Is there an investment opportunity in PSP Projects shares?
Is this the right time to invest in the shares of PSP Projects, a company that does construction work for the government and corporate India? How much benefit will there be from investing in this stock? What targets are experts giving regarding this stock? Watch this video to know-
Fixed deposits (FDs) are considered a safe and predictable bet to grow one’s money be it is in short term, medium term or long term. Despite the declining rates of interest, a huge number of people still trust bank FDs with their money. But there are still some banks that offer relatively high interest rates than the big ones. Investment just below 36 months or three years still attracts somewhat better interest rate. Some banks offer 6% interest rate for tenure of less than three-year FD. Experts describe this tenure as medium-term that is suitable for smart planning and also meet the need for emergency money.
Money9 gives you the best nine FD rates of less than three years offered by commercial banks, except small finance banks.
Private banks lead
Some private lenders are offering better FD rates across all tenures and also for less-than-36 months. The better rates generally vary between 6% and 5.5%.
The best rate is offered by three leading private lenders IndusInd Bank, Yes Bank and RBL Bank. They offer 6% interest rate for less than 36 months tenure.
The next in the pecking order is IDFC First Bank that offers 5.75% interest rate, followed by DCB Bank, Bandhan Bank, Karnataka Bank and Karur Vysya Bank. They all offer flat 5.5% interest on two-three-year tenures.
The next best interest rates are offered by public sector Union Bank which is 5.4%. Major private sector lender Axis Bank too offers this rate.
Popular lenders
But if we go through the rates of the bigger public sector banks and private lenders, the interest rate is a bit low. The rate is between 5% and 5.15% for less-than-36-month tenure.
The largest lender SBI offers 5.1% for 36 months tenure while PNB and BoB both offer 5.1% for this tenure.
On the other hand, if you go through the leading private lenders then HDFC offers 5.15% for less-than-36-month tenure. ICICI and Kotak Mahindra Bank offer 5.15% and 5% for the same period.
Expert view
“While investing, one must remember that returns are always linked with the risk associated with the investment. With higher returns come higher risks and lower returns with low risk. Ideally the exposure in one bank should be restricted to Rs 5 lakh as this amount is insured under the deposit insurance program of DICGC,” said Arvind Agarwal, a tax expert based in Kolkata.