Short Term Investment with good Interest ?

[Charun]

Here are the Facts and Conditions -

1] I have around 20k in hand and thinking of investing for a period of maybe upto 1 year

2] Dont want to invest in shares because i have very less knowledge about shares as of now and i also dont have a Demat A/C

3] I have only 1 bank account - SBI Savings a/c

Requirements -

1] Should i deposit it in my bank account which gives me interest @ 4 percent p.a

2] Any other area which can give me good returns ?

NOTE - Though 20k is a very small amount to invest but its very large for me as i have been saving since some time

 

[honest1]

You can invest in Liquid scheme of any fund. Should give you return of around 8-9%. Also you can also withdraw the amount with 1 day delay. No need to have DP a/c. Let me know if you are interested. Will guide you more.

 

[Charun]

@honest1 - yes i am surely interested in knowing whatever possible

please let me know more, and also dint understand the thing of withdrawing the amount 1 day later ?

 

[Sanav3]

A normal FD would fetch 7% .. check interest rates on Sbi website

 

[honest1]

honest1 - yes i am surely interested in knowing whatever possible

please let me know more, and also dint understand the thing of withdrawing the amount 1 day later ?

OK, so you need to choose any liquid Fund. I would you can choose from HDFC Cash Management Fund/ICICI Prudential Liquid Fund or any other.
The complete list is here.
For 1st time you have to submit the application to the MF office. Then you can register on their website. On any day you feel that you need the money back, you can put the request for redemption(before 3 PM) and the money will be credited to your bank account on next day morning.
Here are the details of HDFC Liquid(cash management) Fund.
HDFC Mutual Fund > Products

Liquid Fund gives you more return as well as more flexibility on getting your amount back.

 

[tommy_vercetti]

The revised interest rates for Domestic Term Deposits ‘Below Rupees One Crore’ effective from the 24[SUP]th[/SUP] April 2012
would be as under:
[TABLE="class: MsoNormalTable"]
[TR]
[TD="width: 120"]

Tenors​

[/TD]
[TD="width: 162"]

Current rates w.e.f. 28.03.2012​

[/TD]
[TD="width: 126"]

Revised rates w.e.f. 24.04.2012​

[/TD]
[/TR]
[TR]
[TD="width: 120"]

7 days to 179 days​

[/TD]
[TD="width: 162"]

8.00​

[/TD]
[TD="width: 126"]

7.25​

[/TD]
[/TR]
[TR]
[TD="width: 120"]

180 days ​

[/TD]
[TD="width: 162"]

7.00​

[/TD]
[TD="width: 126"]

7.25​

[/TD]
[/TR]
[TR]
[TD="width: 120"]

181 days to less than 1 year​

[/TD]
[TD="width: 162"]

8.00​

[/TD]
[TD="width: 126"]

7.50​

[/TD]
[/TR]
[TR]
[TD="width: 120"]

1 year to less than 3 years​

[/TD]
[TD="width: 162"]

9.25​

[/TD]
[TD="width: 126"]

9.00​

[/TD]
[/TR]
[TR]
[TD="width: 120"]

3 years and up to 10 years​

[/TD]
[TD="width: 162"]

9.25​

[/TD]
[TD="width: 126"]

8.75​

[/TD]
[/TR]
[/TABLE]

---------- Post added at 09:18 PM ---------- Previous post was at 09:17 PM ----------

The effective interest rates for Single term deposits of Rs 15 lacs and above
but less than Rs 1 crore w.e.f. 24[SUP]th[/SUP] April 2012 will be as under:
[TABLE="class: MsoNormalTable"]
[TR]
[TD="width: 235"]Tenors
[/TD]
[TD="width: 149"]Interest Rate
[/TD]
[/TR]
[TR]
[TD="width: 235"]7 days to 180 days
[/TD]
[TD="width: 149"]8.00%
[/TD]
[/TR]
[TR]
[TD="width: 235"]181 days to less than 1 year
[/TD]
[TD="width: 149"]8.00%
[/TD]
[/TR]
[TR]
[TD="width: 235"]1 year to less than 3 years
[/TD]
[TD="width: 149"]9.00%
[/TD]
[/TR]
[TR]
[TD="width: 235"]3 years and up to 10 years
[/TD]
[TD="width: 149"]9.00%
[/TD]
[/TR]
[/TABLE]

---------- Post added at 09:19 PM ---------- Previous post was at 09:18 PM ----------

Premature Withdrawal:
(a) There shall be no penalty for premature withdrawal of deposits below Rs 15 lacs for tenors 7 days to 180 days provided these have remained with the Bank for at least 7 days.
(b) However, for single deposit of Rs 15 lacs and above, there shall be no penalty for premature withdrawal for tenors below 1 year provided these have remained with the bank for at least 7 days.
(c) In other cases of premature withdrawal, the interest shall be 0.50% below the rate applicable for the period the deposit has remained with the Bank or 0.50% below the contracted rate, whichever is lower. However, no interest will be paid if the deposit remains with the bank for less than 7 days period.
(d) These instructions for premature withdrawals will apply only to fresh deposits and renewed maturing deposits.
(e) There is no discretion for reduction/waiver of penalty for premature withdrawal of term deposits.
(f) No premature penalty will be levied from staff and SBI pensioners. Interest rate to be paid on premature withdrawal of term deposits by staff and SBI pensioners will be same as applicable for the period deposit has remained with the Bank.

 

[kippu]

put it in fixed deposit and forget about it

 

[Charun]

Ok guys so liquid scheme and FD are the options as of now

Maybe the best i can do is - Have a FD on my grandfather's name [senior citizen] which would help me to best the maximum interest

What say ?

 

[honest1]

Put in FD if you are sure that you are not going to premature it. Also the interest which you will receive interest will be after TDS and hence it will impact the return.

 

[tommy_vercetti]

Put in FD if you are sure that you are not going to premature it. Also the interest which you will receive interest will be after TDS and hence it will impact the return.

There is a Form that you fill up so you do not have to pay TDS, also putting it in your grandfather's name if he has a A/C is the best option as being a Senior Citizen he will have lot of benefits and also would not affect TDS.

 

[mpaspc]

there will be no TDS . TDS in only applicable when the interest is more than 10,000 . IIRC Yes bank pays at a good rate .Standard Chartered Bank India . Standard chartered currently pays 9.25% on any amount for a period of 6 months or greater .

Investing in stocks may yield higher returns but they certainly come with a much higher risk

 

[esanthosh]

TDS should not be an issue in his case. TDS only comes into force if the total interest from all the FDs in a financial year exceeds Rs. 10,000. For Rs. 20,000, even at 9% (or 9.5% if deposited in the name of his grandfather), he will earn only Rs. 1800 (or Rs. 1900).

 

[mpaspc]

Double post - MODS please delete

 

[hahahari]

FD's are the safest bet. I do it every month. Invested in one of those HDFC schemes and lost 10k out of 50k in a year. Cut my losses, withdrew the money and put it in FD.

 

[dinjo]

TDS should not be an issue in his case. TDS only comes into force if the total interest from all the FDs in a financial year exceeds Rs. 10,000. For Rs. 20,000, even at 9% (or 9.5% if deposited in the name of his grandfather), he will earn only Rs. 1800 (or Rs. 1900).

Interest of all terms bank deposit , fd fall under same category

 

[vivacious_tg]

FD is definitely good and reliable option, but you can also check some fixed maturity plans as well, it might fetch better than FD.

 

[Charun]

So FD is the thing to go for
tommy_vercetti - Do i require an existing account if i want a FD ? AFAIK we have to create a new FD a/c right ? , My grandfather doesnt have an account in any nearby bank

Thanks everyone, will update this thread with whatever desision i take

Btw will investing in silver be a good option ?

No point thinking about gold because i can get only 6-7 grams whereas i can get around 300 grams of silver for 20k - What say ?
@vivacious_tg - can you let me know more about fixed maturity plans ?

 

[esanthosh]

If you open a FD in your grandfather's name, you are going to get an additional 0.5% and Rs. 100 at the end of the year. If you are not that particular about the additional Rs. 100 AND you have Internet banking, you can open a e-TDR / e-STDR online. See here: https://www.onlinesbi.com/personal/osbi_etdr_estdr_faq.html

 

[?dOuBtFiRe?]

U can also look at FD's offered by some private companies. They offer a bit more interest.

 

[dinjo]

If u are really interested invest in copper