FD rates change every month or so ,.. please ask this question on our forum

manish

I am looking for the FD for 10 years with 11.5 % on cumulative . if any one knows pls rewrite to me thanks

You can look at Monthly income plans of mutual funds : http://www.jagoinvestor.com/2011/01/monthly-income-plans.html

i am businessman and in my early 50s. i want to decrease work load as i am getting old. i have about 30-50 lac. saving here and there/gold/cash with me which i want to invest for long term i dont mind investing it for 5-10 years so that i can get regular income which take some of work load off. i was considering FDs but as people in comments of this post are saying for longer term FDs are not so effective can you please advise me where i should invest for regular income plus where my actual money is safe too.
I dont have much knowledge of Mutual Funds/stock exchange as i always considered them having big market risk of losing all initial investment i maybe wrong.
I would really appreciate reply. Plus this site is very very helpful.

Considering that you dont have any other income source in India , all you need is 8% interest rate yearly from FD , that would give 3.2 lacs as income , you can pay max 20k as tax and be left with 3 lacs per year . So you can choose Axis bank or any other bank . Any tenure more than 3 yrs should be good

Manish

Manish

thanks for your inputs

Manish

Jagoinvestor has some very good articles on asset allocation.

Unlike in US and western countries where the money up to 1 lakh dollars is insured, your money saved in DICGC insured Indian Banks is insured only upto one lakh of rupees per bank per account . Keeping in mind the the risk involved, it may be worthwhile to open accounts in your name, your spouse’s name to increase the risk coverage. It will increase your paper work, but I think it is worth the extra work.

Please read the article below.

http://www.way2goals.com/FinEdu.html

There are other banks which are giving better interest rates than Axis bank. Look at best fixed deposits http://www.way2goals.com/Project2/chooseBank.html . For e.g. instead of Axis bank if you put in Laxmi Vilas Bank or Karnataka bank for 1 year Fd, you will make app. more than Rs. 20000.
Most people tend to ignore the impact of inflation on their projected expenses. Two expenses which have surpassed inflation are medical and educational expenses. Please look at the link below to see how you need to save for your children’s education.
https://www.fidelity.co.in/investing_insights/saving_for_college_calc.html

I think your post tax returns in FD after adjusting for Taxes and more importantly for inflation will be close to zero.

You may wish to read this article, which says in the past 5 years that average post tax returns on Fixed Deposits are 7.5% vs nearly 17% if one invests in SIP (Systematic investment plan).

http://www.livemint.com/2011/07/19204540/Meet-the-SIPers-join-them-now.html?atype=tp

You may wish to consider spreading your investments across different asset classes such as Fixed Income(FD , Bonds) , Gold, Equity Mutual Funds, Real Estate etc.

http://www.way2goals.com/AssetAllocation.html

This is my opinion, but, you should understand various financial products before making any investment/savings.

Happy saving/investing.. All the best!