Financial planners point out that corporate deposit rates are on a downward trend in line with the general fall in rates in the system and easy liquidity.
After the cut in interest rate, investors can now earn 5.7% for a 15 month deposit, 5.8% for 22 months, 5.75% for 30 months, 6.1% for a 44 month deposit and 6.25% for a 66 month deposit. Investors have a option to take interest monthly, quarterly, half yearly, annually or cumulative basis.
For those looking for a 1-3 year tenure deposit, HDFC Limit scores marginally over the post office time deposit which pays 5.5% per annum. However for a 5 year deposit, the post office pays 6.7% which is significantly higher than HDFCs highest rate of 6.25%.
The post office did not cut rates for the October – December quarter and it pays the same rates, making longer tenure deposits more attractive there.