COMPARISION OF FIXED DEPOSIT PRODUCTS

PRESENTED BYSACHIN SHARMA INDRA BHUSHAN MISHRA AKANKSHA TRIVADI ANKIT TIWARI NEHA SAXENA

FIXED DEPOSIT
The account which is opened for a particular fixed period (time) by depositing particular amount (money) is known as Fixed (Term) Deposit Account. The term 'fixed deposit' means that the deposit is fixed and repayable only after a specific period is over.

Fixed Deposit Example: For example, a Fixed Deposit will often be used by individuals, businesses and financial institutions around the world as a means of storing their liquid funds for a fixed period of time for future use. In the retail market, Fixed Deposits are relatively safe investments when provided by insured financial institutions such as banks, savings and loan corporations and credit unions that are duly regulated within the country in which they operate. Also, while the term Fixed Deposit is in common usage in India and some other countries, Fixed Deposits are also known as term deposits in countries like Australia, Canada and New Zealand, as time deposits in the United States and as bonds in Great Britain.

Features of Fixed Deposit Account

The main features of fixed deposit account are as follows:-

The main purpose of fixed deposit account is to enable the individuals to earn a higher rate of interest on their surplus funds (extra money). The amount can be deposited only once. For further such deposits, separate accounts need to be opened. The period of fixed deposits range between 7 days to 10 years. A high interest rate is paid on fixed deposits. The rate of interest may vary as per amount, period and from bank to bank. Withdrawals are not allowed. However, in case of emergency, banks allow to close the fixed account prior to maturity date. In such cases, the bank deducts 1% (deduction percentage many vary) from the interest payable as on that date. The depositor is given a fixed deposit receipt, which depositor has to produce at the time of maturity. The deposit can be renewed for a further period.

Advantages of Fixed Deposit Account Fixed deposit encourages savings habit for a longer period of time. Fixed deposit account enables the depositor to earn a high interest rate. The depositor can get loan facility from the bank. On maturity the amount can be used to make purchases of assets. The bank can get the funds for a longer period of time. The bank can lend such funds for short term loans to businessmen. Fixed deposits indirectly boost economic development of the country. The bank can also invest such funds in profitable areas.

Benefits of Fixed Deposits

Increase your interest earnings You decide how much you want to invest Know that your money is safe with us Enjoy more flexibility at maturity Regular Income Choice of two investment plans

MAIN POINTS-: The minimum amount required for opening a FD account is Rs.10,000 Interest is taxable and Tax is deducted at source, from the interest on Fixed Deposits, as applicable, as per the Income Tax Act, 1961. You can withdraw money from your Fixed Deposit Account in multiples of Rs 1,000 FD can be closed before the original term of the FD Auto renewal facilities available Nomination facilites available on FD Loan can be granted upto 85% to 90%.

ICICI Bank is India's second-largest bank .In 2002 ICICI was merged with ICICI Bank.

REGISTERED OFFICE: Vadodara CORPORATE OFFICE: Mumbai BRANCHES-2532 ATMs- 6301

Founded as 'Canara Bank Hindu Permanent Fund' in 1906, by late Sri. Ammembal Subba Rao Pai, a philanthropist, this small seed blossomed into a limited company as 'Canara Bank Ltd.' in 1910 and became Canara Bank in 1969 after nationalization.

HEAD OFFICE: Bangalore

BRANCHES-3253

ATMs-2216

Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established.

CENTRAL OFFICE- Mumbai REGISTERED OFFICE- Ahmedabad

BRANCHES 1281
ATMs - 6270

Kotak Mahindra Finance Limited in 1985, it has been a steady and confident journey leading to growth and success. REGISTERED OFFICE- MUMBAI

BRANCHES-370
ATMs-1400

Dhanlaxmi Bank Ltd. was incorporated in 1927 at Trissur, Kerala by a group of ambitious and enterprising entrepreneurs.
HEAD OFFICE- KERALA BRANCHES-275 ATM-460

CALCULATION OF INTEREST ON F.D.1- Simple Interest 2- Compound Interest

1- Simple Interest- It is determined by multiplying the principal amount deposited by the depositor with the interest is applicable(per period) and the time periods for which the amount is deposited.

2- Compound Interest- It is different from the simple interest . In a principal amount earn a interest and interest also earn a interest.

ExampleSuppose you deposit Rs. 1000 in a bank for a period of two years at 9% per annum.

COMPARISION OF FIXED DEPOSIT INTEREST RATES

For Domestic Deposits Below Rs.15 Lacs

Rate of Interest (% p.a.)w.e.f. May 2011 General Maturity Period ICICI BANK AXIS BANK CANARA BANK 4.00 4.50 4.50 5.50 5.50 7.00 7.00 8.00 8.00 MAHINDRA DHANLAX-MI KOTAK BANK BANK No Quote 4.75 5.25 6.00 6.00 7.00 7.00 8.00 8.00 3.50 5.00 5.00 6.25 6.25 7.00 7.00 8.50 8.50

7 to 14 days 15 to 29 days 30 to 45 days 46 to 60 days 61 to 90 days 91 to 120 days 121 to 184 days 185 to 189 days 190 days

3.75 4.00 5.00 5.75 6.25 7.00 7.00 7.50 7.75

No Quote 2.50 3.00 3.50 4.00 6.25 6.75 7.75 7.75

191 to 210 days

211-269 days

7.50
7.50

7.75
7.75

8.00
8.00

8.00
8.00

8.50
8.50

For Domestic Deposits Below Rs.15 Lacs

Rate of Interest (% p.a.)w.e.f. May 2011 General
Maturity Period ICICI BANK AXIS BANK CANARA BANK MAHINDRA DHANLAX-MI KOTAK BANK BANK

270 to 289 days

290 days

7.50
7.75

8.50
8.50 8.50 9.25 9.25

8.00
8.00 8.00 9.10 9.10

8.50
8.50 8.50 9.00 9.40

8.50
8.50 8.50 9.00 9.00

291 to lees than 1 7.50 year 1 year to 389 days 8.25 390 days 8.50

391 to 589 days

590 days 591 to less than 2 year 790 days

8.25
9.25 8.25

9.00
9.00 9.00 8.50 8.50

9.25
9.10 9.10 9.00 9.00

9.00
9.00 9.00 9.40 9.40

9.50
9.00 9.00 8.75 8.75

2 year to 789 days 8.50 9.25

For Domestic Deposits Below Rs.15 Lacs

Rate of Interest (% p.a.)w.e.f. May 2011 General
Maturity Period ICICI BANK AXIS BANK CANARA BANK 9.00 9.00 9.00 8.75 9.00 MAHINDRA DHANLAX-MI KOTAK BANK BANK 9.40 9.40 9.40 9.25 9.25 8.75 8.75 8.75 8.75 8.25

791 to 989 days 990 days 991 to less than 3 year

8.50 8.75 8.75

8.50 8.50 8.50 8.50 8.50

3 year to less than 8.75 8 year 8 year up to 10 year 8.75

* Senior Citizens are eligible for an additional interest rate of 0.50%

For Domestic Deposits of Rs.15 Lacs to less than Rs. 1 Crore

Rate of Interest (% p.a.)w.e.f. May 2011 General
Maturity Period ICICI BANK AXIS BANK CANARA BANK 4.00 4.50 4.50 MAHINDRA DHANLAX-MI KOTAK BANK BANK 4.00 5.00 5.50 3.50 5.00 5.00

7 to 14 days 15 to 29 days 30 to 45 days

3.75 4.00 5.00

2.00 2.50 3.00

46 to 60 days
61 to 90 days 91 to 120 days 121 to 184 days 185 to 189 days

5.75
6.25 7.00 7.00 7.50

3.50
4.00 6.25 6.75 7.75

5.50
5.50 7.00 7.00 8.00

6.25
6.25 7.50 7.50 8.25

6.25
6.25 7.00 7.00 8.50

190 days
191 to 210 days 211 to 269 days

7.75
7.50 7.50

7.75
7.75 7.75

8.00
8.00 8.00

8.25
8.25 8.25

8.50
8.50 8.50

For Domestic Deposits of Rs.15 Lacs to less than Rs. 1 Crore

Rate of Interest (% p.a.)w.e.f. May 2011 General Maturity Period ICICI BANK AXIS BANK CANARA BANK 8.00 8.00 8.00 9.10 9.10 9.25 9.10 MAHINDRA DHANLAX-MI KOTAK BANK BANK 8.75 8.75 8.75 9.25 9.60 9.25 9.25 8.50 8.50 8.50 9.00 9.00 9.60 9.00

270 to 289 days 290 days

7.50 7.75

8.50 8.50 8.50 9.25 9.25 9.00 9.00

291 to lees than 1 7.50 year 1 year to 389 days 8.25 390 days 391 to 589 days 590 days 8.50 8.25 9.25

591 to less than 2 year 790 days

8.25

9.00
8.50

9.10
9.00

9.25
9.50

9.00
8.75

2 year to 789 days 8.50

9.25

8.50

9.00

9.50

8.75

For Domestic Deposits of Rs.15 Lacs to less than Rs. 1 Crore

Rate of Interest (% p.a.)w.e.f. May 2011 General
Maturity Period ICICI BANK AXIS BANK CANARA BANK 9.00 9.00 9.00 8.75 9.00 MAHINDRA DHANLAX-MI KOTAK BANK BANK 9.50 9.50 9.50 9.25 9.25 8.75 8.75 8.75 8.75 On day to day basis

791 to 989 days 990 days 991 to less than 3 year

8.50 9.25 8.50

8.50 8.50 8.50 8.50 8.50

3 year to less than 8.75 8 year 8 year up to 10 year 8.75

* Senior Citizens are eligible for an additional interest rate of 0.50%

Premature Policy CANARA BANK - The bank imposes a penalty of 1.00% for premature closure/part withdrawal of term deposit.

DHANLAXMI BANK- Penalty charged for term deposit premature closed is 1.00%. MAHINDRA KOTAK- No Penalty

AXIS BANK

- The bank charges a premature withdrawal penalty of 1.00%.

- Less than 1 year- 0.50% 1 year & above but less than 5 years- 1.00% 5 years and above- 1.50%

ICICI BANK

Conclusion Fixed Deposit encourage saving habit.

Mahindra Kotak is giving the highest interest rate on Fixed Deposit. Mahindra Kotak giving no penalty charges on premature policy. It is beneficial for Economic Development.

THANK YOU