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Bank FD Rates have peaked now. CRR down from 4.5% to 4%

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SSV

SSV

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RBI' MPC decided that CRR to be cut by 50 basis point from 4.5% to 4% ..
CRR= Cash Reserve Ratio .. ( the cash that need to be kept as a reserve which could not be available for lending )..

This redcution in CRR means the banks now have more funds ( liquidity) for lending from their deposits.. means Banks dont need to pay more interest to get more deposits..

Means: FD rates have peaked .. Book your FDs now for the maximum FD rate.. FD rates may go dwon in future..
An official Repo rate cut is on the cards for Feb meeting ...

All the best ..
 
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sunit123 said:
Shockingly FD Interest is included in the GST turnover calculation....so i have to take debt MF route......Weird rules in India
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In general, Indian babus who formulate rules and write circulars feel they are above mankind and feel they are very very special..
and with that in their minds they make rules which may contradict to their own theme.. very much ambiguity in nature..
having said that this kind of ambiguity had reduced in the recent past and getting better when compared to the last 2 decades ..

My comments are general in nature.. nothing specific
 
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Time to open Yes Yes We Bank 🏦
Happy Season 3 GIF by The Simpsons
 
SSV said:
RBI' MPC decided that CRR to be cut by 50 basis point from 4.5% to 4% ..
CRR= Cash Reserve Ratio .. ( the cash that need to be kept as a reserve which could not be available for lending )..

This redcution in CRR means the banks now have more funds ( liquidity) for lending from their deposits.. means Banks dont need to pay more interest to get more deposits..

Means: FD rates have peaked .. Book your FDs now for the maximum FD rate.. FD rates may go dwon in future..
An official Repo rate cut is on the cards for Feb meeting ...

All the best ..
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Although there is a cut in CRR, I do not expect an interest rate drop until the Repo Rate comes down. 2 months is a long time. Everyone expected rate cuts in Oct and now in Dec, but the state of the economy has tied up RBI hands as well. Have to wait and watch how the situation unfolds, plus Donald Trump will be heading USA from Jan 2025 (expect some turbulances to occur). Interesting times ahead, for the time being, expect the FD interest rates to remain the same till 31 March 2025. Let's see 🙂
 
General query,
If our account is a sweep in/out account, its good right, or one should go and make FDs in small finance banks or keep money in small finance banks?
 
kuchbhi said:
General query,
If our account is a sweep in/out account, its good right, or one should go and make FDs in small finance banks or keep money in small finance banks?
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Sweeps are the worst possible a/c, just do FDs with SFBs. You can book fd in smaller chunk and cascading interval if you are unsure about utilisation.
 
kuchbhi said:
General query,
If our account is a sweep in/out account, its good right, or one should go and make FDs in small finance banks or keep money in small finance banks?
Click to expand...
When you do auto sweep whatever rate that is applicable at that time for that period is applicable when the auto sweep gets activated on a regular basis..

I am expecting FD rates will fall in the next 3 to 6 months , in other words the FD rates have peaked for the time being..
If you want to lock in with the higher FD rates for the next 2 to 3 years NOW is the right time to do so...( more likely scenario, I am 90% confident)..
 
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SSV said:
When you do auto sweep whatever rate that is applicable at that time for that period is applicable when the auto sweep gets activated on a regular basis..

I am expecting FD rates will fall in the next 3 to 6 months , in other words the FD rates have peaked for the time being..
If you want to lock in with the higher FD rates for the next 2 to 3 years NOW is the right time to do so...( more likely scenario, I am 90% confident)..
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a few questions
1. do you have any fd if yes then in which SFB
2. where do you park your regular fund which generally remain in savings/salary account, in fds self made or SFB saving account for there slabwise interest(of upto 7.5 %) !
3. will there be any risk/loss i will be taking if i book and fd or 3-4 L for 3 to 4 years and close it in 1 year or so?

(dunno if its correct thread for asking these question)
 
newinnov said:
Sweeps are the worst possible a/c, just do FDs with SFBs. You can book fd in smaller chunk and cascading interval if you are unsure about utilisation.
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that is a good idea
would you like to share what you have personally followed i wanna learn if youre okay with it
 
kuchbhi said:
a few questions
1. do you have any fd if yes then in which SFB
2. where do you park your regular fund which generally remain in savings/salary account, in fds self made or SFB saving account for there slabwise interest(of upto 7.5 %) !
3. will there be any risk/loss i will be taking if i book and fd or 3-4 L for 3 to 4 years and close it in 1 year or so?

(dunno if its correct thread for asking these question)
Click to expand...

1. Yes, I do have FDs but not in any SFB's.. having said that upto 5L is insured in any scheduled banks.. no need to worry..
2. FDs are self made, not auto sweep. For general SB accounts for higher balances the banks like IndusInd and IDFC are giving better rates for th balnces above 10L or so.
3. Yes, most banks will levey a penalty of 1% if you do pre mature withdrawal of an FD
 
kuchbhi said:
that is a good idea
would you like to share what you have personally followed i wanna learn if youre okay with it
Click to expand...
There is nothing much to learn buddy.
Lets say- ABC bank has rates as - 8% for 1 year , 8.5% for 2year to 3 years and 7.75% for 3 to 5 yr fd.
And you have 5L to invest into secure funds out of which you know that 2l will be required next year.
Lets assume that repo rate cut will likely to happen...

So you will do fd of 2L for 1 year, 1.5L for 2.5 yr and 1.5 for 4 yr

You can book fd of SFB using tata neu or abcd app, without opening a/c in that bank but dont go beyond 4L in 1 a/c
 
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I don't see any rate cut coming till Feb 2025. More than rate cut to increase credit growth, deposit growth already happened. So FD rates won't increase but will be stable.
 
Every year banks are writing off 2 lakh crore npa so banks cant afford to reduce interest.

Your fd money is being used to write off npa so banks need more money for more write off.

If fd money stop banking system will collapse
 
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