WHATS GOOD IN THE CURRENT SCERANIO - ITS THE GOOD OLD BANK FDS

The BSE sensex is below 9000 and the Nifty below 2500. What more gloom was expected by the investors who were told by Financial Experts and Advisors that by Nov 08 the stock market will touch 25000. Forget 25000 the market has fallen from a high of 22000 to less than 10000 and that's rally scary.
Many leading stocks have taken a hit of about 80% to 65% and that shows the gloom on the face of the Indian Investors. At this point of time whats best for the common man ??
It's the age old Bank Fixed Deposit which turns our attention to. A typical bank FD is secure and has varying tenures. Just a few months back the maximum interest rates offered was about 9.5 to 10% by almost all Banks Nationalised, Private or Cooperative Banks.But now the interest rates are between 10.5% to 11 % for general depositors. In case of senior citizens the rate varies by about 0.5% to 1%.
The question asked is : "Is my money safe in Bank FD's" and the most likely answer is "Yes".
Bank FD's are generally conservative and assures the depositors a fixed monthly , quarterly or annual income.The only point to note is that nearly all Bank FDs are subject to TDS and are taxable. So the general depositor should take into account the Tax Liability that is bound to occur on investing in Bank FD's.
The Finance Minister has given an assurance that "All Banks are safe" and that brings a sense of relief to the general public who have FD's and Savings accounts in banks.
I, have listed banks which offer good rate of interest for a tenure of a year and above for general depositors and senior citizens.
STATE BANK OF INDIA is offering 10% on 1 year to less than 2 years and 10.5% on a 1000 day deposit AND 11% for senior citizens . In case of senior citizens 10.5 % for 1 year to less than 2 years.
UNION BANK OF INDIA is offering 10.5% for 900 days general depositors and 11% for senior citizens for the same period. There is No premature Closure Penalty.
TamilNad Marcantile Bank is offering 11% for 777 days for general depositors and 11.30% for senior citizens. For general deposits 1year-775 days they are offering 10.5% and 10.75 % for senior citizens.
Catholic Syrian Bank is offering 10.7% for 1 year deposit for general depositors and 11.20% in case of senior citizens for the same period.
Punjab Maharashtra Cooperative Bank is offering 11% for 13 months only and 12% for senior citizens this offer being valid till 31st Oct 2008.
Maharashtra State Cooperative Bank is offering 10% for depositors 1 year to less than 3 years and 0.5% extra for senior citizens.This bank has a unique deposit scheme : 3 years and above (10 years) 9% (0.5% extra for senior citizens).
Jankalyan Sahakari Bank is offering 10% and 10.5% (senior citizens) for More than 1 year to 2 years.
HDFC Bank is offering for 6 months 15 days - 6 months 16 days / 9 months 15 days - 9 months 16 days/1 year 15 days - 1 year 16 days, 10.5% for general depositors and 11% for senior citizens.
ING VYSYA is offering 11% for 365 days deposit and 11.5% for senior citizens, 10.5% for 366 days to two years 11% for senior citizens and has a unique 10% for 66 days.
SOUTH INDIAN BANK is offering 10.6% for 300 days ,10.5% for 3 years and 0.5% additional for senior citizens.
CORPORATION BANK is offering 10.5 % for 12 Months to 15 Months deposits and 0.5% extra for senior citizens.
SHAMRAO VITHAL COOPERATIVE BANK is offering 10.6% for general and 11.10% for senior citizens for 365 days.
Advisory
An important point to note is that most Banks have a premature penalty.Hence it becomes necessary for one to decide the tenure and invest accordingly. Remember that inflation is hovering just about 11% and the markets will not revive for at least a year and a half its advisable to invest in FDS for at least a year to 2 years.
Caution
Spread your FDs across banks so that just in the worst case scenario the insurance cover of 1 lakhs is eligible for deposits in each bank. This will reduce your risk considerably.
Tips
You can even make sure that your deposits in a single bank are insured, by having multiple joint accounts with different “first holders”. Insurance tends to be offered in the first holder’s name.To make sure that the financial health of the bank in which you invest is good, look for the NPA (CALLED NON PERFORMING ASSETS ) ratio which is obtained from the Profile column from every bank website or from the bank itself. A ratio of less than 2% is generally looked upon as good.
Most banks offer additional incentive interest on bulk single receipt FDs say 15 Lakhs and above where they offer 0.5% more interest.
In case of Cooperative Banks it is best to become a Nominal Member of the Bank or Some Cooperative banks allow Saving Bank Holders to become Share Holders. This will save you the headache of TDS or filling form 15H (in case of senior citizens) or 15G (for others whose income is below the taxable limit)