IDFC savings interest rate reduction

[KGSIPO]

IDFC First bank has reduced the intrest rate for savings account of 1 to 5 lakhs. Way of filtering low value account customers. Only want HNI Customers.

 

[Tejo]

7.25% hai 5l+ par

But no use, no one interested

 

[BVCBVC is verified member.]

IDFC First bank has reduced the intrest rate for savings account of 1 to 5 lakhs. Way of filtering low value account customers. Only want HNI Customers.
View attachment 61144

Please upload images removing the black portion. It's consuming lot of page space while viewing.

 

[SonyTom]

7.25% hai 5l+ par

But no use, no one interested

Yes. Previously, it was 7% for 5-10 lakhs and 7.25% for more than 10 lakhs. So beneficial for those keeping more than 5 lakhs

Note: Its always better to keep money in FD rather than savings account

 

[BVCBVC is verified member.]

Note: Its always better to keep money in FD rather than savings account

Any particular reason?? Savings account have the flexibility of withdrawal whenever needed and IDFC credits interest on monthly basis which will have compounding effect right?

 

[subham23]

Less than 5 Lakh and more than 200 Cr has almost same interest rate 🙂

 

[SonyTom]

Any particular reason?? Savings account have the flexibility of withdrawal whenever needed and IDFC credits interest on monthly basis which will have compounding effect right?

I will tell my situation.

One month back put 1 lakh in SBI 47 day deposit (5.5% interest) eventhough I knew I may need it before 47 days are completed. I had to break it at 30 days. But still got 3% interest. Instead of putting FD, If I held it in IDFC savings account, I would have got 3.5% (now reduced to 3%). But consider the scenario where I didnt need that amount at 30 days and was able to push till 47 days before withdrawing that amounnt, I would have got 5.5%.

There is no issue in liquidity with FD. Just click on break FD and you will get the money in Savings account instantly

 

[BVCBVC is verified member.]

I will tell my situation.

One month back put 1 lakh in SBI 47 day deposit (5.5% interest) eventhough I knew I may need it before 47 days are completed. I had to break it at 30 days. But still got 3% interest. Instead of putting FD, If I held it in IDFC savings account, I would have got 3.5% (now reduced to 3%). But consider the scenario where I didnt need that amount at 30 days and was able to push till 47 days before withdrawing that amounnt, I would have got 5.5%.

There is no issue in liquidity with FD. Just click on break FD and you will get the money in Savings account instantly

Yes, you can break FD with some penalty or reduction in percentage with Insurance too. But I prefer having in IDFC Savings because Avg balance day wise and interest credited on monthly basis. Yes every use case and individual preference will be different. 👍

 

[SonyTom]

In the situation where you have 10 lakh and dont want to lock it in FD, putting it in IDFC Savings will result in massive interest loss on the amount under 5 lakhs (around 2.5%).

But it all depends on the turnover. If one is very sure than the money will be needed soon like maybe within 1 month, then keeping in savings is ok. Because of the interest payout monthly with the compounding effect. Even in this situation, Indusind savings account is an option if holding less than 5 lakhs.

Indusind: Upto 1 lakh- 3.5%, 1 to 5 lakhs- 5%. But interest payout quarterly.

But some people keep large amounts in savings accounts as emergency funds. I wouldnt advise it.

 

[Aniket]

Any particular reason?? Savings account have the flexibility of withdrawal whenever needed and IDFC credits interest on monthly basis which will have compounding effect right?

Direct FD and FD through Auto Sweep facility can also be withdrawn at anytime when needed but may attract some % of charges subject to bank's policy.

FD offers high interest rate in comparison to SA. Though having compounding effect, it usually can't match with the FD rate of interest in real sense.

Effective rate of Interest and probability of premature withdrawal, when only charges are >, play important role in decision making.

 

[KGSIPO]

Please upload images removing the black portion. It's consuming lot of page space while viewing.

Went to edit but not able to delete the attachment so that new attachment without black portion can be added

 

[BVCBVC is verified member.]

Went to edit but not able to delete the attachment so that new attachment without black portion can be added

From next time..

 

[msankadi]

W

Yes. Previously, it was 7% for 5-10 lakhs and 7.25% for more than 10 lakhs. So beneficial for those keeping more than 5 lakhs

Note: Its always better to keep money in FD rather than savings account

Why to keep in savings or fd? Instead better to keep in liquid fund or if willing to take little more risk (for lesser tax burden) arbitrage mutual fund

 

[Abhisek]

Sadly they also reduced interest rate for FDs..now highest interest rate is 7.75. It used to be 7.9 for one period. At the time when baks are facing deposit crunch, these moves seems counter productive.

 

[SonyTom]

W

Why to keep in savings or fd? Instead better to keep in liquid fund or if willing to take little more risk (for lesser tax burden) arbitrage mutual fund

Depends on individual preference

 

[house_of_cards]

I will tell my situation.

One month back put 1 lakh in SBI 47 day deposit (5.5% interest) eventhough I knew I may need it before 47 days are completed. I had to break it at 30 days. But still got 3% interest. Instead of putting FD, If I held it in IDFC savings account, I would have got 3.5% (now reduced to 3%). But consider the scenario where I didnt need that amount at 30 days and was able to push till 47 days before withdrawing that amounnt, I would have got 5.5%.

There is no issue in liquidity with FD. Just click on break FD and you will get the money in Savings account instantly

You can is use a liquid or overnight mutual fund, you'll get 6%+

 

[KGSIPO]

You can is use a liquid or overnight mutual fund, you'll get 6%+

What is overnight mutual fund

 

[BVCBVC is verified member.]

You can is use a liquid or overnight mutual fund, you'll get 6%+

Got to know something new. Thank you.

 

[BVCBVC is verified member.]

What is overnight mutual fund

Got it from here.

https://groww.inovernight-funds/