Wazua
»
Investor
»
Bonds
»
FIXED DEPOSIT TERMS
Rank: Member Joined: 1/24/2013 Posts: 325
|
MatataMingi wrote:I have fixed deposit accounts at several banks - all for one year.
There is no automatic renewal.
Before the end of the term YOU decide if you want to renew, and hassle for the best new rate of interest. If you agree it is renewed at the new rate. If not you get your capital plus interest and can shop around for a better rate.
At the moment, out of the "safe" banks I think I&M give a good rate.
Otherwise go for T bills or Bonds. So right now if I have a loose milli, should I do T-Bills or an FDA? Which bank? I have in the past only dealt with Consolidated for both..
|
|
|
Rank: Elder Joined: 4/30/2008 Posts: 6,029
|
ChumsQuest wrote:MatataMingi wrote:I have fixed deposit accounts at several banks - all for one year.
There is no automatic renewal.
Before the end of the term YOU decide if you want to renew, and hassle for the best new rate of interest. If you agree it is renewed at the new rate. If not you get your capital plus interest and can shop around for a better rate.
At the moment, out of the "safe" banks I think I&M give a good rate.
Otherwise go for T bills or Bonds. So right now if I have a loose milli, should I do T-Bills or an FDA? Which bank? I have in the past only dealt with Consolidated for both.. Look at the thread on Faulu vs TBILLS.
|
|
|
Rank: Member Joined: 11/17/2009 Posts: 399 Location: Where everyone knows you
|
ChumsQuest wrote:MatataMingi wrote:I have fixed deposit accounts at several banks - all for one year.
There is no automatic renewal.
Before the end of the term YOU decide if you want to renew, and hassle for the best new rate of interest. If you agree it is renewed at the new rate. If not you get your capital plus interest and can shop around for a better rate.
At the moment, out of the "safe" banks I think I&M give a good rate.
Otherwise go for T bills or Bonds. So right now if I have a loose milli, should I do T-Bills or an FDA? Which bank? I have in the past only dealt with Consolidated for both.. Depending on your timescale, I would suggest T-Bill of 91, 182 or 364 days.
|
|
|
Rank: Veteran Joined: 11/17/2012 Posts: 1,461 Location: Ngong Forest
|
Impunity wrote:Ngong wrote:And the USD rates quite good,are we heading to hundred?  If a certain coalition wins then USD rate will hit 150 by June 2013; dump and wait for rate to come down. @lmpunity did the coalition win?
|
|
|
Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
|
Ngong wrote:Impunity wrote:Ngong wrote:And the USD rates quite good,are we heading to hundred? If a certain coalition wins then USD rate will hit 150 by June 2013; dump and wait for rate to come down. @lmpunity did the coalition win? June 2013 bado fika. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
|
|
|
Rank: Member Joined: 10/29/2009 Posts: 40
|
before you put your money in a fixed deposit account, consider a money market fund with a unit trust, they usually have better rates and more flexibility
|
|
|
Rank: Veteran Joined: 11/17/2012 Posts: 1,461 Location: Ngong Forest
|
Impunity wrote:Ngong wrote:Impunity wrote:Ngong wrote:And the USD rates quite good,are we heading to hundred? If a certain coalition wins then USD rate will hit 150 by June 2013; dump and wait for rate to come down. @lmpunity did the coalition win? June 2013 bado fika. Okay noted,wil wait.
|
|
|
Rank: Veteran Joined: 11/17/2012 Posts: 1,461 Location: Ngong Forest
|
mwekez@ji wrote:Impunity wrote:mwekez@ji wrote:iMANI wrote:@mwekez@ji
Most term loans are repayable in monthly instalments, hence, I do not understand where you get the Kes 149,342?
Anyway, true MOST banks will never loose money in a lending arrangement, but if you're keen enough, you will actually pull this one off...I'm speaking from a real scenario as previously described where the loan is on reducing balance and FDR is on simple interest.. My example above seems complex for you so i choose to use your example where your profit in the loan arrangement is KES 24,605 after 36 months. If in your example you used your KES 1M therefore avoiding the borrowing and then opened a recurring deposit account where you deposit the KES 34,177 p.m., for 36 months, at an interest rate of 10% p.a., compounded annually, you would make a profit of KES 199,600 after the 36 months unlike the meager KES 24,605 in the loan arrangement. You may use this Recurring Deposit Calculator to confirm the hesabu >>> https://www.corpbanknet.com/Recurr_deposit_Calc.html. That takes me back to the question, why take a loan that is 100% secured by cash. Its just like giving the bank your money at a low interest rate then borrowing it at a high interest rate. Your monthly loan repayments gives the bank more money for onward lending making the bank richer. .... why not make yourself richer by atleast using the cash then opening a recurring deposit account as explained above Which bank offers the recurring deposit facility in Kenya?  My Bank >>> http://www.imbank.com/accounts/recurring-deposits/ @Mwekezaji saidia,what is recurring deposit in simple terms please?
|
|
|
Rank: Veteran Joined: 12/23/2010 Posts: 1,229
|
Ngong wrote:mwekez@ji wrote:Impunity wrote:mwekez@ji wrote:iMANI wrote:@mwekez@ji
Most term loans are repayable in monthly instalments, hence, I do not understand where you get the Kes 149,342?
Anyway, true MOST banks will never loose money in a lending arrangement, but if you're keen enough, you will actually pull this one off...I'm speaking from a real scenario as previously described where the loan is on reducing balance and FDR is on simple interest.. My example above seems complex for you so i choose to use your example where your profit in the loan arrangement is KES 24,605 after 36 months. If in your example you used your KES 1M therefore avoiding the borrowing and then opened a recurring deposit account where you deposit the KES 34,177 p.m., for 36 months, at an interest rate of 10% p.a., compounded annually, you would make a profit of KES 199,600 after the 36 months unlike the meager KES 24,605 in the loan arrangement. You may use this Recurring Deposit Calculator to confirm the hesabu >>> https://www.corpbanknet.com/Recurr_deposit_Calc.html. That takes me back to the question, why take a loan that is 100% secured by cash. Its just like giving the bank your money at a low interest rate then borrowing it at a high interest rate. Your monthly loan repayments gives the bank more money for onward lending making the bank richer. .... why not make yourself richer by atleast using the cash then opening a recurring deposit account as explained above Which bank offers the recurring deposit facility in Kenya? My Bank >>> http://www.imbank.com/accounts/recurring-deposits/ @Mwekezaji saidia,what is recurring deposit in simple terms please? Fancy way of saying that you save by effecting a standing order so that some amount is deducted from your regular account and credited to your savings account periodically.
|
|
|
Rank: Veteran Joined: 12/23/2010 Posts: 1,229
|
Oops. Just looked. Looks like its more than just saving through a standing order. The interest rate is fixed depending on saving period and is better than what you'd get from a regular savings account.
|
|
|
Wazua
»
Investor
»
Bonds
»
FIXED DEPOSIT TERMS
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|