Archive of articles related to fixed deposits and recurring deposits
An overdraft account is a type of credit facility offered by a bank in which one can overdraw funds, for example, write a cheque for Rs. one lakh when our account balance is zero. In this article, we discuss when it should be used.
Continue reading →When bank fixed deposits decreases, as usual, senior citizens ignore credit risk and chase after “high return corporate FDs”. The latest craze, Tamil Nadu Power Finance Fixed Deposit offering up to 9.11% return on a 36 to 60-month deposit for senior citizens. Here is what you need to know about these allegedly “Absolute Safety &…
Continue reading →Should we pay tax on fixed deposits each year or only on maturity? What does the law say? What are the options for the investor? Can we pay on maturity even if there is a tax deduction at source? Let us find out
Continue reading →Here is a FAQ on Small Finance Banks: Are they safe? Can I invest in their fixed deposits? How are they protected? What are the safeguards? What are these banks for? Let us find out. A FAQ on Small Finance Banks What are they? Small Finance Banks are Banks licensed by RBI under section 22 of…
Continue reading →What if my bank goes bust and does not repay my deposit? We all know that the money has insurance of only up to five lakh. How does this work? Who will step in when a bank fails and how do we get back the money? In this age of small finance banks, knowledge about…
Continue reading →There are times in life when you require money for a need in stages. The most common example is monthly income. Those who do not have much money to play with, cannot take risks and must rely on interest income which is always taxable as per slab. On the other hand, those who have some…
Continue reading →Annualized yield is a notion associated most often with fixed deposits. Many of us do not realize that it could be used with recurring deposits as well. It can be, and is used by many banks. FD yield though misleading, is at least correctly calculated. I am very uncomfortable with the way RD yield is…
Continue reading →The difference between annual yield and annual interest and how it can be used to misrepresent gains from fixed deposits is discussed. Let us face it, most investors are confused with the two percentages associated with a fixed deposit: annual interest and annual yield. Most people make the common mistake of assuming that the yield…
Continue reading →Here is a list of all the Excel-based free personal finance calculators available for download in the blog. This list will be available in a separate page in the navigation menu. If you see calculators you have not checked out before, do give them a try this weekend. If you find the calculators useful, please…
Continue reading →Here are updated versions of three fixed deposit calculators. FD calculator for investment tenure in months and years (tax to paid each FY and advance tax liability) minor bug fixed FD calculator for investment tenure in days (tax to paid each FY and advance tax liability) macro button added to stop and start calculations for…
Continue reading →There are many articles on the web that talk about the difference in the way debt mutual funds and fixed deposits are taxed. Almost all of them (including the ones by self-proclaimed beacons of financial literacy) talk about post-tax returns typically over 3-5 year periods. To my knowledge there is only one article, written by…
Continue reading →Here is the online version of recurring deposit calculator on Microsoft’s Exel Web app. Thanks to reader Srinivas, I was able to correct a minor bug. I tried to convert it to Google Docs, but some cells showed incorrect values. This is quite disturbing because if one does not check each cell carefully then the…
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