Most people consider their bank fixed deposits extremely safe but some recent events in Cyprus (an euro zone country) bust this myth of safety of bank deposits. The Cyprus government has decided to use the depositors’ money in bank account to pay off its debts. Deposits greater than €100,000 were frozen by the government but deposits of up to €100,000 remain protected. This is because deposits in banks up to €100,000 is insured while above €100,000 are uninsured. So the deposit that is insured would be untouched.
If such a thing can happen in Cyprus, the question is can it happen in India and how safe is your deposit with banks?
Given the above situation, you should be careful about choosing your bank.
So to be on the safer side, you should diversify your deposits in different banks and bank mainly with bigger well known banks.
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Is it safe to invest in fixed deposit of Bandhan Bank
I have around 12Lac Rupees, Out of which 9.5 Lac is already with bandhan bank with FD maturity time of somewhere in mid 2018.
1. Is it safe to keep so much money in one bank considering this bank is new?
2. Can i put the remaining 2.5 Lacs too in bandhan bank as it offers better interest rates right now for 2years period?
Bandhan bank is new but it has been given banking licence with lot of deliberations from RBI. Also its closely regulated. Its safe for deposit!
Hi Amit, I have around 85 lacs in FD with bandhan bank, hope it is safe to keep investing further there?
yes
Is it safe to invest Rs Fifteen lacs in Fixed Deposit offered by RBL? How to be sure that the decision does not go wrong?
for 0.5 or 1% higher interest do not risk your 99.5 or 99% money.. do not keep all money in RBL.. keep deposit in several banks.. so the loss is less..
V correct
Yes v true.. do not keep all eggs in 1 basket
Yes you can invest. The only thing you should do is monitor RBL closely through news and blogs.
I want to deposit that amount Rs.in IDFC Bank for 1 Year. is it secured .
yes
i have about 20 lacs worth of FDs in State Bank of Patiala.Is it a safe bet as they are part of the State bank group or do I need to keep my eyes n ears open.What worse can happen with such a bank
SBI is the biggest Indian bank and government cannot afford it to fail, as it would mean collapse of entire economy. So just relax :)
Hi Amit,
I am 35 year old. I have an amount of 50L which is currently lying in a FD in HDFC Bank, which is giving me 7.75% return. Since I am in 30% tax bracket already, my actual return on that FD comes out to be 5% or so.
Since my wife is a housewife, I am planning to create a Bank Account in BANDHAN bank in her name, and operate it myself. They are offering 8.25% interest on FD.
1. Could I request you to advice me if that is a wise option?
2. If not, could you please suggest a simple alternative, which doesn't require regular monitoring? I do not have a high financial literacy. Someone suggested me to invest in Birla Sun Life Debt Fund and just forget it.
Thanks,
Rahul
1. Yes you can invest in any bank FD which offer higher interest rate.
2. Debt Mutual funds are good alternative to FD as they are more tax efficient and have similar payout as bank FD. However you cannot invest and forget. Regular monitoring is required more in Debt funds.
Hi sir dady ka retirement amount hai 20 lack sir me kisme fd kru pls help kro
Dear Amit,
Appreciate of your analysis and responses to citizens pain area questions about their hard earned money.
I have taken VRL and want to invest 35L FD in Deutsche Bank for 5 Yr term as they are offering 8.25%. They claim they are governed by RBI and they operate as per SBI norms. Is it wise and safe to invest with them and should I split as well. Primarily I am look VRL amount to run my monthly.
Your advice would be highly appreciated.
Though Deutsche Bank is foreign bank but is regulated by RBI. I do not see any issue with the fixed deposit. Go ahead and do it
◾The public sector banks are the safest as they are backed by government of India. In case there is some problem with the bank, the government would bail it out in most cases. Remember Government can print currency!
Wonder why Cyprus Govt. did n't print currency?
Cyprus is part of European unit with Euro as its currency. SO printing currency is not an option for them.
I want to invest 15 lac on IDFC as presently they are giving highest interest rate ie 8.75 p.a. Is it wise decision ? how big this IDFC bank ? Also they are offering MIS which will be directly deposit to my account.
IDFC is the newest bank in India and so it has operations limited to few major cities only. Being new they have to differentiate themselves from existing banks. Offering higher interest rates in one way to do so. But IDFC is safe to bank with so go ahead with your investment.