Fixed deposit rates
This query is : Resolved
12 March 2014
In general the fixed deposit rates are higher for long period but in some cases for many banks the fixed deposit rates for 5 years are lower compared to 3 years. What is the reason behind this ??? please help
18 March 2014
well interest rates are a function of Asset - Liability mismatch. The banks fix rates on Fixed Deposits in order to attract deposits in various time buckets.
Now, if the bank has more demand in 2-3 years and less in 4-5 years, then it will fix interest rate high in 2-3 year FD bucket and less in 4-5 years bucket. This would help in raising more deposits in 2-3 years bucket as higher interest will act as incentive to depositor.
Now, if the bank has more demand in 2-3 years and less in 4-5 years, then it will fix interest rate high in 2-3 year FD bucket and less in 4-5 years bucket. This would help in raising more deposits in 2-3 years bucket as higher interest will act as incentive to depositor.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Itr 1 processing
- Off Market debit and credit transaction
- Building and other construction workers welfare cess act 1996
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR returnFY25-26
- LIC Annuity received under Jeevan Akshay Scheme
- In Exports Sales HSN details where to fill
- Form 10BD Filling
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
