When it comes to know about the realities of life, the human beings think beyond their purses. The philosophical head pops up and stabilises the ever-demanding wishes to save, rather possess money and assets.
The natural calamities in Japan have once again reminded the human race to limit their adventurous investment strategies and made them know the level of the ground to set their feet on.
Another reason to have a second look at the bank deposits is the sudden hike in Repo and reverse Repo rates by the RBI.
While going for the hike in rates, RBI pointed out that the risk to inflation remains clearly on the upside arising from domestic fuel prices and higher manufactured non-food products. In fact, in the past one year, private and public sector banks have hiked deposit rates by over 150 basis points across various tenures, and investors are finding it profitable to invest in schemes with short maturity period of less than 180 days.
So what do the people do who have just invested a few weeks ago and missed the opportunity of revised and increased rates?
One option is extend the term of your deposit so that you enjoy the interest rate applicable at the time of extension becomes the new interest of your deposit.
With the fully automated condition, this may be a lot more easy for the bank staff to do. But, in those times of manual entries, calculations and extensions, it was a nightmare for most of the staff and the officer checking the calculation used to find it risky!
And the deposit receipt with all alterations in dates, rate of interest with the signatures authenticating the revisions used to look like a fake document for a lay man!
Times have changed, but the interest for the Bank deposits by the public keeps coming bank. The trust remains with banks finally.
