj Jain, Co-founder of Green Portfolio PMS, says the March quarter results signal the beginning of an upcycle in the chemicals industry after a pause of nearly 2–3 years. Though valuations remain high for several large-cap stocks in the sector, many mid- and small-cap companies are still available at attractive valuations.

A bleak past

The chemicals sector has faced persistent headwinds over the past few quarters due to muted demand, weak realisations amid pricing pressures, inventory destocking in the agrochemicals segment, and heightened competition from China. Data compiled from the Reuters-Refinitiv database for 139 chemical companies with a market cap of more than Rs.100 crore shows dismal aggregate revenue growth of just 2% and 3.4% in the June and September quarters of 2024-25, on a year-on-year basis.

Nearly 54% of these companies underperformed the Nifty 500 index over the last year, while 66% lagged the broader market benchmark in 2025 year-to-date.

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Brokers upbeat, but wary

A pick-up in domestic demand for RACs (room air conditioners) and the sheer rise in demand for gas used in refrigeration and air conditioning is expected to bode well for the sector. While a B&K Securities report highlights that the weakening of competition from within the European Union will open up export opportunities for Indian companies, it also cautions against the continued threat of strong competition from China.

On the other hand, a gradual recovery is expected in the agrochemicals segment, supported by the rising demand for newer, innovative products and biological alternatives. A Motilal Oswal report released in March 2025 notes that prices in the global crop protection industry are likely to bottom out in 2025 across all key regions and product segments, paving the way for a more stable growth trajectory ahead.

The B&K Securities report notes that a sustained recovery in demand from the EU27 block is crucial to boosting the export growth potential of the Indian chemicals industry. It adds that with inventory de-stocking now largely complete in European markets, both demand and volumes are expected to drive growth going forward.

Challenges

The US trade tariffs, low-cost dumping by Chinese manufacturers, and weak demand in Europe remain some of the major concerns for the sector. An April 2025 Kotak Securities report expresses hope for a decent recovery over 2024–25 and 2026–27. However, in the event of a prolonged tariff war, it cautions that there could be more substantial downside risk to these expectations. Here are three companies worth considering for a small exposure. These firms have reported double-digit growth in net earnings for the March 2025 quarter and enjoy the highest level of analyst coverage within the sector.

SRF

Q4 revenue and net profit beat estimates by 7.4% and 9.3%.
Strong performance in specialty chemicals, refrigerant gases, and packaging films.
2025-26 revenue guidance at 20% growth.
Elara Capital maintains an ‘accumulate’ rating, expecting gains from recovering demand.

Navin Fluorine

Q4 revenue and EBITDA beat estimates by 2.4% and 7.9%.
CDMO (Contract Development and Manufacturing Organisation) and high-performance products drove growth.
Refrigerant gas demand and better pricing supported performance.
Management targets ~25% EBITDA margin in 2025-26.
Prabhudas Lilladher sees strong long-term growth potential.

UPL

Q4 revenue and EBITDA beat estimates by 3.6% and 9.9%.
Growth is driven by strong volumes, and inventory normalisation.
2025-26 revenue growth guided at 4-8%, led by volumes.
Recovery in key markets and new products to aid growth.
Antique sees balance sheet improving and growth momentum continuing.

This story originally appeared on: India Times - Author:Faqs of Insurances

Equity investors are increasingly being asked by their brokers to use liquid ETFs for better trading

Faqs of Insurances — Sun, 01 Jun 2025 21:00:00 +0000

Direct equity investors are increasingly embracing liquid exchange-traded funds (ETFs) to optimize their trading activity. Brokers are also encouraging clients to transfer unutilised funds into liquid ETFs. Their pitch is simple: rather than juggling money back and forth between the trading account and bank account, investors can park excess funds in liquid ETFs. So are equity trading and liquid ETFs a match made in heaven?

A marriage of convenience

In equity trading or investing, timing is critical. You need quick access to money to take advantage of any mispricing. But keeping idle surplus in the bank account is a low-yield proposition. This is where liquid ETFs step in.

There are two benefits of using liquid ETFs in trading. One, these can help you manage cash flows seamlessly, without missing a beat. Two, these allow more productive use of your idle money.

When you sell equity shares on an exchange, you may simultaneously purchase an equal amount of units of a liquid ETF via the broker. The liquid ETF units get credited in the demat account on T+1 day—the same day as the payout from proceeds of the share sale. Now, you can continue holding on to the liquid fund units till you are ready to redeploy. Your money will continue fetching returns via the liquid ETF rather than earning savings bank account interest.

When a buying opportunity arises, you can then sell the liquid ETF units. The money will be credited to your trading account with the broker the following day, but you can immediatelyly avail yourself of the limit to buy shares via your demat account. Essentially, liquid ETF units are equivalent to money in your trading account.

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“This seamless experience is possible as liquid ETFs trade in the same segment as equities,” asserts Zerodha Fund House CEO Vishal Jain. In any other vehicle, including a liquid fund, the investor would have to wait for the payout to hit the bank account and transfer it back, which could result in lost opportunities.

HOW IT WORKS
1. When selling shares, simultaneously purchase liquid ETF units of equal amount.
2. Units get credited on T+1 day, along with payout from share sale.
3. Continue holding liquid ETF units until you redeploy.
4. When a buying opportunity arises, sell liquid ETF units.
5. Money gets credited on T+1 day, but you get a limit immediately to buy shares.
6. Additionally, liquid ETFs can be pledged to acquire margin for trading in F&O.

This solution works in favour of brokers as well. At present, every broker is mandated to transfer unutilised client funds back to the latter’s bank account at the end of each month. Liquid ETFs save brokers the hassle of carrying out monthly settlements while avoiding fund outflows and retaining assets in their fold. “It is a matter of convenience for both the investor and the broker. It is why many brokers are not charging for the buying and selling of liquid ETFs,” observes Juzer Gabajiwala, Director, Ventura Securities.

Additionally, you can pledge liquid ETF units held in your demat account to acquire margin for trading in the futures and options (F&O) segment. The margin received from liquid ETF holdings is treated as a cash equivalent by exchanges. “Many traders pledge units of liquid ETFs as collateral and take exposure against it,” says Zerodha’s Jain.

Liquid ETFs and equity trading

Key benefits

No transfer hassles: Does away with transferring idle funds between trading accounts and bank accounts.
Equivalent to cash: Enables seamless transition from equities to cash and vice versa.
Earn more on idle money: Fetch higher returns on unutilised funds than bank savings accounts.

What to watch for

Not akin to liquid funds.
Returns are similar to overnight rates.
These levy higher expense ratios than liquid funds.
No STT and brokerage levied, but exchange and statutory levies will apply.
Low trading volumes in some liquid ETFs.

Liquid, but with a twist

But what are these liquid ETFs anyway? Unlike what the name suggests, liquid ETFs are not the same as liquid funds. Besides the fact that liquid ETFs are traded on exchanges in real-time, whereas liquid funds aren’t, there are other differences.

One, these invest differently. Liquid ETFs primarily invest in overnight securities, i.e., tri-party repos (TREPs), whereas liquid funds park money in instruments with maturity up to 91 days. Liquid funds levy a graded exit load if sold within seven days of purchase. Also, liquid ETFs charge no exit loads, offering liquidity without restrictions.

To be sure, liquid ETFs have been around for many years. Benchmark Mutual Fund’s Liquid BeES (now under Nippon India MF) was the first liquid ETF offering in the country in 2003. A few more came later. However, these funds were constrained by virtue of being income distribution-cum-capital withdrawal (IDCW) plans. Dividends are now taxed in the hands of the investor at his or her slab rate. This made traditional liquid ETFs tax inefficient. Further, in some liquid ETFs, the dividend payout accrued in the form of additional units and not cash payouts. This complicated the tax calculations for investors.

However, last year, Zerodha MF’s offering Nifty 1D Rate Liquid ETF marked the arrival of liquid ETFs with a growth NAV for the first time in India. Unlike the returns of IDCW liquid ETFs, the returns in the growth plans are reflected in their day-to-day NAV movement instead of dividend payouts. Only the gains are taxable when sold by the investor.

“Further, it removes the hassle of dividend accounting and tracking payouts, making it a simpler proposition for investors,” says Jain. Since Zerodha’s liquid ETF, several players have launched similar products. Many of these firms—AngelOne, Groww, Mirae, among others—have both stock broking and mutual fund arms.

What to watch for

Liquid ETFs can power your trades with a seamless experience. These allow you to earn better returns while maintaining liquidity. There is negligible credit risk and interest rate risk in liquid ETFs, making them a safe option to park money.

However, investors in liquid ETFs can expect only money market-like returns. According to Value Research, open-ended liquid funds have yielded 7.28% in the past year. Meanwhile, liquid ETFs have averaged 6.1%, similar to overnight funds’ 6.4%. Yet, this is better than earning a bank savings account interest rate of 3% or even lower. “A liquid ETF is not comparable to a liquid fund. It is akin to an overnight fund. Use it for the convenience it offers in trading, not for returns,” remarks Gabajiwala.

Prominent liquid ETF offerings

Further, liquid ETFs charge relatively higher expense ratios, averaging 31 basis points compared to liquid funds’ 15 basis points. Other exchange and statutory levies also apply, even if liquid ETFs are not subject to securities transaction tax (STT). Also, make sure to pick liquid ETFs supported with high trading volumes, or else liquidity will only turn out to be illusory.

This story originally appeared on: India Times - Author:Faqs of Insurances

Attention fixed deposit investors, today is the final day to secure FD at rates as high as 9.10% per annum

Faqs of Insurances — Fri, 30 May 2025 23:21:00 +0000

For fixed deposit investors, today is the last date to book FD at higher rate of up to 9.10% per annum. This is because Suryoday Small Finance Bank announced a revision in FD interest rates effective from June 1, 2025. The revision in FD rates will impact both general public and senior citizen investors. Notably, the bank is currently offering one of the most attractive FD interest rates in the market — up to 9.10% per annum on five-year FD tenure for senior citizens.

Special FD interest rate up to 7.8%: IDBI Bank revises FD rates across special deposits, check Utsav FD deadline

This highest FD interest rate of 9.10% is applicable for a 5-year deposit tenure and is available only until May 31, 2025. That means investors have just today to take advantage of this high return before the revised, likely lower, rates come into effect.

Why banks are revising FD rates now

In the recent months, banks are on the spree to revise the FD interest rates. This includes both for their regular FDs and special FDs launched. FD interest rates are revised because the Reserve Bank of India (RBI) has cut the repo rate from the start of 2025. In total, RBI has cut repo rate by 50 basis points. The next policy is on June 6, 2025, where RBI can cut repo rate again due to low inflation.

New FD rates from June 1, 2025, for Senior Citizens

For senior citizens, the revised FD rates will be between 4.4% and 8.8% per annum, starting June 1, 2025. The highest FD interest rate of 8.8% is offered on tenure above 30 months to 36 months. The bank has uniformly reduced rates by 10 bps across all tenures, while the 5-year FD tenure sees the sharper cut of 70 bps-down from 9.1% to 8.4%.

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Till May 31, 2025, the bank offers highest FD interest rate 9.10 % on tenure of 5 Years.

New FD rates from June 1, 2025 for general public

From June 1, 2025, Suryoday Small Finance Bank will offer interest rates on FDs ranging from 4% to 8.4% for general citizens on deposits below Rs 3 crore. The high FD rate of 8.4% is offered tenure above 30 months to 36 months. The most notable change is in the 5-year FDs, where the interest rate has been reduced by 60 basis points (bps)-from 8.6% to 8%.

Till May 31, 2025, the bank offers highest FD interest rate 8.6% on tenure of 5 Years.

New rates from June 1, 2025

Period	Interest Rate (Per Annum)	Senior Citizen Rate (Per Annum)
7 Days to 14 Days	4.00%	4.40%
15 Days to 45 Days	4.25%	4.65%
46 Days to 90 Days	4.50%	4.90%
91 Days to 6 Months	5.00%	5.40%
6 Month 1 Day	7.25%	7.65%
Above 6 Month 1 Day to 9 Months	5.50%	5.90%
Above 9 Months to less than 1 Year	6.00%	6.40%
1 Year	7.90%	8.30%
Above 1 Year to 15 Months	8.00%	8.40%
Above 15 Months to 18 Months	8.25%	8.65%
Above 18 Months to 2 Years	8.10%	8.50%
Above 2 Years to 30 Months	8.15%	8.55%
Above 30 Months to 36 Months	8.40%	8.80%
Above 3 Years to less than 5 Years	6.75%	7.15%
5 Years	8.00%	8.40%
Above 5 Years to 10 Years	7.25%	7.65%

FD rates till May 31, 2025

Period	Interest Rate (Per Annum)	Senior Citizen Rate (Per Annum)
7 Days to 14 Days	4.00%	4.50%
15 Days to 45 Days	4.25%	4.75%
46 Days to 90 Days	4.50%	5.00%
91 Days to 6 Months	5.00%	5.50%
6 Month 1 Day	7.25%	7.75%
Above 6 Month 1 Day to 9 Months	5.50%	6.00%
Above 9 Months to less than 1 Year	6.00%	6.50%
1 Year*	7.90%	8.40%
Above 1 Year upto 15 Months	8.00%	8.50%
Above 15 Months to 18 Months	8.25%	8.75%
Above 18 Months to 2 Years	8.10%	8.60%
Above 2 Years to 30 Months	8.15%	8.65%
Above 30 Months to 36 Months	8.40%	8.90%
Above 3 Years to less than 5 Years	6.75%	7.25%
5 Years	8.60%	9.10%
Above 5 Years to 10 Years	7.25%	7.75%

This story originally appeared on: India Times - Author:Faqs of Insurances

IDBI Bank is set to revise interest rates on fixed deposits, Utsav FD scheme, and savings accounts

Faqs of Insurances — Fri, 30 May 2025 07:27:00 +0000

IDBI Bank has announced revision of its interest rates across key deposit products, including regular fixed deposits (FDs), the special Utsav Fixed Deposit scheme, and savings bank accounts. The updated rates have come into effect from May 16, 2025.

IDBI Bank Utsav Fixed Deposit

The special Utsav Callable FD tenures of 444, 555, and 700 days offer high interest rates The rates are:
444 days: 7.10% (general), 7.60% (senior)
555 days: 7.15% (general), 7.65% (senior)
700 days: 7.00% (general), 7.50% (senior)
The above rates are effective till June 30, 2025.

Also read: Highest FD returns: SBI, HDFC, ICICI and Canara Bank, which one gives the maximum interest on Rs 5 lakh deposit

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Special Buckets	General/NRE/NRO	Senior Citizens
444 Days	7.1	7.6
555 Days	7.15	7.65
700 Days	7	7.5

Note that the Utsav FD tenures of 300 days and 375 days have been discontinued from April 16, 2025.
Earlier, the bank was offering 7.25% on 444-day tenure for general citizens, 7.75% for senior citizens. On a tenure of 555 days, the bank offers 7.3% for general citizens and 7.8% for senior citizens.

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Latest IDBI Bank FD rates

IDBI Bank has also revised its term deposit interest rates for deposits less than Rs 3 crore. After revision, the bank offers FD interest rate between 3% and 7% (excluding special deposits) for general citizens. For senior citizens, the bank offers between 3.50% and 7.50% for tenures between 7 days and 10 years. The revised rates are effective from May 16, 2025.

Interest Rate (% p.a.)
Retail Term Deposits (< 3 Cr)
Maturity Slab	General Customers	Sr. Citizen
0-6 Days	NA	NA
07-30 days	3	3.5
31-45 days	3.25	3.75
46- 60 days	4.5	5
61- 90 days	4.75	5.25
91 days to 6 months	5.5	6
6 months 1 day to 270 Days	6	6.5
271 days to < 1 year	6.25	6.75
1 Year to 2 Years	6.8	7.3
(except 444 Days, 555 days & 700 Days)	6.8	7.3
> 2 Years to <3years	7	7.50
3 years to 5 years	6.5	7
>5 years to 10 years	6.25	6.75
>10 years to 20 years$	4.8	5.30
	Tax Saving FD
5 Years	6.5	7

For tax-saving FDs with a 5-year lock-in period, the interest stands at 6.50% for general customers and 7.00% for senior citizens.

IDBI Chiranjeevi-Super Senior Citizen FD

IDBI Chiranjeevi-Super Senior Citizen FD exclusive for resident individuals aged 80 years. Super senior citizens investing in a tenure of 444 days, the interest rate offered is 7.75% per annum. Interest rate for the 555-day deposit can earn a return at 7.80%, while the 700-day deposit offers an interest rate of 7.65% per annum.

Special Buckets	Senior Citizens
444 Days	7.75
555 Days	7.8
700 Days	7.65

Savings account interest rate update:
From May 16, 2025, interest rates on savings bank account balances have been revised. For balances up to Rs 1 lakh, the rate remains 2.70% per annum. Balances above Rs 1 lakh and up to Rs 5 crore will earn 2.75% p.a. Accounts holding between Rs 5 crore and Rs 100 crore will now earn 3.25% p.a.

For balances exceeding Rs 1,000 crore, floating interest rates linked to MIBOR (Mumbai Interbank Offered Rate) will apply starting June 1, 2025. The applicable rates vary as follows:
Rs 1,000–1,500 crore: MIBOR +10 bps
Rs 1,500–2,000 crore: MIBOR +40 bps
Rs 2,000–5,000 crore: MIBOR +70 bps
Over Rs 5,000 crore: MIBOR +55 bps
Note that MIBOR-linked interest will apply to the entire balance above Rs 1 lakh if the end-of-day balance exceeds Rs 1,000 crore.

This story originally appeared on: India Times - Author:Faqs of Insurances

NRIs face a complex decision when it comes to choosing between investing in India, driven by emotional ties and growth potential, or in their country of residence, offering stability and familiarity

Faqs of Insurances — Thu, 29 May 2025 23:30:00 +0000

Choosing where to invest their riches is a very personal and complicated financial decision for millions of Non-Resident Indians (NRIs). Is it wise to invest in India, a country with which you have a strong emotional bond and which is known for its future growth potential, or where one lives and makes money in foreign markets? This conundrum involves purpose, risk, and long-term planning in addition to geography.

The Emotional Pull of India

If you invest in Indian, there is a cost associated with emotional investing. The Indian rupee has depreciated nearly 4% annually over the last decade against the U.S. dollar. This erosion in currency value can substantially reduce global purchasing power, especially when future financial goals are international. Inflation in India, averaging 4-6% annually, further impacts real returns if investments aren’t structured correctly.

The Practical Appeal of Global Investing

On the other hand, investing in one's country of residence (abroad) offers regulatory ease, tax clarity, and exposure to mature financial markets. Developed economies provide stable investment vehicles such as retirement accounts, global ETFs, and government bonds, which are ideal for long-term, low-risk growth.

Yet many NRIs hesitate due to unfamiliarity or limited access to cross-border advisory services. U.S.-based NRIs, for example, must navigate complex IRS regulations around passive foreign investment companies (PFICs) if they hold Indian mutual funds, often leading to hefty tax liabilities.

It's Not Either-Or—It's About Balance

The key insight is this: the debate shouldn't be India vs. abroad. Instead, NRIs must aim for a globally diversified, tax-efficient portfolio that aligns with their personal and financial goals.

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Principle 1: Begin With Your Goals
Every financial journey must begin with clear, specific goals. Are you saving for retirement in India, your children’s education abroad, or simply building long-term wealth? Your investment geography should mirror the end-use of your funds. Someone retiring in India would benefit from INR-linked assets, while those with dollar-denominated expenses should hedge against rupee depreciation.

Principle 2: Diversify Across Currencies and Assets
Overexposure to INR-based assets can amplify currency risk. A diversified portfolio—including Indian equity and debt, U.S. index funds, REITs, and FCNR deposits—can help mitigate this. Currency hedging tools and global mutual funds can also protect and grow wealth.

Principle 3: Stay Compliant
Regulatory compliance is critical. NRIs must avoid using resident accounts after changing their status. Converting accounts to NRO/NRE/FCNR and understanding FEMA rules are essential. Additionally, using Double Taxation Avoidance Agreements (DTAAs) and filing relevant paperwork like Form 10F and Tax Residency Certificates can help avoid unnecessary tax deductions.

Principle 4: Plan for Liquidity and Succession
Many NRIs overlook the importance of liquidity. Real estate and fixed deposits might seem safe, but they lack flexibility in emergencies. Equally important is estate planning. Without an India-specific Will or nominee declarations, heirs can face prolonged legal battles and delays.

Principle 5: Get the Right Advice
Taking investment advice from friends or unregulated agents is risky. Instead, work with SEBI-registered financial advisors who understand NRI-specific challenges, especially those who can coordinate cross-border tax and investment strategies.

Final Thoughts
India has a lot of room to expand, especially in the infrastructure and equity sectors. International markets offer diversification and stability. NRIs should concentrate on building a portfolio that fits their financial goals, risk tolerance, and regional priorities rather than making a snap decision.

As someone who counsels Indian families living abroad, my advice is straightforward: don't let convenience or feelings influence your investing choices. Let your objectives, regulatory requirements, and worldview inform a plan that genuinely creates and preserves wealth.

Cross-border wealth requires cross-border thinking in the modern world. In your portfolio, India and overseas may coexist; the secret is to know how to balance them properly.

This story originally appeared on: India Times - Author:Faqs of Insurances

Overseas Citizens of India (OCI) cardholders, aged 18-70, can invest in the National Pension Scheme (NPS) on either a repatriation or non-repatriation basis

Faqs of Insurances — Thu, 29 May 2025 23:30:00 +0000

Did you know that Overseas Citizens of India (OCI) cardholders, who are individuals of Indian heritage presently holding foreign citizenship, are allowed to hold an NPS (National Pension Scheme) account in India?

OCI cardholders can stay for indefinite periods in India without having to apply for a visa every single time, since having an OCI card grants them a multiple-entry lifelong visa for visiting India. In case they wish to stay here for extended periods, or for as long as they want, OCI cardholders can voluntarily open an NPS account “applicable to resident Indians,” according to NSDL. However, note that OCIs are not permitted to open NPS Tier-II accounts.

Read on to know what documents you need to open an NPS account as an OCI cardholder and steps to close it in case you have acquired foreign citizenship and have not received their OCI card.

Can OCI cardholders open and hold NPS accounts?

Yes, all OCI cardholders aged between 18 and 70 years are eligible to open an NPS account on either a repatriation or non-repatriation basis.

Explains CA Ashish Niraj, Partner, ASN & Company Chartered Accountants, “For OCIs, both repatriation and non-repatriation basis options are available in NPS. Repatriation basis means that the proceeds can be taken back to the investor’s home country. Non-repatriation basis means that proceeds should remain in India and cannot be taken back by the investor.

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This means that OCIs have the choice to either remit or send their lump-sum withdrawal from NPS or their monthly pension received from India to the country of which they now hold citizenship, or not do so, i.e., not transfer back these funds to that country.

In NPS, subscribers can partially withdraw from tier-1 accounts for specific purposes, and such partial withdrawal is tax-free. For lump-sum withdrawal, a maximum of 60% of total corpus is allowed, which will also be tax-free

To open an NPS account with NSDL using an Aadhaar or PAN card, OCIs will have to provide a scanned copy of their OCI card, proof of their foreign address, and their scanned signatures, according to the NSDL website.

Applicants are also required to provide the details of NRE/NRO accounts only, along with a cancelled check/copy of bank passbook/bank statement/bank certificate/letter from the bank containing the applicant’s name, bank name, bank account number, and IFS/SWIFT code, per the NSDL site.

Which account can OCIs use for contributing to NPS?

Note that NPS contributions can only be made through an OCI cardholder’s NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account. However, in case the OCI NPS subscriber wishes to repatriate, or send back, their funds, they should take care to make their NPS contributions only via their NRE a/c. This is because only NRE, and not NRO a/cs allow individuals to remit back funds to their country of residence at any time, without any limits.

As for annuities, according to the NDSL website, “Annuity payable by ASPs (annuity service provider) to NRIs and OCIs will be taxed at source, at rates applicable as per the DTAA (Double Taxation Avoidance Agreements) of the country where the annuitant resides”,

Niraj adds, saying that while TDS will be applicable on pension received from annuity, subscribers can take advantage of DTAA in their country if there is a DTAA with that country. “Since in NPS, the minimum rate of return is higher compared to normal saving instruments, OCIs, for whom this avenue was opened in 2019, should explore investing in it,” he adds.

Can I hold an NPS account if I don’t have an OCI card?

If an NPS subscriber has renounced their Indian citizenship and hasn’t received or applied for an OCI card, they are not eligible to hold an NPS account.

A recent circular mandated that all NPS subscribers who have validly renounced their Indian citizenship and do not hold an OCI card will have their PRAN/NPS account closed, and “the entire accumulated pension wealth may be transferred to a Non-Resident Ordinary (NRO) account.”

Explains Rajesh Khandagale, SVP-NPS, KFin Technologies, “The subscriber will have to submit an application for closure of his/her NPS account along with an undertaking stating that he/she has renounced his/her Indian citizenship and does not hold an OCI card. They should also attach a valid certificate of renunciation of Indian citizenship/surrender certificate/cancelled Indian passport issued by a competent authority.”

Note that the total accumulated pension wealth of the subscriber in the PRAN shall be transferred only to the NRO account of the subscriber, in accordance with the FEMA guidelines issued by the RBI.

According to RBI guidelines, balances in an NRO account of NRIs (which includes OCIs) are remittable up to $1 million per financial year (April-March) along with their other eligible assets, as per Foreign Exchange Management (Remittance of Assets) Regulations, 2016. Fund transfers from NRO to NRE accounts also need to be within this limit.

This story originally appeared on: India Times - Author:Faqs of Insurances

8.25% interest rate for EPF for FY 2024-25: The Central Government has approved an 8.25% interest rate for FY 2024-25, which ended on March 31, 2025

Faqs of Insurances — Wed, 28 May 2025 03:49:00 +0000

According to a PTI report, the central government has approved an interest rate of 8.25% for Employees' Provident Fund (EPF) account holders for FY 2024-25. The interest rate has been ratified following the EPFO's recommendation to the central government.

With this official confirmation, the EPFO can now start the process of crediting interest to the EPF account holders. Further, if your EPF account is held with an exempted trust, then the EPF trust can also follow the process of crediting interest on balances held during the financial year 2024-25.

ET Wealth online tells you how much interest you will get on your EPF balance, when the interest will start reflecting in your EPF account, and if you lose any interest on the EPF account due to a delay in EPF credit.

How much EPF interest will be credited to your account?
Para 60 of the EPF scheme 1952 defines the rule for calculating the interest for the EPF account. As per the scheme rules, interest is calculated on the monthly running balance and is credited at the end of the financial year.

To know how much interest will be calculated on your EPF account balance, it is important to know your and your employer's contributions to the EPF account.

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Here is an example to understand this. Suppose your EPF balance is Rs 5 lakh on April 1, 2024. This includes previous EPF contributions and interest earned on them. During the FY 2024-25, your basic monthly salary was Rs 50,000. As per the EPF scheme rules, an employee contributes 12% of the basic salary to the EPF account, and the employer also makes the matching contribution.

Hence, you will deposit Rs 6000 per month. Your employer will also make a matching contribution of Rs 6000. However, the full amount will not go into your EPF account. Out of the employer's contribution, 8.67% will go to the Employees' Pension Scheme (EPS) typically with a limit of Rs 1,250 per account, and the balance will go to the employee's EPF account. Your employer's monthly contribution to the EPF account will be Rs 4,750.

The interest accrued to your EPF account varies monthly. This will be calculated as follows:

Month	EPF deposit (In Rs)	EPF deposits for interest calculation (In Rs)	Monthly interest (In Rs)
Apr-24	10750	510750	3511.41
May-24	10750	521500	3585.31
Jun-24	10750	532250	3659.22
Jul-24	10750	543000	3733.13
Aug-24	10750	553750	3807.03
Sep-24	10750	564500	3880.94
Oct-24	10750	575250	3954.84
Nov-24	10750	586000	4028.75
Dec-24	10750	596750	4102.66
Jan-25	10750	607500	4176.56
Feb-25	10750	618250	4250.47
Mar-25	10750	629000	4324.38
Total EPF interest in FY 2024-25			47014.69

For FY 2024-25, the interest of Rs 47,014.69 will be credited to your EPF account.

When will the EPF interest be credited to your EPF account?

Crediting of EPF interest generally takes a long time. Usually, EPF interest is credited to the latter part of the year. EPF account holders should check their accounts to know the status of the interest credited to their accounts.
Generally, logging in to the EPF Passbook website is difficult. If you are facing issues logging in to your EPF account, you can use alternative methods to check the EPF balance.

Also Read: EPF Passbook website not working? Check EPF balance via missed call and SMS

Do you lose any interest if there is a delay in the crediting of interest?

In previous instances, the Employees Provident Fund Organisation (EPFO) has clarified that there would be no interest loss for the EPF members.

EPFO amended the rules in November 2024 to minimise the loss of interest to EPF members in case of EPF claim settlement. As per the new rules, an EPF member will get the interest on the EPF balances till the date of settlement instead of till the preceding month earlier.

This story originally appeared on: India Times - Author:Faqs of Insurances

With recent FD interest rate reductions from major banks like SBI, ICICI, HDFC, and Canara Bank, comparing the latest offerings is crucial

Faqs of Insurances — Tue, 27 May 2025 22:30:00 +0000

Fixed deposits (FDs) remain a go-to investment option for risk-averse individuals seeking stable, fixed returns. With banks like State Bank of India (SBI), ICICI Bank, HDFC Bank, and Canara Bank recently reducing their FD interest rates in the last 10 days (as of May 27, 2025), it’s important to compare the latest offerings to make an informed investment decision

SBI FD interest rates
SBI offers FD interest rates between 3.30% and 7.05% per annum (with Special FD) for general citizens and for senior citizens, the bank now offers interest rates between 3.5% to 7.35% and for super senior citizens, SBI offers 7.45%. The highest interest rate of 7.05%, 7.35% (senior citizens) is offered on tenure of 444 days

ICICI Bank FD interest rates
ICICI Bank offers FD interest rate between 3% and 6.85% for general citizens, and for senior citizens, the bank now offers interest rates between 3.5% to 7.35%. The highest FD interest of 6.85% and 7.35% (senior citizens) is offered on tenures of 18 months to 2 years.

Also read: ICICI Bank cuts FD interest rate by up to 20 bps: Senior citizens can earn 7.35% on these tenures

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HDFC Bank FD interest rates
HDFC bank offers FD interest rates between 3% and 6.85% for general citizens and 3.5% to 7.35% for senior citizens. The highest FD interest of 6.85% and 7.35%(senior citizens) is offered on tenure of 15 months to less than 21 months.

HDFC Bank cuts FD interest rate by up to 20 bps: Senior citizens can earn 7.35% on these tenures

Canara Bank FD interest rates
Canara Bank’s FD interest rates on callable fixed deposits now range between 4% and 7% for general customers, and between 4% and 7.50% for senior citizens. The highest FD interest of 7% and 7.50% (senior citizens) is offered on tenure of 444 days.

Bank	General Citizen FD Rates	Senior Citizen FD Rates	Highest Interest Rate (General)	Highest Interest Rate (Senior)	Applicable Tenure
SBI	3.30% – 7.05%	3.50% – 7.35%	7.05%	7.35% (7.45% for super senior)	444 days
ICICI Bank	3.00% – 6.85%	3.50% – 7.35%	6.85%	7.35%	18 months to 2 years
HDFC Bank	3.00% – 6.85%	3.50% – 7.35%	6.85%	7.35%	15 months to <21 months
Canara Bank	4.00% – 7.00%	4.00% – 7.50%	7.00%	7.50%	444 days

Here’s a look at the potential interest earnings on a Rs 5 lakh fixed deposit across SBI, ICICI Bank, Canara Bank, and HDFC Bank, based on their highest available interest rates and corresponding tenures. Keep in mind that the maturity amount will vary depending on factors such as investment amount, tenure, applicable interest rate, customer age category, and whether the interest is paid out monthly, quarterly, or compounded. These figures are for illustrative purposes only and actual returns may differ.

How to use it Economic Times calculator
You will have to enter the date of opening of the FD on ET calculator and then enter the amount of deposit which has to be between Rs 500 and Rs 10 lakh. Thereafter, choose the frequency of the interest pay-out. For monthly and quarterly pay-outs, reinvestment, the duration has to be entered in days, months or years. The short term duration can be between 1-31 days.

Lastly, enter the annual rate of interest at which the fixed deposit investment has been made.

SBI interest calculation
If you invest Rs 5,00,000 in an SBI fixed deposit for a tenure of 444 days (equivalent to 1 year, 2 months, and 18 days), you will earn an interest of Rs 44,369 at an interest rate of 7.05% per annum. The total maturity amount you will receive on August 12, 2026, will be Rs 5,44,369. This return is applicable for general citizens under SBI’s special FD scheme.

HDFC and ICICI Bank interest calculation
If you invest Rs 5,00,000 in a fixed deposit with HDFC Bank or ICICI Bank for a tenure of 1 year and 6 months (ending on November 27, 2026), at an interest rate of 6.85% per annum, you will earn Rs51,122 in interest. At maturity, the total amount you will receive will be Rs 5,51,122. This calculation is based on the highest interest rate currently offered by both banks for the given tenure.

Canara Bank interest calculation
If you invest Rs 5,00,000 in a fixed deposit with Canara Bank for a tenure of 444 days (equivalent to 1 year, 2 months, and 18 days), at an interest rate of 7% per annum, you will earn Rs 44,043 in interest. The maturity amount at the end of the term, on August 14, 2026, will be Rs 5,44,043. This reflects the highest FD interest rate currently offered by Canara Bank for this specific tenure.

This story originally appeared on: India Times - Author:Faqs of Insurances