FDs and recurring deposits are investors favorite

As there has been widespread fear in the market about melting down of American economy, uncertainty in real estate business and fluctuating stock indices, investors are keeping their investments safe with banks in the form of fixed deposits and recurring deposits. In the past couple of weeks the city banks have seen a growth of around 20 per cent in fixed and recurring deposits.

"Fluctuating market definitely adds to the apprehension of investors as a result people look for safe investments which normally come from bank deposits. Besides, after the recent fall in the stock market we have been witnessing around 20-25 per cent rise regarding fixed deposit inquiries," informed a banker from Nerul on condition of anonymity.

In fact investors also approve for channel zing the funds into bank-deposits as better option seeing the condition of real estate business, on a rollercoaster ride and stock market unpredictable.

"For investing in real estate one requires a huge sum as well it demands lot of paper work, while security market these days is highly unpredictable. Therefore, it's safe to invest with banks for a nominal interest as during such time mutual funds are equally risky," said Anuradha Pillai, a Vashi resident.

In addition to this from major money deposits, investors are also setting apart their regular monthly savings in the form of recurring deposits. "High-end profits are always acceptable but one also needs to check security part of it. Often profit is equivalent to risk factor involved in the investments. Hence, along with major investments for bigger returns, maintaining small monthly saving although for low interest rate is advisable," said Shruti Desai, a Nerul- resident and asst finance manager with a reputed bank. Currently, most of the banks are recording a major rush for short-term fixed deposits instead of long terms.

"More than half of the recent fixed deposits are for a duration of 1-2 years. The sudden fall in the market must have wobbled the investors as a result for a temporary period they must be storing their present savings with banks and would divert it again once the market seems stabilise," added banker.