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
Nikhil Kaushik
(Expert)
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
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Non filing of I T Returns
- SALARY CAN BE CAPITALIZE
- TDS on Fixed Assets purchased
- TDS on purchase of under construction property from a reseller
- GST Intimation due to Government took possession of Business Premises under PPE Act
- GST on Renting godown to KFCSC for Storage of Raagi
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
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
