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Highest interest rate - Savings Account
- Thread starter Mogul
- Start date
- Replies 33
- Views 4K
Au and equitas are also giving good interest rates
Mogul
TF Buzz
But, Unity Small Finance Bank Limited is the only bank which offers 6% rate of interest even for a saving account balance less than 1 lakhs.
Equitas for your reference
AU for your reference
If you can't get Unity savings account because of unavailability, try Fincare Small Finance Bank Limited.
They have quarterly interest payout
Are SFBs covered under DICGC 5 lakh insurance?
Unity was earlier PMC which got bankrupt. How safe is it to deposit in unity and fincare @Batmanbaba @Abhishek012 @TechnoFino
Batmanbaba
TF Legend
Fincare and au are safe.... Unity... No good vibes
I have a account with them
They don't even have app or netbanking yet.
No debit card as well
Even RBL gives decent saving interest rate.
< 1 lakh - 4.25%
1 lakh to 10 - 5.5%
10 lakh to something - 6%
I normally keep < 5 lakh in savings account which is covered under DGIC.
Gau₹av
TF Legend
W
So which top 10 banks give auto sweep and what are their threshold limits for auto sweep in, sweep out? I couldn't find any proper info on the web.
kjs
TF Premier
From my knowledge sbi,bob,hdfc ,axis ,icici does provide
Gau₹av
TF Legend
Last time I researched them: SBI's auto sweep was broken. For two of my accounts, while it got turned on, amount doesn't reliably go for sweep out above certain threshold despite sufficient balance. HDFC calls it Money Maximizer but they have set the threshold for sweep out to a high amount like 1,25,000 or something so you get lower interest on balance below it. ICICI, I think they stopped auto sweep out, now you need to manually contact them to create a linked FD and only sweep in is "auto" when it gets broken. Axis is a cheater bank so no idea, I run away from them. BOB may have it though. Any one else's experiences with auto sweep are welcome. 🙂
See,
According to me auto sweep is only beneficial for 0 balance accounts.
I'll explain you with example:
Let's consider whenever the balance in the savings account goes above 50k the balance above 50k automatically get converted into an FD.
Thus if you deposit 2L into your account 50k remains in the savings account and the rest 1.5L gets converted into an FD.
Now if you make a payment of 1L then 50k from savings account will be utilised and 50k will be withdrawn from the FD. Thus your payment of 1L was made and now there's remaining 1L in savings account in form of FD.
The problem starts now, as you made a payment of 1L the whole 50k from savings account was utilised along with 50k from FD.
Now considering the savings max account in HDFC which has mab of 25k you account would now start attracting non maintenance charges as you savings account balance is zero.
And the FD for auto sweep will be liquidated only for processing the payment of amount more than the savings account has, not to compensate with the savings balance falling below the required mab which in this case is 25k.
Gau₹av
TF Legend
Currently auto sweep is on for my Kotak 811 (0-balance) and Everyday Savings accounts (MAB 20K) with different thresholds for both. For 811, it's 20K and for ESA, it's 1 lakh. FD is made at 5.5% (current date for 180 days). No penalty imposed upon breaking. To activate it, I had to call Kotak customer care who flat out denied it even exists for 811 account, filed grievance, 811 team overrode them and turned it on. It is only for full KYC 811 accounts.
iAmPm
TF Premier
This is not the case with axis at least I can confirm. And shouldn't be the case for any bank. e.g. Axis asks you threshold if you chose 50k, then it will liquidate necessary amount from FD to maintain 50k in saving account after every transaction. In short, saving account will always have the balance of the threshold you chose (or lesser than that if balance is lesser than threshold).
My suggestion is to go to RBI direct website. You can buy T-bills for less than 1 year duration with sovereign guarantee and similar to better rates than FD of big banks in current scenario. This is better than going with the small finance banks which still carry solvency risk.
kjs
TF Premier
Ideally it should compensate for the required mab as well .. Just check with HDFC once. ICICI operates a little different way . They have something called as Money multiplier(in Multiples of 5k) which you can do it yourself & thats certainly a good option as well .From what I know in Money multiplier when ever that balance goes less than 15k your FD breaks automatically. The money multiplier is done manually so based on the avalaible balance we can decide.
Mogul
TF Buzz
the auto sweep option in general is applied only after specified limits with FD rates. which gives minimal final gain.
I would suggest not to have more money in savings account. instead I will suggest you to push your emergency funds in non volatile debt mutual fund and use credit card for expenses.
when you have lower money it's already covered by government law.
Yeah, i might have to consider your idea of having funds in shares of banks.
