SA with high interest rates or a bank FD?

[Trust Me]

Suppose you have parked your money in savings account in the same scenario as above, in that cass the 5k you took will also give you same 7 percent.
What if you break 5k in first month, here it will give 3 percent according to slab but savings will give 7 percent

Huh?!

Which Bank gives 7% in savings on 5k from the very first rupee?! Did you consider the SB slabs?

Moreover, the 7% kind of SB rates (that too only on the very highest of slabs) are offered only by some of the weaker banks. Who would want to risk such large amounts on such banks?!

In contrast, the Flexi FDs I was talking about could be from any of the much larger and stronger banks, and even on much more modest amounts (like just a few thousands).
.

 

[NikhilG]

Huh?!

Which Bank gives 7% in savings on 5k from the very first rupee?! Did you consider the SB slabs?

Moreover, the 7% kind of SB rates (that too only on the very highest of slabs) are offered only by some of the weaker banks. Who would want to risk such large amounts on such banks?!

In contrast, the Flexi FDs I was talking about could be from any of the much larger and stronger banks, and even on much more modest amounts (like just a few thousands).
.

you are too quick to reply without understanding my point.
Lets come to the first thing, suppose I am maintaining 50 lacs and according to slab after 25 lacs I earn suppose 7 percent, So after my withdrawal of say 1 lakh that 1 lakh would have earned 7 percent till the time it was there(as its not FD) and now rest of the 49 will earn according to slabs

Lot of commercial banks are giving till 7.5 percent, RBL giving till April 30, IDFC first bank. But yeah if you are sure you are not going to break the fd flexi deposit works fine and also give flexibility in emergency. I talked to ICICI guy and he explained me about this. I also spoke about FIFO concept of sweep in and how is it different from Flexi deposit but I couldn't understand his explanation. Will talk to my ICICI home branch guy again tomorrow.

 

[ontherocks]

Lot of commercial banks are giving till 7.5 percent, RBL giving till April 30, IDFC first bank. But yeah if you are sure you are not going to break the fd flexi deposit works fine and also give flexibility in emergency. I talked to ICICI guy and he explained me about this. I also spoke about FIFO concept of sweep in and how is it different from Flexi deposit but I couldn't understand his explanation. Will talk to my ICICI home branch guy again tomorrow.

ICICI's linked FD is exactly like a regular FD, only that it is linked to your savings account. The additional advantages it has over regular FD are as follows.
1. If you withdraw funds from your savings account beyond your savings account balance, it automatically gets the additional amount from the linked FD
2. There is no penalty for money being deducted from your linked FD
3. There is no limit to the amount of money or number of automatic deductions from the linked FD
4. The balance amount in your linked FD continues to earn the same ROI

 

[NikhilG]

ICICI's linked FD is exactly like a regular FD, only that it is linked to your savings account. The additional advantages it has over regular FD are as follows.
1. If you withdraw funds from your savings account beyond your savings account balance, it automatically gets the additional amount from the linked FD
2. There is no penalty for money being deducted from your linked FD
3. There is no limit to the amount of money or number of automatic deductions from the linked FD
4. The balance amount in your linked FD continues to earn the same ROI

So it's exactly like a sweep in or sweep out concept. Do they have interest rates like normal fd's because otherwise why should they have even put penalty on normal fds (If interest rates are same)
Also why can't we open this online?)