Artifically inflating NRV using overdraft

[saucy]

What would happen if i create a FD in this account, avail overdraft, create FD in other bank, avail overdraft and then create another FD in the first bank... And the cycle repeats?

Essentially i could artifically boost my NRV, at the sacrifice of the interest that i may gain from the FD

 

[CARDBITRAGE]

View attachment 20873

What would happen if i create a FD in this account, avail overdraft, create FD in other bank, avail overdraft and then create another FD in the first bank... And the cycle repeats?

Essentially i could artifically boost my NRV, at the sacrifice of the interest that i may gain from the FD

You could do that, but you would lose a lot of money as interest. The interest is usually 2-3% over the FD rate. But I don't think you would get benefits that would compensate for that interest cost. Also, by doing this you would also be increasing your income(interest on FD) and artificially inflating your income to a higher bracket and end up paying higher taxes. All in all, this is not a good idea.