Best savings bank account
I am planning to open a savings bank account where i can keep up to 5-10L in savings.
Do you have any suggestions? Which is the best one and a secured one and works 24x7 without any issues..
For saving account you need to see what are your requirements you are looking in a savings account. DICGC cover upto 5 lakh in case a bank fails. Howevere if you go with big banks there is very less chance (almost zero) that they fail.
On a side note i normally keep most of my amount in some liquid funds and a very less portion in savings account. They give good interest and can witdrwal in t+1. If t+1 withdrwal are fine with you consider liquid funds. They also dont have any penalty for redemption unlike FD (if you are planning) which have withdrawal penalty before maturity. If you are under 30% tax bracket can consider arbitrage fund also instead of liquid fund since these are more tax efficeint.
In any case if you want to go with savings bank account look for zero balance they dont charge penalty for not holding nay minimum balance in case you later decide to withdraw. Also check upi limits, i am not sure but maybe different banks have different upi limit for a transaction. (Daily limit as well as per transaction limit). Dependinf on type of account you open
Which Liquid fund? Can you suggest one ?
If you have demat account than you can buy etf (liquidbees) each unit cost 1000 and amount is credited in form of units. You get daily interest. Other option is if you dont have demat account or dont want to invest through deamt account then liquid mutual funds are there. You csn gobwith any option just sersch for liquid funds on platform you buy. Some examples are. Hdfc liquid fund, icici liquid fund etc. If going through mutual fund route instead of demat then while buying mutual fund make sure it is direct scheme (coin by zerodha has all direct schemes only) and option you select is growth option not idcw
IDFC has the highest savings interest rate of 7% for 5-10L balance slab. Go for idfc wealth. I have 5 accounts in family including myself.
I think liquid fund would be better than FD in any case. If someone can take just a little more risk can go for arbitrage fund. I think these woll give better return compared to FD. And in case of arbitrage fund tax are also less since they are treated as equity so 12.5% tax only for long term and 20% for short term. Unlike FD where tax csn go as high as 30% depending on your tax bracket
Read about - Liquid funds ...
Bank selection is irrelevant.
"without any issues" is tricky. I'd say IDFC First bank.
If you trust newer banks, Slice savings account(slice acquired North East Small Finance Bank recently) is really nice, it has FDish interest rate(~5%) on savings account, with DAILY interest credit, and has no charges. This will work without any issues too, for UPI etc.
