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.

 

[AshishR]

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

it gives 6% if bal is 10L
gives 7.5% if bal is 25L

so if u have 10L , u can easily get 6% in 9L and 4/25 for 1L

its better than liquid funds or overnight funds

 

[22sumit]

For Comparision:

IndusInd:
RBL:
IDFC :

Are all of these progressive interest rates on savings balance?

 

[SSV]

it gives 6% if bal is 10L
gives 7.5% if bal is 25L

so if u have 10L , u can easily get 6% in 9L and 4/25 for 1L

its better than liquid funds or overnight funds

For 10L , we will get 5.378 , to be exact.. which is still great in my opinion.

 

[SSV]

Are all of these progressive interest rates on savings balance?

Yes, these are all progressive rates..
out of all these for 5L, RBL is better.. for 10L - IDFC is better

For 5L ( for the entire 5L Balance) you get :
RBL - 5.25%
Indus - 4.7%
IDFC - 3.8%
as compared to 3% in all major Banks.



For 10L Balance( for the entire 10L Balance) you get:

RBL - 5.375%
Indus - 5.35%
IDFC - 5.4%

 

[AshishR]

Yes, these are all progressive rates..
out of all these for 5L, RBL is better.. for 10L - IDFC is better

For 5L ( for the entire 5L Balance) you get :
RBL - 5.25%
Indus - 4.7%
IDFC - 3.8%
as compared to 3% in all major Banks.



For 10L Balance( for the entire 10L Balance) you get:

RBL - 5.375%
Indus - 5.35%
IDFC - 5.4%

it doesnt work that way , rbl gives 6% on 9L if bal is 10L

read this https://www.rblbank.com/api/v1/doc/document/Saving Accounts/Revised_Savings_Interest_Rate.pdf

 

[vine]

For Comparision:

IndusInd:


RBL:



IDFC :

RBL is better till 5L.
from 5L to 9L, IndusInd/DBS/RBL/IDFC First are similar, very little difference.
From 10+, IDFC is slightly better. DBS/IndusInd/RBL are close behind.

 

[SSV]

it doesnt work that way , rbl gives 6% on 9L if bal is 10L

read this https://www.rblbank.com/api/v1/doc/document/Saving Accounts/Revised_Savings_Interest_Rate.pdf

If it doesn't work that way, please show me how it works...

Please see my screenshot in this post, I already took it from there only.. Upto 10L ( which includes 10L ) you get 5.5% ...

Please calculate for 10L balance ,how much interest you get?? as per the table you mentioned..



For Comparision:

IndusInd:


RBL:



IDFC :

 

[22sumit]

Yes, these are all progressive rates..
out of all these for 5L, RBL is better.. for 10L - IDFC is better

For 5L ( for the entire 5L Balance) you get :
RBL - 5.25%
Indus - 4.7%
IDFC - 3.8%
as compared to 3% in all major Banks.



For 10L Balance( for the entire 10L Balance) you get:

RBL - 5.375%
Indus - 5.35%
IDFC - 5.4%

Can't thank you enough.
Appreciation for summarizing in easy words.

 

[SSV]

DBS is better till 5L.
from 5L to 9L, IndusInd/RBL/IDFC First are same.
From 10+, IDFC is better. DBS/IndusInd is close.

For SB Balnace of 5L, for the entire 5L balance you get 4.1% from DBS as per this interest rates table from DBS website:..
I am not sure how this beats RBL and Indus with 5.25% and 4.7% respectively..

 

[vine]

For SB Balnace of 5L, for the entire 5L balance you get 4.1% from DBS as per this interest rates table from DBS website:.. I am not sure how this beats RBL and Indus with 5.25% and 4.7% respectively..

No. You are right. My excel formula mistake. RBL is better till 5L

 

[SSV]

it doesnt work that way , rbl gives 6% on 9L if bal is 10L

read this https://www.rblbank.com/api/v1/doc/document/Saving Accounts/Revised_Savings_Interest_Rate.pdf

For 10L SB balance , the interest calculation is like below as per their table...
If you think it is not correct , please update us how it is calculated:

 

[sourpai]

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.

What is the use of liquid funds now? With indexation benefit gone from last budget and taxability at regular slab? Isn't something like IDFC bank FD a better option at 7.5% interest rate?

 

[vine]

What is the use of liquid funds now? With indexation benefit gone from last budget and taxability at regular slab? Isn't something like IDFC bank FD a better option at 7.5% interest rate?

taxability is deferred until redemption, for liquid funds

 

[sourpai]

taxability is deferred until redemption, for liquid funds

Yes, but how does that matter? Net tax outflow is same right?

Infact if your salary increases and you change the bracket, all the redemptions will get taxed in new bracket

 

[vine]

Yes, but how does that matter? Net tax outflow is same right?

Infact if your salary increases and you change the bracket, all the redemptions will get taxed in new bracket

₹10 paid now is more valuable than ₹10 paid after 3-5-10 years later.

Anyway, it's not much of a difference for smaller amounts and if you are already in 30% tax bracket.

 

[sm9811911]

This post has gone haywire.
So, just trying to simplfy and giving my opinion for OP and others interested.. For emergency 1L keep in bank account - forget interest. Keep 3-5 L in liquid funds - good interest and redemption on request on T+1-3 days assuming weekend. Post that you invest (FD,stock etc basis risk profile).
- Amounts would vary depending on number of family members and other factors.
- Don't mix emergency funds with fd or stock.
- Some small finance bank like unity will give better returns on saving balance than liquid funds but depends on risk profile (I don't keep due to chances of fraud, other risks).

 

[infinia_finally]

What is the use of liquid funds now? With indexation benefit gone from last budget and taxability at regular slab? Isn't something like IDFC bank FD a better option at 7.5% interest rate?

taxability is deferred until redemption, for liquid funds

Also, TDS (quarterly) on FDs eats into IRR.

But yes, difference is miniscule.

Banks can change interest rates pretty fast. Liquid funds pretty much tracks benchmark lending rate.

Since now we are at peak interest rates, if we want to lock them for long term, yes FDs is the best option.

But since the thread was for emergency funds, I mentioned liquid funds.

 

[infinia_finally]

This post has gone haywire.
So, just trying to simplfy and giving my opinion for OP and others interested.. For emergency 1L keep in bank account - forget interest. Keep 3-5 L in liquid funds - good interest and redemption on request on T+1-3 days assuming weekend. Post that you invest (FD,stock etc basis risk profile).
- Amounts would vary depending on number of family members and other factors.
- Don't mix emergency funds with fd or stock.
- Some small finance bank like unity will give better returns on saving balance than liquid funds but depends on risk profile (I don't keep due to chances of fraud, other risks).

💯
This is exactly what I do.

 

[WinSuperb7251]

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.

Unity small finance bank

 

[mojo_jojo123]

RBL is okay okay