SIP minimum balance `500 per month
Period of maturity Three years lock-in period
Interest offer 15 per cent average
financial goals for what one is saving for like education , marriage or retirement .
According to Association of Mutual Funds of India ( AMFI ) data , the SIP format of investing is extremely popular among investors , particularly small investors . The industry saw `67,190 crore of SIP investment in 2017-18 , which is 53 per cent higher than the previous year . In April 2018 , SIP investment in mutual funds stood at `6,690 crore against `4,269 crore during the same period in the previous year . SIPs help people to maintain their purchase cost and maximise returns . The hard-and-fast rule is that people who invest over a longer period of time can expect higher returns .
Community banks
Community banks are yet another form of investment where a group of people can come together to form a depository institution . Community banks are regulated by a community of people by adding their contributory shares in a common account . People engaged in community banking help each other in monetary terms as well as in times of financial distress . This form of investment not only
Penny Wise
Banks Offering RDs
increases the financial security of the community , but also improves bonding among members at the grassroots . Beneficiaries can borrow small amounts with lower interest rates . The interest earned from lending enable members to add it as their share in their accounts .
In September 2015 , the Reserve Bank of India shortlisted 10 micro lenders to set up small banks for micro entrepreneurs and industries and farmers in the unorganised sector . About 75 per cent of the banks ’ businesses is generated by the farm sector , which requires finances for agriculture . The eligibility criteria is that 50 per cent of the loan amount should be under
3 Years
4 Years
5 Years
5 + Years
Axis Bank |
6.25 |
6.25 |
6.25 |
6.25 |
Bank of Baroda |
6.50 |
6.50 |
6.50 |
6.50 |
HDFC Bank 6.00 6.00 6.00 6.00
ICICI Bankv |
6.50 |
6.50 |
6.50 |
6.50 |
IDBI Bank |
6.25 |
6.25 |
6.00 |
6.00 |
Kotak Mahindra Bank |
6.50 |
6.25 |
6.25 |
6.00 |
Oriental Bank of Commerce |
6.50 |
6.50 |
6.50 |
6.50 |
Punjab National Bank |
6.50 |
6.25 |
6.25 |
6.25 |
State Bank of India |
6.25 To 6.00 |
6.00 |
6.00 |
6.00 |
Yes Bank |
6.75 |
6.75 |
6.75 |
6.75 |
Source : bankbazaar . com / interest in % |
|
|
|
|
`25 lakh . According to RBI guidelines , the promoters in small banks should contribute at least 40 per cent of the money .
B . Gopkumar , Executive Director and Chief Executive Officer , Reliance Securities says , “ The community banks go a long way as they give an ease of access . People turn up to your door to collect your monthly installments .” He , however , points out that the country ’ s metropolitan cities are seeing new habits of investing . “ There has been a shift from traditional methods of banking like FDs to mutual funds and SIPs with the new generation taking command .”
Bankers say that the young generation is tech-savvy and are willing to explore new investing options . Pranadiv Kumar , who recently graduated from Delhi University says , “ I started saving in SIP as they are easily accessible and everything is available in the digital platform . The mutual funds are highly advertised , which helps in drawing public attention . For me , mutual funds is the option where I can get higher returns from minimal monthly investments .”
To sum up , it does not matter which financial intrument you choose for saving . As the saying goes , money saved is money earned .
www . outlookmoney . com July 2018 Outlook Money 59