Group 7:

Maulik Panwar (027)

Ridhima Bora (041)
Eashwar M (138)
Mithil Easwaran (214)
COMMERCIAL BANK MANAGEMENT Charanjeet Brar (260)

FIXED DEPOSITS Himani Shah (270)

Vishal Choudhary (308)
TYPES OF FIXED DEPOSITS
Standard Fixed Deposit
• Offered by almost every bank in India
• Most popular option as Fixed Deposit
amongst the investors
• Fixed deposit tenure can be as less as 7
days to as long as 10 years
Special Fixed Deposit
• Special because it offers special time
period of deposit
• Time period can be anything like 290 or
390 days, etc.
• Higher interest rate is offered by Special
FDs

Tax Saving Fixed Deposit Floating Fixed Deposit

• Cannot be for a period less than 5 years • FD interest rate is not fixed, vary
quarterly or yearly
• Amount invested is tax exempted under
the section 80C • Interest rate change is determined by the
RBI Guidelines
• However, Interest earned on FD is
subject to Tax

FIXED DEPOSITS 2
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7P
PRODUCT
• Fixed period – One cannot take money out of an FD before the expiry date
• Interest – It is earned on the principal throughout the tenure on a cumulative basis
• Tenure – The interest rates offered are different for different tenure
• No cap – Any amount can be invested in an FD
• Tax saving fixed deposits- Tax exemption on the principal of up to Rs.1.5L in a year
• Other FDs – Cumulative FDs, non-cumulative FDs, and flexi FDs

Tenure Non-senior citizen and Senior

NRO citizen
7-45 days 4.5% 5%

46-179 days 5.5% 6%

6-12 months 5.8% 6.3%

1-5 years 6.1% 6.6%

5-10 years 6.1% 6.6%

FIXED DEPOSITS 3
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PRICE
• Opening an FD is not a very complicated task. Banks are
constantly trying to make the process simpler and the rates
attractive for diverse set of consumers.
• The minimum amount needed to open a fixed deposit account
varies from bank to bank. However, there is no limit on the
maximum amount which one can invest in an FD
Minimum Requirements
• Some banks allow consumers to open FD account without even
having a savings account in place, others require a savings
account.
• The interest rate offered on the fixed deposits (FD) will depend on
the period for which you are investing in the FD. Senior citizens
are typically offered higher interest rates.
Interest rates
• Most banks are adopting rates of interest that yield better ROI for
the depositors.
Example: Paytm Bank is attracting many new customers by offering
such services.
FIXED DEPOSITS 4
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PLACE
• All branches nation wide by banks or Non-Banking Financial
Companies (NBFCs)
• Online web portal of the banks and NBFCs

PROMOTION
• Advertising Campaigns through various channels- television,
social media, newspaper etc
• Personal selling by employees
• Promotional Offers relative to interest rate, amount and time of
deposit and different schemes that are introduced

FIXED DEPOSITS 5
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PEOPLE
• NRE and NRO FDs – NRIs can also open FD accounts in India
• Senior citizens – Higher rates of interest are offered to them
• Minors – They can open an account only if they have a
parent/guardian as co-signatories
• Organization/association – Partnership firms, HUF,
societies/clubs, and educational and charitable institutes

PHYSICAL EVIDENCE
• It includes the physical environment where the service of FD is
being provided
• The layout or design of any online mode (for example, banks’
website, any mobile app, etc.)
• How the service is being branded by the bank, what all features
and benefits are being highlighted of opening Fixed deposit
account with that particular bank.

FIXED DEPOSITS 6
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PROCESS
• Open www.onlinesbi.com and log in to SBI net banking by
providing personal details
• Go to the homepage, click on the ‘Deposit Schemes’ option and go
to ‘Term Deposits’. Then click on ‘e-fixed deposit’ on the top menu
• Proceed to choose the type of FD you want to open and click
‘Proceed’
• Choose the account from which money has to be debited if you
have multiple bank accounts.
• Also choose the FD principal value and fill the same in the
‘Amount’ column. Tick the ‘Senior Citizens’ tab if you are above
60.
• Choose a cumulative/STDR deposit or a non-cumulative/TDR
deposit and choose maturity date or internet payout frequency
accordingly
• Choose maturity instructions, and accept terms and conditions
after reading. Click the ‘Submit’ button to successfully open an FD
• Go to the branch and ask for FD Account opening form
FIXED DEPOSITS 7
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4C
COST
• One of the most liquid instruments of money
• Increase in savings
• Can claim tax benefits up to 2.5lakhs on total interest return on deposits
• Guaranteed and safe returns making it a desirable choice

CONVENIENCE
• Option to customers to choose between non-cumulative or cumulative
interest option.
• Non-cumulative schemes- Regular income (annually, quarterly basis).
• Cumulative schemes- Principal and accumulated interest paid on maturity
and hence result in savings and returns earned over a long period.
• Nomination option in FD is available.
• Frequency of returns as per depositor’s choice. Example: Monthly returns can
be chosen by the customer
FIXED DEPOSITS 8
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COMMUNICATION
• Online and offline mode of communication
• Offline mode- All information regarding the FDs, minimum tenure
requirement and the interest rates are communicated at the branch
• Online mode- Bank’s website provides all the necessary information.
Opening of FD account simplified in this mode

CUSTOMER
• One of the safest investments, growth and maturity to savings without being
affected by market fluctuations is provided
• Additional income earned for a fixed period of time
• For senior citizens- corporate FDs are better investment options as
guaranteed safe returns in retired years
• Urgent cash needs can be fulfilled by taking loans against FDs
FIXED DEPOSITS 9
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How Do We Add Value?

• Partial or a certain percentage of amount can be allowed to

withdraw without attracting any penalty to the customer
• Loans against the Fixed deposit for various purpose – vehicle
loan, student education loan, etc.
• Quick renewal of FD on maturity through mobile apps/website
along with option to add the interest earned for renewal of the FD
• Possible fragmentation of the existing slabs of FD deposit interest
rates for greater incentives to customers for going for FD,
especially senior citizens. For Example: Up to 1 month FD – 5.5%
interest rate, 1-2 month 5.6%, 2-3 month 5.7% and so on

FIXED DEPOSITS 10
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Issues in Business Development

Issues in Business Development in case of Fixed Deposits can be

classified as follows:
PRODUCT:- Fixed Deposits have started acting as an unattractive
investment owing to the inflation risks, interest rate risks. Moreover
the Interest earned on company fixed deposits is taxable.
SELLING:- Acquiring new customers gets difficult in times of
recession leading to drastic reduction in interest rates. In a market
like India, where the demographic factors includes less risk averse
customers, options like mutual funds and stock market seem more
attractive.
CUSTOMER MANAGEMENT: Lack of mobile banking and
internet infrastructure in rural areas secludes a customers from
accessing online mode, thereby adding burden to offline mode
leading to increased lead time.

FIXED DEPOSITS 11
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THANK YOU