In which bank should I open an FD of 5-10 lakh?

[card_explorer]

I want to open an FD of 10L.

I'm not sure which bank I should go with, I want to see which bank gives good perks if you put this much money with them, but most perks don't seem to be that useful for me or the requirements seem to be too high.

Axis burgundy seems to be the best one, but I'll only barely meet the 10L average balance requirement (unless I shift to axis bank entirely).

I have the following cards right now:

1. Axis vistara infinite with limit of 5.8L
2. ICICI Amazon pay with limit of 7.4L
3. ICICI Coral with limit of 7.4L
4. Slice card with limit of 1L (don't use it anymore)

Any recommendations about the bank I can go with whose perks can compliment my cards. If that matters, my annual spends excluding rent should be at least ~6L-7L.

 

[SiddharthR]

@Wealth is my birth right! @phani11
As we know, FD can be connected with Savings account to avoid shortfall & breaks automatically in case you'd like to transfer amount from one bank to another (Like Auto Sweep Facility),
Hence, won't both of you's concerns are nullified regarding time taken for money transferring from FD to another bank in case of emergency?

 

[Rahul Gupta]

Guys anyone know how much FD balance is safe for someone who is not filling any ITR?

 

[Chaitanya-a]

Guys anyone know how much FD balance is safe for someone who is not filling any ITR?

Your overall interest shouldn't exceed 3L in a year. Like any kind of gain (combined) shouldn't exceed 3L in a year.

 

[phani11]

@Wealth is my birth right! @phani11
As we know, FD can be connected with Savings account to avoid shortfall & breaks automatically in case you'd like to transfer amount from one bank to another (Like Auto Sweep Facility),
Hence, won't both of you's concerns are nullified regarding time taken for money transferring from FD to another bank in case of emergency?

1st this guy didn't mention fd term,
2nd Auto sweep is on short term periods not on long terms.
3rd It is always easy to open account online and even video kyc but did you ever try to close the account ? Bro, they will ask you to visit branch, write an application and so on..
Same happens with Breaking FD/Closing CC.
Atleast for 10 lacs, I believe this can happen.

My answers were my opinions based on my own relatives and family incidents.

 

[Lakshya Mahani]

Anyone, kindly explain that 40k amount exempted from TDS rule, if a person is not filing ITR?
Means what should be the ideal fd amount, for which the returns received are exempted from TDS/Tax?

 

[phani11]

Anyone, kindly explain that 40k amount exempted from TDS rule, if a person is not filing ITR?
Means what should be the ideal fd amount, for which the returns received are exempted from TDS/Tax?

40k interest not the whole amount.

If you did fd of x amount and y is the interest you earned in a year, that y should not be greater than 40k.

5 lacs fd at rate of 6% = 30,000 interest earned.. it is less than 40k. So tds will not deduct. But if you 20 lacs fd for 6 months and interest is approx 60k than tds will be deducted. Because interest earned is greater than 40k limit.

 

[EINSTEIN]

LTF? 🫣

Maybe if FD in greater than 50L

 

[Rahul Gupta]

R

Your overall interest shouldn't exceed 3L in a year. Like any kind of gain (combined) shouldn't exceed 3L in a year.

Really? This means we can make more than 20 lac fd without any income tax issues.

 

[EINSTEIN]

Really? This means we can make more than 20 lac fd without any income tax issues.

If the money is from tax exempt legitimate sources like inheritance or gift from relatives etc you can make FD of thousands of crores. But if it is not then 🚨

 

[Chaitanya-a]

If the money is from tax exempt legitimate sources like inheritance or gift from relatives etc you can make FD of thousands of crores. But if it is not then 🚨

Agreed. Like parental income which is already taxed.

 

[Lakshya Mahani]

40k interest not the whole amount.

If you did fd of x amount and y is the interest you earned in a year, that y should not be greater than 40k.

5 lacs fd at rate of 6% = 30,000 interest earned.. it is less than 40k. So tds will not deduct. But if you 20 lacs fd for 6 months and interest is approx 60k than tds will be deducted. Because interest earned is greater than 40k limit.

If i make an fd of 4 lakhs in idfc first bank for 3 years @7.75% interest, i get this result.
Maturity Date : 10 March 2026
Maturity Value : ₹ 5,03,579/-
Aggregate Interest Amount : ₹ 1,03,579/-
So now, will i be liable to pay TDS on whole interest component or it will be divided by 3 which will be equal to 34,526.33Rs on an average, yearly(Still less than 40k of interest annually)?

 

[phani11]

If i make an fd of 4 lakhs in idfc first bank for 3 years @7.75% interest, i get this result.
Maturity Date : 10 March 2026
Maturity Value : ₹ 5,03,579/-
Aggregate Interest Amount : ₹ 1,03,579/-
So now, will i be liable to pay TDS on whole interest component or it will be divided by 3 which will be equal to 34,526.33Rs on an average, yearly(Still less than 40k of interest annually)?

Yes, your interest of 1.03 lacs will not be in 3rd year... But1.03lacs/3 = 34.5k every year..so no tds deduction.

 

[Mr. Aman]

I want to open an FD of 10L.

I'm not sure which bank I should go with, I want to see which bank gives good perks if you put this much money with them, but most perks don't seem to be that useful for me or the requirements seem to be too high.

Axis burgundy seems to be the best one, but I'll only barely meet the 10L average balance requirement (unless I shift to axis bank entirely).

I have the following cards right now:

1. Axis vistara infinite with limit of 5.8L
2. ICICI Amazon pay with limit of 7.4L
3. ICICI Coral with limit of 7.4L
4. Slice card with limit of 1L (don't use it anymore)

Any recommendations about the bank I can go with whose perks can compliment my cards. If that matters, my annual spends excluding rent should be at least ~6L-7L.

the bank how give the best interest rate

 

[CARDBITRAGE]

You haven't mentioned, for how long do you want to put money in fd.
But I would never open fd of 10 lacs in any private bank for long time.

Don't go too behind, just last year yes Bank scam........ bro, people literally begging to branch that they have marriage of their daughter and they need money crying but no other option but to be silent.

Never put small perk over trust.

There are soo many banks who have HNI like axis burgundy, hdfc imperia etc.. I myself have HDFC Imperia account, but having account vs having fd is different ( salary account so I don't have to maintain 10 lacs , imperia given based on monthly salary credit)

In case , I hear anything about hdfc, I can quickly transfer whole amount to my other beneficiary account in a moment.

My mother is private teacher, she earns 15k per month and 10 years before 3-5k , she did fd/invested in sahara , who used to sponsor team india. She is still waiting for 70k rs of that time.

One thing is sure, even after 10/15/20/50 years later sbi will be there with the same shitty lazy staff but giving assurance that your money is safe.

My friend, it is not fair to just denigrate private banks. If you have been following the news lately, you can see that it is our beloved PSUs that are overexposed to most of the high-debt companies. This has been the case and will always be the case. But unlike PSU banks there is a much higher level of scrutiny that takes place in private banks before loans are approved. If you have a look at the DSIBs in India, you can see that 2 of the 3 banks are private, namely HDFC and ICICI. What does this imply you ask? If any one of the DSIBs fails in India, our whole economy falls apart. So hypothetically if that happens, the RBI will have to step in to save these banks. Also, the case with YES bank was different. The management got greedy with growth and started giving money to companies which they knew would likely not be able to pay them back. One by one their loan books started seeing red and then came the liquidity crisis. Sure there are some badly managed private firms, but it is up to us as consumers to make an informed decision on where to put our money. Just have a look at the history of NPAs of various banks in India. You'll come to understand where HDFC and ICICI stand.
Having said that, it is true that your money is comparatively safer with PSUs because if they fail, you'll see another merger and RBI will look the other way. All at the expense of us citizens.

 

[Wealth is my birth right!]

If i make an fd of 4 lakhs in idfc first bank for 3 years @7.75% interest, i get this result.
Maturity Date : 10 March 2026
Maturity Value : ₹ 5,03,579/-
Aggregate Interest Amount : ₹ 1,03,579/-
So now, will i be liable to pay TDS on whole interest component or it will be divided by 3 which will be equal to 34,526.33Rs on an average, yearly(Still less than 40k of interest annually)?

IMO tax liability on maturity FY

 

[Lakshya Mahani]

IMO tax liability on maturity FY

So will i be liable for TDS after 3 years on the whole interest i.e. 1.03 lakhs?

 

[CARDBITRAGE]

I want to open an FD of 10L.

I'm not sure which bank I should go with, I want to see which bank gives good perks if you put this much money with them, but most perks don't seem to be that useful for me or the requirements seem to be too high.

Axis burgundy seems to be the best one, but I'll only barely meet the 10L average balance requirement (unless I shift to axis bank entirely).

I have the following cards right now:

1. Axis vistara infinite with limit of 5.8L
2. ICICI Amazon pay with limit of 7.4L
3. ICICI Coral with limit of 7.4L
4. Slice card with limit of 1L (don't use it anymore)

Any recommendations about the bank I can go with whose perks can compliment my cards. If that matters, my annual spends excluding rent should be at least ~6L-7L.

Most banks would require you to put down upwards 30L in relationship value for HNI accounts. My suggestion is put 10L split equally between two banks that offer you the highest ROI on fds. My understanding is you need that kind of liquidity. If not, you are better off putting your money to work.

 

[Wealth is my birth right!]

So will i be liable for TDS after 3 years on the whole interest i.e. 1.03 lakhs?

Hopefully that will be the case
But no such personal experience so far

 

[phani11]

My friend, it is not fair to just denigrate private banks. If you have been following the news lately, you can see that it is our beloved PSUs that are overexposed to most of the high-debt companies. This has been the case and will always be the case. But unlike PSU banks there is a much higher level of scrutiny that takes place in private banks before loans are approved. If you have a look at the DSIBs in India, you can see that 2 of the 3 banks are private, namely HDFC and ICICI. What does this imply you ask? If any one of the DSIBs fails in India, our whole economy falls apart. So hypothetically if that happens, the RBI will have to step in to save these banks. Also, the case with YES bank was different. The management got greedy with growth and started giving money to companies which they knew would likely not be able to pay them back. One by one their loan books started seeing red and then came the liquidity crisis. Sure there are some badly managed private firms, but it is up to us as consumers to make an informed decision on where to put our money. Just have a look at the history of NPAs of various banks in India. You'll come to understand where HDFC and ICICI stand.
Having said that, it is true that your money is comparatively safer with PSUs because if they fail, you'll see another merger and RBI will look the other way. All at the expense of us citizens.

Complementary agree with all your points and as I have also mentioned that I myself have HDFC Imperia, Axis Liberty, Icici, Kotak, Paytm, Fi savings account.
All of these are private banks,
But the guy and some people even suggested au bank or the guy himself is asking where there is most perks.
So comparatively, I told that don't put perk over trust. There might be a new company, who might give somewhat more perk but would you trust them over little extra perk ?

 

[Chaitanya-a]

Also, the case with YES bank was different. The management got greedy with growth and started giving money to companies which they knew would likely not be able to pay them back. One by one their loan books started seeing red and then came the liquidity crisis.

Rana Kapoor the clown