Scribd
Upload
146 views

A Presentation On Bank Fixed Deposit

This document provides a 3-sentence summary of a presentation on bank fixed deposits: The presentation discusses what fixed deposits are, the requirements to open a fixed deposit account, things to consider when investing in fixed deposits, and the advantages and disadvantages of fixed deposits compared to other investment options. Various fixed deposit products from banks like SBI and ICICI are reviewed, including details on interest rates, tax deductions, and withdrawal policies. Overall the presentation provides an overview of fixed deposits for potential investors.

Uploaded by

Gaurav Majethiya
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
146 views

A Presentation On Bank Fixed Deposit

This document provides a 3-sentence summary of a presentation on bank fixed deposits: The presentation discusses what fixed deposits are, the requirements to open a fixed deposit account, things to consider when investing in fixed deposits, and the advantages and disadvantages of fixed deposits compared to other investment options. Various fixed deposit products from banks like SBI and ICICI are reviewed, including details on interest rates, tax deductions, and withdrawal policies. Overall the presentation provides an overview of fixed deposits for potential investors.

Uploaded by

Gaurav Majethiya
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 29

A

Presentation
on
bank fixed deposit

Presented To:- Prof. Urvi Amin Presented By:-


Krupali Parmar (A-)
Dhiraj Makwana (A-26)
Poorvi Maniyar (A-)
Gaurav Majethiya (A-)
Ravi Joshi (A-21)
What is Fixed Deposit ???
• It is an type of Investment Instrument.
• With a wide range of maturity periods from 7
days to 10 years. 
• The term "fixed" in Fixed Deposits (FD)
denotes the period of maturity and Interest
rates in most of the cases.
Requirement???
While taking a fixed deposit bank have to comply with the
regulations related to the Know Your Client (KYC).

Require the Permanent Account Number (PAN) along with some


other proof of address.

– For proof of address


• Passport
• Driving license
• Telephone bill
• Electricity bill
• Bank account statement of a Public sector/private sector/foreign bank
• Ration card
Requirement???(cont..)
Also require the proof of identity.

-For proof of identity


• Passport
• PAN card
• Voter ID card
• Driving license
• Photo identity issued by specified government organizations

If the deposit is being made by a client of the bank with an


existing account then all these documents need not be
submitted again
Things To Remember
 Check the financial position of the bank.

 Check the rates of interest for different banks


for different periods.

 Keep the amount in five or ten small deposits.

 Look at the inflation rate before investing in


F.D
Video
TYPES OF FIXED DEPOSIT
Types of
F.D

SPECIAL
TERM
DEPOSITS:

ORDINARY
TERM
DEPOSITS
Advantage Of Fixed Deposit
• Highly secure.
• Fixed Definite return.
• Liquidity.
• Tax Deduction (selected schemes).
• Convenience.
• Loan at reduced rate.
Disadvantage Of Fixed Deposit
• Penalty on Premature withdrawal.
• Low Return.
• Tax rebate in some scheme only.
• Return does not match with Inflation rate.
TDS & BANK FIXED DEPOSITS
• In Income Tax law, one of sources of the
income is "Interest Income" and thus
directions issued by income tax authorities
have to be followed by all bankers. 
• Banks deduct tax (TDS), if the total interest
earned on all your fixed deposits in the bank is
greater than Rs.10,000/-  during a financial
year.
– as per these guidelines even if a fixed deposit is in
the name of a minor  TDS is deducted.
• TDS is also deducted on interest accrued (but
not yet paid) at the end of the financial year
viz. 31st March every year.
The  present applicable rates are…
Resident
Individuals &
HUF
Tax Rate Surcharge Education Cess TOTAL

Payment upto 10
10% ---- 3% 10.30%
lacs

Payment equal to
10% 10% 3% 11.33%
& above 10 lacs
• one should inform his / her  bank not to
deduct TDS on deposit, by submitting a form
as per the provisions of the Income Tax Act.

Category of Account Form Required

Individual 15H

Trusts 15AA
Form 15G and 15H

• The form 15G and 15H are submitted to


banks by depositors who do not want that
TDS be deducted from their interest earned
on fixed deposits. 
– A person who is below 65 years can file the Form
15 G .
– only a person of 65 years or more is eligible to file
Form 15 H .
SBI & ICICI Tax Saving Scheme 2006
• Long Term Deposit to earn higher rate of
interest and tax benefit.
• Tenure:- 5 to 10 Yrs
• Loan facility and Premature Withdrawal is not
available.
• Maximum amount permitted is 1,00,000 per
Year.
– In ICICI Tax Saving Scheme minimum amount is Rs.
10,000 while in SBI Rs. 1,000
(contd..)

• As per the term deposit scheme 2006 issued


by the Central Government of India the above
Fixed Deposit scheme will not have the
following facilities,
– Premature Withdrawal
– Loan against FD
– Auto renewal facility.
SBI 1000 and SBI 555
• No invest limit.
• TDS applicable.
• Premature withdrawal and loan facility
available.
Floating Rate Term Deposit (FRTD)
• Floating Interest Rates is provided.
• Interest Rates are as follow.
Tenure Interest Rates

1 year
50 bps below Base rate
3 years
25 bps below Base rate
5 years
at Base rate
TIPS FOR LOANS AGAINST BANK FIXED DEPOSITS

• Emergency and for temporary Needs.

• Amount of Loan.

• Loan Rate.

• Cancelation of FD.
Rates of Fixed Deposit of Different Banks
BANK DEPOSITS VS. OTHER INVESTMENTS
BANK DEPOSITS OTHER INVESTMENTS

 Investments in equities, company


 Bank deposits are one of the safest deposits, debentures, mutual funds  etc.
investments and risk of default is is more risky.  However, investments in
minimal RBI Bonds, Government Securities are
even more safe.

 The returns from equities, mutual funds


is not assured.  The company deposits
and debentures may stop servicing of
 Banks deposits give an almost assured,
interest any time due to losses. 
fixed  and uninterrupted returns
However, investments in RBI bonds, PPF,
Government  securities give assured
returns.

 It is easy to choose a deposit scheme at  The investments in equities and mutual


a Bank as they are simple and can be funds is much more complicated and
understood by a layman complex for a layman.  
Contd..

 There are no rebates available under


Income Tax for deposits in Banks,  Deposits in schemes like NSC, PPF,
except under special schemes now Infrastructure allows rebates in Income
floated by Banks for availing the Tax.
income tax rebates.

 Company Deposits, debentures, equities


 Bank deposits give lower rate of returns can give higher returns, but have higher
degree of risk.
Now, Suppose you have Fixed Deposit of Rs 2 L
with BOI and It suddenly declares Insolvent what
is the amount you will get back from the
bank??????
Insurance Cover of Fixed Deposit
• Fixed Deposit of all approved banks are
insured by Deposit Insurance and Credit
Guarantee Corporation (DICGC).

• Maximum limit of the FD Insured is Rs 1 Lakh


(Interest and Principle Included).

• FD’s in different banks are separately insured.


What do you say, WHO should invest in
Fixed Deposit and Why ????
Security, liquidity, etc it is available in
other investments like gold also…
Risk Lovers - Stock Market
Risk Avertors - Gold

And what About Risk Neutral???


 They should jump from the
Mountain 
Thank You

You might also like