With interest rates on debt options falling steeply in the past year, retirees, pensioners and those seeking to supplement their income with fixed deposit schemes have seen a sharp dip in their cash flows. In this context, it is good to see India’s largest bank – State Bank of India (SBI) – coming up with a special deposit scheme for senior citizens while revising its fixed deposit rates recently.
With returns failing to match risks and RBI relief measures complicating life for lenders, the next six months promise to be a minefield for debt investors. Here’s how you can navigate this
Given rate adjustments by other banks and NBFCs recently, a significant rate cut may soon be in the offing in this deposit as well. Investors and seniors looking for deposit options should lock into this FD before rates are revised.
These are extraordinary times for fixed income investors. Interest rates, after recent rate cuts by the MPC, are ruling at lows not seen in the last two decades. The repo rate of 4.4% today is even below levels seen during the global financial crisis. Keeping all this in mind, we have made significant changes to our curated list of deposits. Here are the three key sets of changes to the list and why we made them.
Desperate times call for desperate measures. Therefore, Indian fixed income investors may need to brace for a further plunge in interest rates in the coming months. • With rates cuts likely, lock into the options mentioned here, before March 31, 2020.
RBI’s rescue package for Yes Bank, which will see SBI infusing capital into the bank to pick up 49 % of its equity, offers a breather to its depositors and shareholders. But one class of stakeholders who are set to take a comprehensive haircut valued at Rs 10,800 crore despite the bailout, are the holders of Additional Tier 1 (AT1) bonds in the bank.
Debt investors looking for a safe parking ground for their long-term money are facing a drought of good options today. Under the circumstances, there is one less-known option that offers the combination of higher-than-market interest rates with complete safety of principal.
The interest rates offered are attractive relative to yields prevailing in the market Risks stem from company’s elevated NPAs because of CV market downturn, which can be prolonged Company’s four decade record across cycles lends comfort Go for the three-year payout option, but only if you have high risk appetite. Shriram Transport Finance, a deposit-taking
The Bharat Bond ETF will open on December 12 and close on the 20th. Most of you would have read about the ETF in the news. PrimeInvestor had briefly covered it last week, where we discussed the emergence of a new class of debt ETF. With all the details about the Bharat Bond ETF now out, let us move to specifics about the Bharat Bond ETF from Edelweiss AMC.
As the Monetary Policy Committee (MPC) decided to defy all expectations to hold its repo rates at 5.15 per cent yesterday, a sigh of relief must have gone around retirees and fixed deposit investors. But as the MPC has kept the door open for further cuts by signalling an ‘accommodative stance’, they must be wondering – “Is this rock-bottom for interest rates? How much lower can they go?”