by Guest Writer Jason Gluckman:

When looking at historical CD rates, it is apparent that some trends have remained constant. Generally, institutions that offer certificate of deposits grant higher rates of interests on their CDs that customers deposit money for the agree-on term than those on the CDs in which customers can withdraw the money on demand.

For instance, during 2004 most of the popular banks in the world had offered 0.4% annual rate of interest on saving account deposits which are payable on demand, 0.8% on a 3-month CD and 2% on a 2-year CD.  When studying historical CD rates, the trend indicates that over the last 30 years the rates of interest were ranging in between 2-16% annually. During 1979, the average rate of interest on CDs was 11.44% worldwide. (See also HDFC Bank housing loan rate.)

This was the rate before considering tax rate and inflation rate. During the same period, those rates were 66% and 13% respectively, which in turn left the net rate of interest of CD as 9.41%.  In 1981, the CD rate was almost 16% and in which year the tax rate and inflation rate were 66% and 9%. All of these factors have kept the net rate of return on CD as 3.5%. During the year 1986, the gross rate of interest was only 6.6%.

However the tax rate and inflation rate were comparatively low which were only 52% and 1.1% respectively. Therefore there would not be more deductions from rate of return on CDs resulting in the net rate as 2.02%.  Whatever the previous rates may be, one can say that billions of dollars have been invested in CDs during the 20th and 21 centuries.  Don’t forget to check out Axis Bank home loan interest rates here.

When deciding on whether to invest in a CD or to go for other sources of investment, Investors need to take their goals and the rate of return into account.

home equity loan rate man asked:

I have a project where I have to find the interest rates of different banks (eg. POSB, OCBC, HSBC).

Can anyone please give a detailed description of the private housing loan packages they have?

Please state the interest rates in your answer, and try not give me websites. Thanks!

By Guest Writer KS Rathore:

Reduction of Income Tax Slabs Thrust on Education, Roads and Agriculture Fiscal Deficit Reduction Increase in growth Formation of FDSC

Reduction of Income Tax Slabs

Since there is a reduction in income tax slabs it leaves the common man, the consumer with more money in hand to spend. So this budget is thought to be a refreshing change for both middle and lower income groups. But according to some of the people, it will help to negate the increasing inflation rate. Acc. to HDFC chairman, Deepak Parekh it is anticipated that reduction in food inflation will be taken care of by increased inflation in fuel, crude products and another round of increase in prices of fuel is also expected by him.

Thrust on Education, Roads and Agriculture

According to the Finance Minister,the main areas which will be focused this financial year are education, roads and agriculture. Increase in education is anticipated to be about 30%, that is an increase from 31,000 crore to a figure of 41,000 crore.

Next focus will be on roads and an increase of 20% in the development is expected in the same that is an increase to a figure of 45-46000 crore. But agriculture, which has been the weakest link of our economy last fiscal year will also be focused by introduction of new policies.

Fiscal Deficit Reduction

This is the best part to cheer about as the government borrowings will be less this year. The fiscal deficit figure expected this year is 5.5% which seems to be an achievable target according to Deepak Parekh, chairman of HDFC. Acc. to him, there are many points in Indian Economy that if they are priced properly then these figures and also the figures anticipated for upcoming years that is, 4.8% can be easily achieved and even more.

This will be mainly done with the help of disinvestment. And in the coming times it will be tax revenues which will more payable than sharp spending cuts to achieve the figures.

Increase in Growth

There will be a good increase in growth about 8-8.5% this financial year, which is expected to be more in FY11. Rate hikes, would not dent the growth of Indian Economy.  There may well be an increase in borrowing activity and interest in OCBC car, auto and home housing loans.

Formation of FDSC

This new body will be a decision making body rather than a regulatory body like the previous bodies.Actually it was initially proposed by Rajiv Ram committee but came into formation now. Acc to HDFC chairman, Deepak Parekh who waive off the rumors surrounding this body coming into picture that it’s just a coordinating body and won’t dilute RBI’s role in Indian Economy.

He says there was a dire need of such a body as RBI’s governor is not supposed to take decisions. Its name itself implies Stability as in Fiscal Development Stability Corporation. He says he is happy with its introduction as it will prove to be beneficial for the economy in a longer run.

Reader Question:

adi39b asked:
I have a hdfc bank account in Chennai (India) and want to transfer money to my paypal account. Can someone please tell me how I can do this?