Best savings bank account to park 5-10L(emergency fund)

[ankitfintech]

Hi,
I want to open a savings bank account to park my emergency funds(5-10L). Which is the best bank account to open for this reqmt?

I have recently opened a ICICI salary account. Earlier my salary account was in Citibank which has now become savings account. Plus I also have BoB savings account. Will be closing Citibank account once I open new savings bank account.

I am thinking to open a Axis Burgundy account primarily due to the Burgundy Debit Card and also LtF Axis Select(which I may try to convert to Magnus). Are there any other bank accounts which have similar or better features?

 

[Trust Me]

G

Btw, this is what I found on google:

The amount invested in the FD through the sweep-in facility can be withdrawn without breaking the fixed deposit. This way, you will not lose out on interest earned on the FD. However, if you choose to withdraw any amount, you will lose the interest earned on the amount withdrawn. The banks or NBFCs will not charge any penalties for withdrawing the swept-in amount from the fixed deposit.

Google is not always your friend!

Just think about it, -- why would anyone ever opt for sweep-in if they can't partially withdraw money when needed without losing interest on it, so the net yield could potentially be even below the SB rate?! Just doesn't make any sense.

I have years of experience with partially breaking flexi FDs linked to my SB account without ever losing on any expected interest. Of course, I'd never opted for auto sweep-in because I was never convinced with its purported advantage.

 

[shashank08]

Could someone give a clarity that interest earned on sweep-in FD taxed as per tax slab or 10k savings limit?

It is as per tax slab.. as it is interest earned from FD not from savings account

 

[shashank08]

Open Kotak 811 Full KYC account. Active ActivMoney feature by visiting branch or Calling CC. ActivMoney is Sweeping facility where money above certain threshold converted into FD of 180 days. In kotak you'll earn 7% for 180 days FD. Also no penalty for premature withdrawal.

Does auto-fd opened via activmoney counted for AMB?
Like if someone have 100000 in activmoney FD and 25000 in account as threshold.. then will monthly average balance be 125000 or 25000?

 

[rp0703]

Does auto-fd opened via activmoney counted for AMB?
Like if someone have 100000 in activmoney FD and 25000 in account as threshold.. then will monthly average balance be 125000 or 25000?

Don't know, only customer care can tell.

 

[Trust Me]

Does auto-fd opened via activmoney counted for AMB?
Like if someone have 100000 in activmoney FD and 25000 in account as threshold.. then will monthly average balance be 125000 or 25000?

MAB relates to the SB account only. As such, the money moved out of SB into an FD won't be considered towards MAB calculation. However, the total amount (125000) will be counted as part of the TRV (Total Relationship Value).

 

[CARDBITRAGE]

I have a suggestion for the OP. Yesterday, I was reallocating some of my father's funds to different banks as he is retired and wishes to enjoy a peaceful life without the headaches associated with other forms of investments.

With IndusInd, you can create a FD, and if you break it anytime, you won't have to pay any penalty on the interest. I can confirm this because we did it yesterday for my father. He wanted to change the payout, and even though the bank employee said it might take a few hours to a day, it only took one hour for the amount to be returned to my father's account.

You can also try this option, which a RM from Bandhan Bank suggested to my father. Saucy also recommended it. You can split your amount, creating multiple FDs. In case of an emergency, if you break one FD, the others will still be earning interest. Among these three banks, IndusInd, RBL, and Bandhan, you can consider IndusInd. As I mentioned earlier, they don't charge any penalties if you break your FD anytime. Additionally, all three banks offer good FD rates.

Really? My BM and RM told me that IndusInd just recently started levying a 1% penalty on premature withdrawal of FDs.

 

[Trust Me]

Really? My BM and RM told me that IndusInd just recently started levying a 1% penalty on prematurely withdrawal of FDs.

That penalty clause has been there in their FD T&C for years! So is it the case that they used to informally waive off the penalty so far, and won't anymore?

 

[CARDBITRAGE]

That penalty clause has been there in their FD T&C for years! So is it the case that they used to informally waive off the penalty so far, and won't anymore?

This is what they told me in May'23 when I opened my account with them. So I guess they won't waive the 1% penalty now.

 

[4uziaul]

Really? My BM and RM told me that IndusInd just recently started levying a 1% penalty on prematurely withdrawal of FDs.

I'm not sure if they have implemented it recently, but last month we didn't incur any penalties for breaking our FD prematurely. I believe it's up to their discretion whether they choose to waive the penalty or not.

 

[gowthamv]

I'm not sure if they have implemented it recently, but last month we didn't incur any penalties for breaking our FD prematurely. I believe it's up to their discretion whether they choose to waive the penalty or not.

I too thought of opening a IndusInd FD. But when I checked their site, they had mentioned about penalty for breaking FD

 

[4uziaul]

I too thought of opening a IndusInd FD. But when I checked their site, they had mentioned about penalty for breaking FD

I saw that, but as I mentioned, they didn't charge anything. It's probably up to them whether they wish to waive the penalty or not. I think you should discuss this with them before opening an FD with your branch.