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Highest interest rate - Savings Account
- Thread starter Mogul
- Start date
- Replies 33
- Views 4K
kjs
TF Premier
Yeah !! debt mutual fund more or less offer 5-7% which the Autosweep can offer . ICICI bank has Money multiplier FD which you can open in multiple of 5k & when ever account balance goes less than 15k that FD will be broken to save you from AMB maintenance charges , at any point of time its always best to have 20-30k at least in your account as cash as even mutual funds take 3 4 working days to get that money in ur account. I have came across personal emergency situations where cash in account was the only option that I could use.
Mogul
TF Buzz
i totally accept thi range. yes 30k should be available in cash.
So basically 30k won't work for auto sweep and that is why I look into highly rewarding savings account
How to open account or fd in unity small finance bank. There is no app and no branch?
Batmanbaba
TF Legend
Why to open account in Vijay mallya type banks.....
8.5% interest on 180 day fd. Amounts upto 5 lakh are secured
Even Savings interest is good.
Visit branch
They don't have any net banking, phone banking app nor they have launched any debit card 🙂
bugmenot
TF Legend
Check at branches, here is the list
thekirang
TF Select
But Government introduced Financial Resolution and Deposit Insurance (FRDI) Bill in 2017 but not passed sighting massive opposition.
If it's passed in future, The existing DICGC Act will be repealed and DICGC will be closed.
*Please Read FRDI bill*
My take on small finance banks are.... it should be a calculated risk.....
even if these are covered under DICGC, you don't get the insured amount next day. If you keep 5L in say ABC bank which is giving 6/7% interest and you earn it for 2 years and then it goes bankrupt, you won't be getting the insurance money in 1/2 months..
As far as I have seen in previous scenarios, it will at least take minimum 1 year (can be 2 or more) which will make your effective interest lower than FDs and more or less equal to 2-2.5% which other banks give...
Also, need to remember that its not like you have nothing to loose as interest would be same as other banks..... you wont have access to those 5L until insurance payout happens (you never know when you might need that money)
I dont have any banking background and others might say my thinking is wrong and the possibility of happening is less, but its what my assumption is..
So, go with these banks if nothing big is going to happen in your life (marriage, buying house/car, etc where you need to shell out money) in next 4-5 years..... churn that interest as much as you can, but once you decide on something.. better move/diverse that amount to multiple banks
even if these are covered under DICGC, you don't get the insured amount next day. If you keep 5L in say ABC bank which is giving 6/7% interest and you earn it for 2 years and then it goes bankrupt, you won't be getting the insurance money in 1/2 months..
As far as I have seen in previous scenarios, it will at least take minimum 1 year (can be 2 or more) which will make your effective interest lower than FDs and more or less equal to 2-2.5% which other banks give...
Also, need to remember that its not like you have nothing to loose as interest would be same as other banks..... you wont have access to those 5L until insurance payout happens (you never know when you might need that money)
I dont have any banking background and others might say my thinking is wrong and the possibility of happening is less, but its what my assumption is..
So, go with these banks if nothing big is going to happen in your life (marriage, buying house/car, etc where you need to shell out money) in next 4-5 years..... churn that interest as much as you can, but once you decide on something.. better move/diverse that amount to multiple banks
kjs
TF Premier
True .. mentioned in one of the post ..in case one is bothered so much for intrest from FD better take divided stocks like coal India,ongc,rec etc but don't invest huge hard earned money in new aged banks just to minimise the risk.. i remember the pmc collapse my uncles 6L FD took more than 15 months to redeem
His effective interest was less than what he would have got in normal banks (as he didn't get any interest from RBI/DICGC/insurer after collapse) + he didn't had access to that amount for 15 months (good grace he didn't require that amount in 15 months)
There are many more cases like these which suggest not to put everything in it.... you may try with 1/2L max depending on your situation and salary but anything more than that is quite risky
kjs
TF Premier
Yes ..pmc now unity finance bank was giving 6.5 when all were giving 5..but that 1.5% is surely not worth the risk if u are someone whose family is dependent on you and you are loaded with emi's..
