Madam, I agree with you that it will be wise to book long term FDs in high interest rate regime. There are some products even in natinalised banks to take advantage of the high interest rate regime. PNB offers a product called Flexi RD, wherein one can initially, say, open the account for say a min. deposit of Rs.100/- to be deposited every month for say 120 months (this is only an illustration). Monthly instalments can be upto 10 times the min. deposit, thus one can deposit Rs.100/- in a particular month or in multiples thereof upto 10 times i.e. Rs.1000/-. Even if the deposit rates go down, the rate of interest applicable will be as on the date of opening the deposit. A more similar product is available in IOB, wherein in the first year one deposits say Rs.100/- per month for 12 month, in the second year Rs.200/- per month and so on thereby increasing the instalments by Rs.100/- every year, UPTO 10 years. ...

venusind2k, nice message.....

Panasonic, I would like to mention - (1) Your title says deposits in banks safe, no reason for anxiety:RBI. Fine. Apparently, this covers all banks. It does not specifically mentions ICICI Bank, then your post could have been placed under banking sector, MAY NOT be under ICICI Bank thread. (2) EVEN RBI Governor cannot say that the entire deposits in ICICI Bank are safe. Because, he knows that deposits in ANY BANK upto Rs.1 lac ONLY is insured and, that too, deposits in ALL Branches of any bank (including ICICI Bank) in a particular name. ...

Financial cos may have to pay 0 bn as claims on Lehman`s debts

NEW YORK: Financial companies and investment funds have to shell out up to 0 billion in claims for the insurance policies on Lehman Brothers` debts, which may worsen the ongoing credit crisis.

According to the New York Times, whether those claims can or will be paid, and the financial repercussions that could follow if they are not, will signify the biggest test for the vast, unregulated market in credit-default swaps.

The danger, the paper said, is the heavy claims on the Lehman default estimated at 0 billion to 0 billion and settling them could leave some companies with large, perhaps even crippling, losses and heighten the turmoil in the financial markets.

The magnitude of the exposure came into focus on Friday, when the price of Lehman`s bonds was set via a closely watched auction on Wall Street. The debt was priced at a little above 8 cents on dollar, leaving companies and funds that insured these debts against default on the hook for the remainder, the Times said.

The price determined the amount that sellers of bond default protection would have to pay those who bought their protection, called counterparties. The lower the bonds` price fell, the higher the payouts were going to be, the report said.

But even now, the total amount coming due is unknown because the market for credit-default swaps is not regulated or tracked through any clearing house of data. Huge value of credit-default swaps on Lehman Brothers, and the low price obtained in this au ction, mean there are billions of dollars in obligations, - the paper said quoting Eric R Dinallo, the New York State insurance superintendent. – PTI

...

In India, as on date, deposits with scheduled commercial banks (SB,Current, RD, FD) have deposit insurance cover upto Rs.1 lac (free of cost to account holders) and the banks pay the premium. BUT, Rs.1 lac insurance, covers all deposit accounts (incl.interest) AND, THAT TOO, AGGREGATE OF DEPOSITS IN ALL BRANCHES OF THE BANK. Hence, if one wants to have full safety for the deposits, they cannot keep more than Rs.1 lac in ANY single bank. Given the current crisis, and that India is one of the few countries where domestic saving is high, and a large percentage of population is senior-citizens who meet their daily needs out of interest income, it is high time that Indian Govt. raises the deposit insurance cover to atleast Rs.10 lac immediately. This will give immediate assurance to the public in general. Otherwise, one can see in the days ahead, public going in for splitting deposits from existing single bank, and depositing smaller sums in many banks. ...

Large sums of money of Indians is with swiss banks. Also, resident Indians have huge unaccounted wealth. Further, Know-Your-Customer (KYC) norms have made liqudity in the system tight. Given the current crisis, should Indian Government amnesty scheme, like Bearer Bonds etc. WITHOUT any legal hassle (and without any loophole given to the taxmen to harass) to the Indians having black money? ...

novice1000, Good message, especially - (a) that GDP expansion cant take place without capacity addition in infrastructural facilities like power, surface transportation and water facilities for domestic and industrial usage and,for strange reasons, govt had neglected these things in the past 4 years; and (b) that the relief ( I believe a major one) in the immediate future is the expected commissioning of RIL`s KG basin project. ...

With reference to RD Account, I would like to inform that you can open the a/c with minimum of one year and thereafter multibles of 3 months -say 12, 15 18 months etc.--in Corporation Bank Any senior citizen will get 0.5% additional interest for RD accounts also. Interest is the current rate applicable to the domestic term deposit rates for the period of RD selected. As we can select the amount to suit our capacity, RD will be similar to SIP with interest earned at the rate available on the opening of the account. Once opened it won`t be altered during term. v.krishnamoorthy...

chchch, But what is the RD interest rate.. not as much as FD i am sure. Now SBI is giving 11% for one year... not more than one year i guess.. i will find out tomorrow. For more than 1 year rate of interest is 10.5%. There is some trick somewhere to become wealthy but i am not able to locate leave alone knock on the doors of such a technique. Something is there. Some combination of FDs, stocks etc.... see now interest rates will fall, so buy the car, the house or whatever, and buy stocks, when stocks rise, sell and put it in FD by which time interest rates will rise and pay back ur housing loan... so on.... we have to learn to tap cycles. Thats the only way to get rich. I wonder if anyone has turned 1L to 50L here in stockmarkets.. Anybody? Method please. Thanks....

dear chchch, Thanks for your kind words. regards...

Respected Kalidasji I am here posting here A CoPy Paste massage which i have seen on another blog. Please take time to read it and what do u feel about that scenario?? Possible or Impossible??? A ...

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Surviving the bank itself is in doubts now,where is the question of rights or bonus........

typo error. HDFC Bank fv continues to be Rs.10/-...