Opportunity

 Small Finance Banks 

    Most of the Provident Fund goes into this type of investment. From the late 90s, the deposits in the fixed accounts have witnessed an exponential surge. People think they will always be safe with the bank but in recent times, it's obvious that banks can get to zero functionality ending with a merger. Irksome resulted in strict rules and never licensed further even the net worth props up for a transition. 

    Beating inflation is possible now with FDs. Not Private banks, Not Public sector banks, Not Foreign banks but Small Finance Banks (SFB) do. Small finance banks are nascent which has less deposit compared to bigger banks. To attract depositors, banks maintain higher rates and we from our side should scoop it up.

    The bank I would suggest is:

• Jana SFB offers 7% for 1-2 year tenure.
• The same offers 7.5% for a 2-3 year lock-in period.
• Suryoday SFB 7.5% for more than 3 years of resting.
• For less than a year both Jana and Suryoday offer the same.

Equitas is a recent IPO-ed bank with excellent financial strength, but the interests are slightly lesser.

    The returns from other types of banks are averaged to 5% which is lesser than the prevailing inflation. Here some rates are the same as home loan rates of other banks, which are reduced to pace up lending and restart the economy. 

 

 

FinBolts...