In an otherwise well written article, the rate of interest indicated against co op banks is wrongly given as 9 to 11 %. I do not knbow of any bank offering these rates. the max rate offered is 9 % that too for senoir citizens and mostly for 3 to 5 years period ( not 2 to 3 years as mentioned ). secondly the advice that one should avoid Co op Banks is generally right, it should be with two provisos ie one --deposits upto RTs 100,000 per depositor for each Bank are covered under Deposit Insurance Scheme and secondly there are quite q few Good and Sound Co op Banks at least in Maharashtra. to name a few - Saraswat, Shamrao Vithal, Cosoms, NKGSB,Abhudaya, CKP, Greater Mumbai, Jankalyan, Thane Janata, Kalyan Janata, Suvarna Sahakari, etc
As farr as I know, tax on interest earned on FDs is 10.2 % (for below 10 Lacs) and 11.2 % (for above 10 Lacs). Also tax is deducted when interest payable or reinvested per customer, per branch, exceeds Rs 5,000 in a financial year.
But i nthe article it is written that interest is added to income and taxed with the relevent tax bracket.
The article says to stay away from coop banks.It is a generalised statement.There are good to very good coop banks in the country like saraswat &shamraorao vithal etc.these banks are rated high by the R.B.I.
