Bank account with good Savings interest

[22sumit]

I need to park some emergency funds ranging from 3-4 L but not sure of which bank will provide best interest rate on savings account.
I already have HDFC salary acct, ICICI and IDFC Classic accounts but the interest isn' that good.

Any premium LTF cc would be icing on the cake but not mandatorily.
Please suggest.

 

[infinia_finally]

I need to park some emergency funds ranging from 3-4 L but not sure of which bank will provide best interest rate on savings account.
I already have HDFC salary acct, ICICI and IDFC Classic accounts but the interest isn' that good.

Any premium LTF cc would be icing on the cake but not mandatorily.
Please suggest.

You should park emergency funds in overnight or liquid mutual funds.

 

[22sumit]

You should park emergency funds in overnight or liquid mutual funds.

Could you suggest some.

 

[Vasuki]

I need to park some emergency funds ranging from 3-4 L but not sure of which bank will provide best interest rate on savings account.
I already have HDFC salary acct, ICICI and IDFC Classic accounts but the interest isn' that good.

Any premium LTF cc would be icing on the cake but not mandatorily.
Please suggest.

R b l .aspire account

 

[22sumit]

R b l .aspire account

Would be helpful if you could point the benefits briefly. I'll dig the details myself later.

 

[Vasuki]

Would be helpful if you could point the benefits briefly. I'll dig the details myself later.

Intrest rate
Zero balance
Its a banking program
U can get rbl signature+ dc for cc bill pay . 1000 per .month is cashback limit (5900 card fees -5k Amazon voucher)

 

[infinia_finally]

Could you suggest some.

https://www.valueresearchonline.com/funds/selector/category/125/debt-liquid/?plan-type=direct&tab=snapshot&ret-period=1Y&end-type=1,2&star-rating=5,4,3,2,1,0

Don't go by rating. Check AUM > 5000cr
Check their portfolio. Should have majority SOV and rest AAA/A1+. Don't go with anything AA, since your goal is capital preservation

 

[sm9811911]

Could you suggest some.

Parag parik liquid

 

[22sumit]

Parag parik liquid

they have rating of 1 star in valuesearchonline

 

[infinia_finally]

they have rating of 1 star in valuesearchonline

VR ratings are useless. Parag parikh is one of the safest liquid funds, because it invests highest in govt securities, so it's returns are lowest in category. VR ratings just based on IRR. I personally use HDFC liquid fund though, which is a balance.

 

[SSV]

I need to park some emergency funds ranging from 3-4 L but not sure of which bank will provide best interest rate on savings account.
I already have HDFC salary acct, ICICI and IDFC Classic accounts but the interest isn' that good.

Any premium LTF cc would be icing on the cake but not mandatorily.
Please suggest.

You may already be aware that , by increasing your SB balance to 5L , you get 7% return in your IDFC SB account .. right??

 

[22sumit]

You may already be aware that , by increasing your SB balnce to 5L , you get 7% return in your IDFC SB account .. right??

Oh is it?
What if I withdraw some funds later, making my balance to be <5L.
I'm aware that HDFC automatically upgrade my account to imperia or preffered depending on acct balance. Does same thing happen with IDFC or Will they charge any penalty ?

 

[SSV]

Oh is it?
What if I withdraw some funds later, making my balance to be <5L.
I'm aware that HDFC automatically upgrade my account to imperia or preffered depending on acct balance. Does same thing happen with IDFC or Will they charge any penalty ?

No penalty.. Interest on savings account balances will be calculated at the following rates...

 

[Vasuki]

You may already be aware that , by increasing your SB balnce to 5L , you get 7% return in your IDFC SB account .. right??

Caviet is its not flat 7% . So better get fd

 

[SSV]

Caviet is its not flat 7% . So better get fd

Correct .. it is only for the progressive balances.. my bad.. I didn't see that..

but for 1L to 5L , it is 4% which is definitley more than other Banks..

 

[AshishR]

i believe liquid funds will give 5-7% returns with charges (expense ratio + exit load)
where rbl bank gives 7.5% interest rates above 1L (25L bal required)

so why go for liquid funds??

 

[SSV]

Oh is it?
What if I withdraw some funds later, making my balance to be <5L.
I'm aware that HDFC automatically upgrade my account to imperia or preffered depending on acct balance. Does same thing happen with IDFC or Will they charge any penalty ?

Caviet is its not flat 7% . So better get fd

For Comparision:

IndusInd:


RBL:



IDFC :

 

[SSV]

i believe liquid funds will give 5-7% returns with charges (expense ratio + exit load)
where rbl bank gives 7.5% interest rates above 1L (no if or butts)

so why go for liquid funds??

It is not 7.5% for all the money after 1L ..

 

[_ayush]

One way would be to have sweep in fd. In case you need money, you dont need to break the fd, the transaction will go through. In case you dont add the amount back in your account by eod, the fd gets liquidated automatically.
I am using it for emergency fund. One thing I did was instead of one big fd, I made fd of 25k, 50k, 75k and 1L. This way in case I am unable to add the amount back by eod, the fd closest to the amount gets broken thus saving big interest penalty.

 

[_ayush]

Though one benefit of keeping in savings account is you dont have to pay tax on interest upto 10k. So do your calculations accordingly.

Also the reason, I don't prefer liquid funds for emergency fund is because if something happens to me, atleast my family can use my account/debit card for funds instead of liquidating the funds which would be a bit more difficult.