Latest news with #NationalSavingsCertificates
Business Standard
16-06-2025
- Business
- Business Standard
Algoquant Fintech incorporates WOS, Algoquant Global Securities
Algoquant Fintech (AFL) announced that it has incorporated wholly owned subsidiary (WOS) company with the name of Algoquant Global Securities (AGSPL). The Ministry of Corporate Affairs, Government of India, issued the Certificate of Incorporation on 13 June 2025. AGSPL will operate in the stock broking sector and has been formed to undertake activities as a stock broker, including dealing in shares, stocks, debentures, bonds, government securities, units of Unit Trust of India, National Savings Certificates, and other securities. The subsidiary has been incorporated with an authorised share capital of Rs 10 lakh, divided into 1,00,000 equity shares of Rs 10 each. The entire paid-up share capital will be held by Algoquant Fintech, making AGSPL its wholly owned subsidiary and a related party. AGSPL is yet to commence its business operations. As the promoter company, AFL will hold 100% equity in AGSPL upon allotment of shares. The official announcement was made on Friday, 13 June 2025, after market hours. Algoquant Fintech is engaged in the business of trading in financial instruments The companys consolidated net profit dropped 90.1% to Rs 0.61 crore on a 2.9% decline in total income to Rs 54.02 crore in Q4 FY25 over Q4 FY24. The counter slipped 2.16% to Rs 1,015 on the BSE.
News18
12-06-2025
- Business
- News18
RBI's Repo Rate Cut: What It Means For Your Fixed Deposit Returns And Tax Outgo
Last Updated: Banks have started cutting FD rates, reducing returns for retirees and conservative investors who rely on them The Reserve Bank of India's recent decision to reduce the repo rate by 50 basis points to 5.50% has created a ripple effect across the financial ecosystem. While the move is aimed at reviving economic momentum amid easing inflation, it carries notable implications for both borrowers and savers, particularly in terms of taxation on interest income. What This Means for Borrowers Home loan holders and other borrowers on floating interest rates will be among the immediate beneficiaries. A lower repo rate typically leads to reduced lending rates, meaning lower EMIs. For instance, a Rs 50 lakh home loan with a tenure of 20 years may see EMIs drop by approximately Rs 1,500 per month, offering relief to households juggling multiple expenses. With a cumulative deduction of 100 basis points in the repo rate in 2025, banks have been steadily decreasing the fixed deposit interest rates. According to SBI research fixed deposit rates have declined by 30 to 70 basis points since February 2025. Short and medium term fixed deposits are likely to witness the most serious rate cuts. For example, a 1 year fixed deposit rate dropping from 7% to 6.5% would result in Rs 5,000 less annual interest on a Rs 10 lakh deposit. So, the situation is less favourable for fixed deposit (FD) investors. Banks have already begun lowering FD interest rates, which means that savers, especially retirees and conservative investors who depend on FDs, may earn less on their investments, according to CA Shefali Mundra of ClearTax. 'A 6% FD for someone in the 30% tax bracket effectively yields just 4.2%—barely ahead of inflation. With rate cuts, this post-tax return may drop further," says Mundra. While the repo rate cut itself doesn't alter tax laws, its effect on interest income is undeniable. As deposit rates fall, so do the absolute interest earnings, which in turn reduces the tax liability in numerical terms. However, the relative tax burden increases, as a larger portion of the now-reduced interest income goes towards taxes. Smart Strategies for FD Investors in a Falling Interest Rate Scenario As interest rates continue to decline, fixed deposit (FD) investors may need to rethink their approach to safeguard returns. Here are some strategies to consider: 1. Ladder Your FDs: Spread your investments across FDs with different maturities. This helps manage reinvestment risk and ensures liquidity at regular intervals. 2. Explore Government-Backed Savings Schemes: Consider alternatives like the Senior Citizen Savings Scheme (SCSS) or National Savings Certificates (NSC), which often offer better returns and are less influenced by repo rate changes. 3. Look into Short-Term Corporate Bonds: Top-rated corporate bonds with 2–3 year tenures may offer higher yields than traditional FDs, with relatively manageable risk. 4. Evaluate Hybrid Mutual Funds: Hybrid funds, which invest in a mix of debt and equity, can provide better returns than FDs while keeping risk moderate. 5. Keep an Eye on Inflation: With CPI inflation estimated at 3.7% for FY26, real returns from FDs may be negligible. Diversifying into equity mutual funds could help preserve purchasing power over the long term. 'The key is diversification and tax efficiency. Investors must weigh not just returns, but also the post-tax impact," adds CA Mundra. tags : Fixed deposit Location : New Delhi, India, India First Published: June 12, 2025, 08:03 IST News business » tax RBI's Repo Rate Cut: What It Means For Your Fixed Deposit Returns And Tax Outgo
Mint
06-06-2025
- Business
- Mint
RBI repo rate cut by 50 bps: What fixed deposit investors should do now
The Reserve Bank of India has reduced the repo rate by 50 basis points to 5.5% on June 6, 2025. This marks the third consecutive cut this year. This move aims to stimulate economic growth amid easing inflation, thus bringing challenges for fixed deposit (FD) investors as banks are expected to lower FD interest rates in a response to this move. Amit Bansal, Founder, BharatLoan, believes that, "The RBI's bold move to cut the repo rate by 50 bps to 5.5% and slash the CRR by 100 bps is a decisive step toward easing systemic liquidity. With ₹ 2.5 lakh crore expected to be released through the CRR reduction, this injection will significantly reduce the cost of funds for NBFCs like ours.' He further added that, 'Combined with the RBI's revised FY26 inflation forecast of 3.7%, well below its 4% target, this policy signals a pro-growth shift, offering room to extend affordable credit to India's large salaried middle class, especially at a time when urban demand is rebounding and investment activity is picking up.' With a cumulative deduction of 100 basis points in the repo rate in 2025, banks have been steadily decreasing the fixed deposit interest rates. According to SBI research fixed deposit rates have declined by 30 to 70 basis points since February 2025. Short and medium term fixed deposits are likely to witness the most serious rate cuts. For example a 1 year fixed deposit rate dropping from 7% to 6.5% would result in ₹ 5,000 less annual interest on a ₹ 10 lakh deposit. In a rapidly declining interest rate environment, fixed deposit investors can consider the following methods: Laddering FDs : Stagger your investments across various maturities to manage reinvestment risks and maintain proper liquidity. : Stagger your investments across various maturities to manage reinvestment risks and maintain proper liquidity. Exploring small savings schemes : Government sponsored schemes such as Senior Citizen Scheme or National Savings Certificates often offer higher returns and are less sensitive to repo rate changes. : Government sponsored schemes such as Senior Citizen Scheme or National Savings Certificates often offer higher returns and are less sensitive to repo rate changes. Considering short-term corporate bonds : High ranked 2-3 year corporate bonds may also assist in providing better yields compared to traditional FDs. : High ranked 2-3 year corporate bonds may also assist in providing better yields compared to traditional FDs. Evaluating hybrid mutual funds : These funds invest in a mix of debt and equity. This has the potential to offer higher returns with moderate risk. : These funds invest in a mix of debt and equity. This has the potential to offer higher returns with moderate risk. Monitoring inflation trends: With CPI inflation projected at 3.7% for FY26, real returns from FDs may be minimal, emphasizing the need for diversified investment strategies. Investors can also look to move towards equity mutual funds in such a scenario. Hence, the RBI's recent rate cuts underline the importance for fixed deposit investors to reassess their investment goals and strategies. Given traditional fixed deposits provide safety, their diminishing returns in a low interest rate environment necessitate exploring alternative investment avenues. Diversification of investments and staying informed about economic indicators can provide investors the path to navigate this challenging landscape. Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to consult a certified financial advisor before making any investment decisions.
