RCom & Microsoft In Pact To Bring IPTV To Indian Market

Reliance Communications (Rcom) and Microsoft Corp have signed up a strategic partnership contract to bring Internet Protocol Television (IPTV) services in the Indian market.

Anil D Ambani, chairman, Reliance Communications, and Steve Ballmer, chief executive officer of Microsoft will jointly made the above announcement at a press conference in Mumbai.

The IPTV service, powered by the award-winning Microsoft Mediaroom IPTV software platform, will let Rcom to offer completely new, connected and individualized TV experiences for Indian users, with advanced features, including digital video recording (DVR), video on demand (VOD), instant channel changing and personal media sharing.

IPTV subscribers will be capable of watching popular standard definition (SD) content plus high-definition (HD) content by just clicking a single button at their homes, and get pleasure from a connected entertainment experience.

The companies will launch the IPTV service by the end of the existing fiscal (March 2008).

Mr. Ambani said, “As consumers today are becoming more sophisticated, they are demanding more compelling and personalized entertainment to suit their individual needs and preferences. Until now, TV has been a broadcast, 'one-size-fits-all' experience. Backed by powerful Microsoft Mediaroom software, IPTV promises to offer our subscribers more choice, control and convenience, and at the end of the day, a unique and more satisfying user experience. We're excited to partner with Microsoft to unlock the potential of television and offer Indian subscribers the very best TV and connected entertainment experiences."

"Reliance is about to change the way consumers experience television," Ballmer said. "TV is the only major digital device that has been left out of the networking revolution, and Microsoft and Reliance are now making the TV a first-class citizen in the connected entertainment landscape. By connecting the TV to an intelligent two-way network and adding powerful software, new connected and personalized experiences will become possible here in India."

IPTV is in an early stage in India, and the two companies have been working on the IPTV platform since 2003.

Ravi Venkatesan, chairman of Microsoft India said, “In addition to the obvious benefit that will come to the consumers, this offering will also benefit the media industry at large. Whether it is the content providers, the platform owners or the advertisers, they will get better value for their money. This is critical for the long-term growth and sustenance of the television industry.”

Read more: "RCom & Microsoft In Pact To Bring IPTV To Indian Market | Stock Watch" -http://www.stockwatch.in/rcom-microsoft-pact-bring-iptv-indian-market-27#ixzz0Gnfd2uUs&A

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Reliance Energy can touch 2520 soon, Rajat K Bose

Technical Analyst Rajat K Bose expects Reliance Energy to touch Rs 2520. Mr. Bose said in an interview that the stock has enough steam to touch its all time high and can even cross Rs 2520. The stock may face some resistance around those levels, but after that it can even have more upward movement.

Reliance Energy is currently in buy mode and the stock has a lot of momentum. Reliance Energy has touched an all time high of Rs 1959 recently. All stocks of both Reliance Groups have seen a decent gains over last couple of years. The companies are showing good performance and investors are betting on these blue chips

Read more: "Reliance Energy can touch 2520 soon, Rajat K Bose | Stock Watch" -http://www.stockwatch.in/reliance-energy-can-touch-2520-soon-rajat-k-bose-23#ixzz0GnfPzoJm&A

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Reliance Energy looks good at current levels

Reliance Energy is buzzing for last couple of weeks. The stock has seen decent gains and also have lost substantially in few trading sessions. The company has good fundamentals. The Power sector is looking promising.

Stock Analyst Deepak Mohoni expects Reliance Energy to offer a return of 10 - 15% over next two months. It will be good to accumulate the stock at every correction. The delivery based position with a time period of 2 - 4 months will offer good returns to investors.

The stock was up by 1.2% today and ended the day at Rs 1670. Reliance Energy has touched a high of 1,959.00 and a low of 436.10 during last 52 weeks. At current price, Reliance Energy is having a P/E ratio of 45.

Read more: "Reliance Energy looks good at current levels | Stock Watch" -http://www.stockwatch.in/reliance-energy-looks-good-current-levels-22#ixzz0GnfECmQY&A

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Reliance Mutual Fund launches infra fund

Reliance Anil Dhirubhai Ambani group-controlled Reliance Mutual Fund has announced that it has introduced Reliance Infrastructure Fund.

According to company authorities, the newly launched infrastructure fund is an open-ended fund, which aims to generate long-term capital appreciation by investing in equity and equity-related instruments of companies engaged in infrastructure and infrastructure-related sectors like transport, banks and financial institutions, energy, power and oil, metals and minerals, telecom and urban infrastructure.

The new fund provides Retail Plan and Institutional Plan. Each plan has two Sub-Options:-

Growth Option.

Dividend Option.

The minimum investment in the fund would be Rs 5000/- and in multiples of Re1/- thereafter for Retail plan and Rs 5,00,00,000/- and in multiples of Re1/- thereafter for Institutional plan.

The sources said that 65% assets of the fund will be invested in engineering, cement and power stocks as well as banks, whereas the rest will be pumped in debt and money markets.

The sources further added that the scheme would offer investors opportunity to buy or sell units on ongoing basis from not later than 30 days after the close of the new fund offer on June 23, 2009.

As per media reports, Reliance Mutual Fund is managing a corpus of over Rs 88,388 crore for over 71-lakh investors as on April 2009.

Read more: "Reliance Mutual Fund launches infra fund | Stock Watch" -http://www.stockwatch.in/reliance-mutual-fund-launches-infra-fund-22185#ixzz0Gnefi0Ii&A

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Expect Indian Stocks Market to remain positive today

The markets ended sharply lower after consolidating for couple of days. The Sensex shed 324 points or 2.33% to settle at 13,589 after hitting a low of 13,518. The Nifty touched an intraday low of 4092 before closing the day at 4117 down 2.85% or 121 points. The broader markets on the BSE also witnessed huge selling. The BSE small cap index fell 3.1 % and the BSE midcap index shed 3.4 %.

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Base Metals Trading Techniques and Market Research Data

Base metals complex gained some ground on the expectations of fresh buying following better than expected U. S. Consumer Confidence Index data.

MCX Nickel witnessed a sharp rise of more than 5%, ending the day at Rs. 637.1. Copper and lead were up by 2.41% and 1.41% in the last trading session on MCX.

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Bharti Group setup JV to enter food & beverages market

After establishing its footprints in various segments, Sunil Mittal-led Bharti group has ventured into the food and beverage (F&B) segment, in alliance with Singapore-based Del Monte Pacific.

The 50:50 joint venture will be known as Field Fresh Foods Pvt Ltd.

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Reliance Mutual Fund launches infra fund

Reliance Anil Dhirubhai Ambani group-controlled Reliance Mutual Fund has announced that it has introduced Reliance Infrastructure Fund.Reliance Anil Dhirubhai Ambani group-controlled Reliance Mutual Fund has announced that it has introduced Reliance Infrastructure Fund.

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Trading strategy for Gold and Silver Futures

Precious metals jumped initially but ended the day flat as the rise in dollar against the Euro and the U. S. housing data released last day did not support the rise in Gold prices.

The dollar rose against the euro on Wednesday as fears of a U. S. credit downgrade faded and a European Central Bank official said interest rates could fall further if economic conditions worsened.

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Base Metals Trading Techniques and Market Research Data: Nirmal Bang

Base metals remained subdued and ended the session in the negative territory. The rise in dollar against the Euro made base metals expensive for investors and the U. S. housing data too could not inspire an upside in base metals.

Copper and Nickel were down by Rs. 1.55 and Rs. 7.2 respectively on MCX. COMEX Copper declined by almost $80 on LME.

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Energy Sector and Oil Futures Update for Commodity Traders: Nirmal Bang

U. S. crude futures rose on Wednesday as the crude inventories fell more than expected. It rose by $1 and closed the day at $63.45. Fall in gasoline inventories also supported the upside in crude prices.

Natural Gas, which remained laggard, also rose by Rs. 1.2 on MCX.

U. S. inventories of crude oil fell more than expected last week as imports remained relatively low, the American Petroleum Institute said on Wednesday.

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Indian Markets to remain strong: Nirmal Bang

The benchmark indices ended on a very strong note ahead of the F&O May expiry, led by the positive cues from the US and the Asian region after US consumer confidence jumped to its highest level since September. The Sensex finished at 14,110 up 520 points, after trading between 14,122 and 13,780. The Nifty rose 3.8 % to close at 4,276 up 159 points, after trading between 4,286-4,189. Among the broader indices - the BSE smallcap index surged 3.4 % and the CNX midcap index gained 3.2 %.

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Expecting Good Budget and Reforms, Indian Markets may remain strong

A spike in U. S. Treasury yields triggered a selloff in equity markets on Wednesday, as investors feared rising funding costs might delay a potential recovery in the world's largest economy. The three main U. S. stock indexes turned negative early afternoon as Treasuries maturing in 10 and 30 years lost over a full point in price, sending yields to six? and nine? month highs, respectively.

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Education Loans

Education is the essence of life. To ensure that no deserving student is denied education for want of funds, the government is promoting education loans in a big way. The basic aim or idea behind education loan is to bring education within the reach of students and help them improve their prospects in life. Any student who has secured admission in an institute of repute, whose degree/diploma is recognized by University/Institute affiliated to any Central/State Statutory Body or recognized by AICTE (All India Council of Technical Education) and other institutes of repute, is eligible for educational loan.

Education loans cover cost of the school/college fee, hostel expenses, and cost of books and stationery. Apart from this, any other expense required to complete the course can also be considered. The maximum amount of education loan is up to Rs. 7.50 lakh in case of studies in India and Rs 15 lakhs for studying abroad. The sum of money offered is against a third-party guarantee. The third-party guarantee can come from an uncle, neighbor or friend standing guarantee for the full amount of the loan.

On an average, an education loan has to be repaid over a period of 5 to 7 years, with the provision of a grace period of one year after completion of studies. The loan money has to be repaid within 84 months in equated monthly installments (EMIs), commencing 12 months after course completion or 6 months after getting the job, whichever is earlier. In case of overseas study loan of 7 lakhs or above, the sum of money is usually given against fixed deposits, NSC certificates and property worth the loan amount.

General Information

• The exact rate of interest for education loan differs from one bank to the other. However, it usually varies from 10 to 15 percent.
• Apart from the fee of the course, a list of other expenses is also covered by education loans. However, the list depends upon the bank from which you are taking the loan.
• Education loan can be offered at fixed as well as floating interest rate. The interest is usually charged on a daily or monthly reducing balance.
• Generally, nationalized banks have been seen to offer variable interest rates, while private and foreign banks charged fixed interest rates on education loans.
• While applying for education loan, you will have to pay a percentage of the loan amount, as processing fee.
• In most of the cases, the entire fee for a course is not financed by the bank. A certain proportion, called margin, has to be paid by the applicant. The margin requirements on education loans are not very rigid, with the average being 5 percent for studying in India and 15 per cent for abroad.

Eligibility Criteria

• The applicant should be an Indian national.
• He/she must have secured admission to professional/technical courses, through entrance test/selection process
• He/she should be around 16-26 years of age or any other range specified by the bank.
• He/she should not be a minor.
• He/she should have a good academic track record.
• He/she should have parents or guardians with stable source of income.
• He/she should have secured admission to a recognized university in India or abroad.

Documents Required

• Mark sheet of last qualifying examination for school and graduate studies in India
• Proof of admission to the course
• Schedule of expenses for the course
• Copies of letter confirming scholarship, if any
• Copies of foreign exchange permit, if applicable
• 2 passport size photographs
• Statement of Bank account for the last six months of borrower/parents
• Income tax assessment order, not more than 2 years old
• Brief statement of assets and liabilities of borrower/parents
• If not an existing bank customer, Proof of Identity and Residence
• Two passport size photographs

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Home Loan Providers in India

Real estate in India is currently one of the hottest investments options in Asia. A recent survey of the real estate scenario acknowledge the Indian metropolis of Mumbai, Bangalore and New Delhi as the top three investors' choices for real estate investment in Asia. But there were concerns mainly related to the availability of necessary funds for investment and in the more recent times, the boom in the real estate market opened the doors for a host of realty funds from financial institutions. Prior to five years, the real estate segment in India was neither organized nor were there too many large institutions in the construction industry. But now with an organized finance sector and with the increase in transparency levels, it has become easier to create financing vehicles. The decrease in housing loan interest rates and an increase of disposable income has contributed largely to an increased demand in the residential segment. In spite of a rise in home loans interest rates and qualitative sanctions being levied by the RBI on banks, buying interest has not waned because home loans are still cheaper than ten years ago. The retail markets are also undergoing a defining change with the introduction of larger retailing formats. The financial institutions also wasted no opportunity in tapping the fund requirement catering to the inflow of potential buyers in the retail sector. While most funds were initially floated by financial Institutions or banks such as HDFC, ICICI Bank and IDBI Bank to name a few, real estate developers like DLF Universal and even retailers such as Pantaloons Retails (India) have now entered the real estate sector for creating more retail facilities and have been hugely successful. As the realty prices in India skyrockets, housing complexes mushrooming and city landscapes becoming unrecognizable, the growth across all real estate segments and experts estimate that demand will remain steady at the currently high levels because of the improving economic environment and the real estate sector is expected to grow 30% every year. This rising property prices encourage banks and financial institutions to lend more with the increase in collateral values. Although the home loan providers have hiked their rates twice in less than three months, home loans continue to be nearly 45 per cent cheaper than what they were in early 2001. Because if statistics are referred to, the interest rates which now range between 9-10 per cent, are still much lower than what they were ten years ago, at 16-17 per cent. In addition to funds being raised by the Indian financial institutions like HDFC, ICICI and IDFC abroad, the money could be used to develop business and IT parks and townships. A study has revealed that as many as one million homes are financed every year in India now with an estimated home mortgages market of US$ 10.7 billion - contributing to India's phenomenal realty prospect

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Tax Benefits on Home Loans

As the Indian real estate market makes an upward swing, and investors opt for housing finance or home loans, tax benefits obtained from them is a lucrative option. Customers availing of Home Loans can claim a certain portion of the interest and principal that they pay towards the loan installments for reducing tax liability. Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. Moreover, an added tax benefits under Sec 80 C on repayment of principal amount up to Rs. 1,00,000 p.a. can be availed that can further reduce your tax liability by about Rs. 30,000 p.a.

Tax benefits can be claimed on both the principal and interest components of the home loan as per the Income Tax Act, 1961. These deductions are available to assesses, who have taken a loan to either buy or build a house, under Section 24(b). Interest on borrowed capital is deductible up to Rs 150,000 if the following conditions are satisfied:

Capital is borrowed on or after April 1, 1999 for acquiring or constructing a property.
The acquisition/construction should be completed within 3 years from the end of the financial year in which capital was borrowed.
The person, extending the loan, certifies that such interest is payable in respect of the amount advanced for acquisition or construction of the house
A loan for refinance of the principle amount outstanding under an earlier loan taken for such acquisition or construction.
If the conditions stated above are not fulfilled, then the interest on borrowed capital is deductible up to Rs 30,000 though the following conditions have to be satisfied:

Capital is borrowed before April 1, 1999 for purchase, construction, reconstruction repairs or renewal of a house property.
Capital should be borrowed on or after April 1, 1999 for reconstruction, repairs or renewals of a house property.
If the capital is borrowed on or after April 1, 1999, but construction is not completed within 3 years from the end of the year, in which capital is borrowed.
In addition to the above, principal repayment of the loan/capital borrowed is eligible for a deduction of up to Rs 100,000 under Section 80C from assessment year 2006-07.

Terms and conditions for availing Tax benefits on Home Loans

Tax deductions can be claimed on housing loan interest payments, subject to an upper limit of Rs 150,000 for a financial year. Interest on the fresh loan can be claimed as a deduction, subject o the stated upper limit.
An additional loan for extension/addition to the same house and the person's deductions on the existing loan are less than Rs 150,000; he can claim further benefits from the additional loan taken, subject to the upper limit of Rs 150,000 for a financial year.
Tax benefits under Section 24 and deduction under section 80C of the Income Tax Act can be claimed only when the payment is made. If a person fails to make EMI payments, he cannot claim tax benefits for the same.
According to the Income Tax Act, only the person who has taken the loan can claim tax rebates.
The interest on home loans taken for repairs, renewals or reconstruction, also qualifies for the deduction of Rs 150,000.
A husband and wife, both of whom are tax-payers with independent income sources, get tax deduction benefits, with respect to the same housing loan; to the extent of the amount of loan taken in their own respective name.
If a person buys a house and sells it within the same year/after 3 years, and if any profit is made, then a capital gains tax liability arises on the same for which the individual is liable to pay short-term capital gains tax since the sale took place in the same year. But, if the sale had taken place after 3 years, then a long-term capital gains tax liability would have arisen.
If it is proved that the home loan is simply an arrangement between the loan-seeker and the builder or with a third party for the purpose of claiming tax benefits, then tax benefits will not be allowed and benefits, previously claimed, will be clubbed to the income and taxed accordingly.
Tax benefits on interest on housing loans are allowable only for the original loan and for a second loan taken to repay the first loan and not for subsequent loans. This means that if you have already availed of one loan to refinance the original loan and want to now avail a third loan to refinance the second loan, tax rebate on interest payments will not be permissible. This is because the Section 24 (1) only talks of the second loan and not of subsequent loans. Even if you take the second loan at a rate of interest higher than the original loan, you will be eligible for a tax rebate on the second loan.

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Home Loans in India

The Home loan sector in India is the pi-votal role player in the growth of the real estate scenario in India. With tax incentives given to the housing finance sector in the annual budget of 2001, transactions related to buying and selling of residential properties increased considerably and was much higher as compared to previous years.

Since the new class of buyers are relatively younger set of customers who are more aware about legal documentation and approvals, buyers are now more 'end-users' rather than investors; theproperty market in India undergoes transformation to align itself with global standards with an increased emphasis on quality & cost control and documentation methods. In the current economy of India, the real estate sector has the maximum propensity to generate income and demand for materials, equipment and services. It can be said that housing finance companies were formed for co-existing with buyer's requirements of housing loans for investing in properties. Home loans are made available by financial institutions to both Indian and NRI customers at floating and fixed rate of interest and also at attractive EMI options.

For construction or buying a new home

For home repairs and renovations

For purchase of plots

Against mortgage of property
No tax benefits are available for NRI customers unless you file returns and thereby become eligible to avail of the tax benefits.

Besides home loans, Commercial property loans are also available and different financial institutions in India provide commercial loans at different rates and different upper limits.

Real estate loans are available to builders, promoters and real estate developers. The experience and financial standing of the builders is taken into account before the loan is granted which is to be returned with the minimum installments.

Today, the amount of money that a city dweller spends on rent is roughly the same, or only slightly less than the amount he pays as an EMI on a housing loan. Earlier the home loan sector in India was solely dependent on nationalized and public sector banks, but the entry of public sector banks into the housing finance business marked the beginning of the first round of interest rate cuts. And this reduction in interest rates has enhanced the borrowing power of customers. Moreover, HFCs are offering incentives to attract investors like
Some companies sanction the housing loan without requiring you to identify property as a pre-requisite for eligibility

Free accident insurance & property insurance

Waiving of pre-payment penalty

Waiving of processing fee
There are a few documents which the finance companies require for setting up criteria for eligibility of Home loans.

Salaried Employee	Self-employed
The latest salary slip showing statutory deductions	Computation of income for the previous two years, certified by a Chartered Accountant
Form 16 (showing tax deducted at source by employer)	Profit & Loss Account and Balance Sheet for the previous two years, certified by a Chartered Accountant
Proof of age (birth certificate/voter identity card/passport/school-leaving certificate/valid driving license	Proof of age (birth certificate/voter identity card/passport/school-leaving certificate/valid driving license)
Proof of residence (phone bill/electricity bill/ration card).	Proof of residence (phone bill/electricity bill/ration card).

The realty boom in India has given a new dimension to the finance sector in India - both in Home Loans and Home Insurance segments. This has not only given a competitive edge to the finance companies to provide attractive options to customers but has also contributed to the increased investments in the real estate sector. This has resulted in 13 new institutions foraying into the housing finance business in the last three years.

Major Home Loan Providers
Banks & Public Sector Housing Finance Companies	State Bank of India, Corporation Bank, Punjab National Bank, Central Bank, Dena Bank, Allahabad Bank, Bank of Maharashtra, Bank of Baroda Housing Finance, Can Fin Homes, GIC Housing Finance, LIC Housing Finance, PNB Housing Finance, SBI Home Finance, Centbank Home Finance, HUDCO, LIC, etc.
Financial Institutions	HDFC, ICICI Ltd, Citibank, HSBC, StandardChartered- Grindlays, IDBI Bank, etc

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Fixed Deposits from Mahindra Finance

Want to still get 10% interest rate even after banks cut off the interest rates? !! Check out the fixed deposit scheme from Mahindra Finance.

Cumulative Scheme
Min Amount	Period (Months)	Interest* p.a.	Amount Payable	Effective yield p.a.
Rs 10,000	12	9.00%	Rs 10,900	9.00%
	18	9.25%	Rs 11,430	9.53%
	24	9.50%	Rs 11,990	9.95%
	36	10.00%	Rs 13,310	11.03%
Non Cumulative Half - Yearly Scheme
Min Amount	Period (Months)	Interest* p.a.
Rs 25,000	12	8.75%
	24	9.25%
	36	9.75%

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Fixed Deposits from Tata Motors

Want to still get 10% from fixed deposits? !! Checkout the fixed deposits from Tata Motors:

Investment Option I: Scheme A - Quarterly Income Plan*
Period	Minimum Amount (in Rs)	Rate of Interest (p.a.) till April 15, 2009		Rate of Interest (p.a.) w.e.f April 16, 2009
1 Year	20,000	10.00%		9.25%
2 Years	20,000	10.50%		9.50%
3 Years	20,000	11.00%		10.00%
* Monthly interest option available in case of deposits of Rs.1 lakh & above.
Investment Option II: Scheme-B Cumulative Deposit Plan
Period	Minimum Amount (in Rs)	Rate of Interest*(p.a)		Maturity Value (in Rs)		Yield (p.a.)*
		till April 15, 2009	w.e.f April 16, 2009	till April 15, 2009	w.e.f April 16, 2009	till April 15, 2009	w.e.f April 16, 2009
1 Year	20,000	10.00%	9.25%	22076	21915	10.38%	9.58%
2 Years	20,000	10.50%	9.50%	24607	24131	11.52%	10.33%
3 Years	20,000	11.00%	10.00%	27696	26897	12.83%	11.50%
* Compounded quarterly

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FIXED DEPOSIT - 5 WAYS TO GET THE MOST OUT OF IT

For people looking to invest their hard earned in money in safe investment options, Fixed deposits with banks comes on top of their priority list. This is because of the fact that bank FDs are absolutely safe and secure investments. The chances of banks defaulting on fixed deposit payments are almost nil since the banks are heavily regulated by RBI which ensures that the bank is in sound financial position. Fixed deposits become more popular in times of instability in equity markets. Fixed deposits are also a favourite with senior citizens. Considering that FDs are one of the most widely used investment options by millions of people, we need to know the various ways in which we can get the maximum benefit out of FDs.I am listing down the following "5 Points to Ponder" before you put your money in a fixed deposit.
1. Rate of interest- The first and the most obvious thing to look at while deciding on your fixed deposit is the rate of interest being offered by various banks. The rate of interest can vary a great deal between banks for similar tenure of fixed deposit and hence it makes sense to find out the bank which gives you the best deal. However, you must also consider the safety and stability of the bank itself . Generally , the co-operative banks offer higher rate of interest as compared to other bigger banks like SBI, ICICI etc. But since co-operative banks are not as solvent and stable as some of the other banks, you will do well to stay away from them. You must compare rates offered by similar banks. For example, you may consider the rates offered by SBI, ICICI, PNB, HDFC, AXIS,CITIBANK,HSBC etc. This is just an indicative list. The idea is to stick to larger banks.

2.Frequency of compounding of interest rate - The second point to consider while choosing the bank for your FD is the frequency with which the bank compounds the interest. Banks generally compound interest earned quarterly, half yearly or yearly. The best frequency is quarterly as it results in higher effective rate of interest for you. For example, If both bank A and Bank B offer to take FD for a year at 10% pa. and offer compounding of interest at quarterly and yearly basis respectively, then the effective rate of interest that you will get on your FD with bank A (quarterly compounding )will be higher than the effective rate of interest on your FD with Bank B.

3. Tax Benefit - If you are looking to invest your money in safe and secure manner while also saving tax under Sec 80 C on Income Tax Act, then tax saving FDs are just right for you.In that case , choose only those FDs which offer tax benefits under Sec 80 C. All FDs do not qualify for tax break under Sec 80C. Also you must consider the rate of interest offered by various banks on their tax saving FDs and settle for the one giving you the best deal.These fixed deposits have a lock-in period of five years and premature withdrawal is not allowed. You can’t use this deposit as a means to secure loan from the bank and the maximum amount you can invest in this instrument is Rs 1 lakh. HDFC Bank at present offers 9.50% interest (calculated quarterly) on tax-saving FDs as well as on regular FDs for 5 years. ICICI Bank, on the other hand, gives 8.5% interest (calculated quarterly) on tax-saving FDs and 9.5% (calculated quarterly) interest on regular FDs for 5 years.
If you fall in the higher tax-slab, investing in tax-saver FDs will fetch you more return than a regular FD as tax-saving FDs are exempted under Section 80C.

4.Interest reinvested or paid - Almost all FDs offer the option of either having the interest amount reinvested in your FD or have the interest amount cashed out. The option that you need to choose will depend on your needs. For example, if you are a retiree or a senior citizen who requires liquidity at regular intervals, then you might consider opting to cash out your interest payment. However, if you are still young and in accumulation stage, then you must have your interest component reinvested . this will ensure higher effective rate of interest for you at the end of the tenure and your interest component too earns interest on it.

5. Splitting the FD -TDS (tax deductible as source) at 10% is applicable on fixed deposits in India , if the interest earned exceeds Rs 10,000 in a financial year. To avoid TDS, you can split your fixed deposits, that is, open fixed deposits in different branches of the bank, so that the interest earned does not exceed Rs 10,000 in a particular branch. You could also open fixed deposits in different banks to avoid TDS. Splitting you fixed deposits has another benefit as well. If you are in need of urgent cash and need to withdraw money, you won't have to break all your fixed deposits.

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