FluffyNugget

[Thread] How much are you comfortable keeping in ur Bank account?

As u guys know only 5L is insured, I want to know how much you’re comfortable keeping in account? Maybe someone’s living expense could be 10L a year and they are okay with keeping that as emergency fund liquid, just an instance. But given the kinds of scams and stuff that go on in wild, what is a good formula or number of Lacs to keep in bank account? Maybe u have several accounts for different purpose and u divide it? Please share your views.

19mo ago

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GoofyDonut

Stealth19mo

At least 3 months of expenses, plus some emergency funds.

Unless you have an account in some obscure small bank, don't worry too much about insured sum. If (when?!) HDFC is bankrupt, getting your money back would be the least of your worries

FluffyNugget

Plivo19mo

Isn’t 3 months of expense part of emergency funds? Ya not worried of bank closing but worried of some scam where I use anything related to that bank.

GoofyDonut

Stealth19mo

3 months is in case of a unexpected expense or a job loss, etc. Emergency should cover medical expenses, keeping these separate is a good idea.

WobblyNoodle

InMobi19mo

Going through this thread, I feel to be in minority. I keep atleast 20L in my bank account for any emergency funds/medical bills and to have a peace of mind.

FluffyNugget

Plivo19mo

I think similar but for me 8L looks fair. Over that I feel it’s risky

MagicalDumpling

Myntra19mo

Arent there better liquid instruments for emergency? Like FD etc

PeppyNarwhal

Swiggy19mo

I don’t keep more than 1-2L in my bank account lol. 😛

FluffyNugget

Plivo19mo

Hope u don’t have some medical or other kind of emergency 😅

PeppyNarwhal

Swiggy19mo

I keep all my money in my trading account. In case of emergency will withdraw but it will take a day to reflect.

FluffyCupcake

Amazon19mo

For any such situations, best is auto-sweep accounts. Basically any amount which gets accumulated above threshold (X) can earn FD rates. Easy drawdowns incase of emergencies. It will automatically kill the FD if the drawdown goes beyond X.

FluffyNugget

Plivo19mo

I keep going back and forth with this. Have u tried it? There’s no penalty or some hidden charge?

FluffyNugget

Plivo19mo

One thing I read is once u activate on ur account, it’s hard to get it deactivated

DerpyPotato

Stealth19mo

I do have about 5L in my bank account (10% of savings). But intend to bring it closer to 3-3.5, I do feel anything beyond is slightly overboard, as long as I'm receiving a salary at the end of the month

FluffyNugget

Plivo19mo

Ya man can’t predict if salary will be there always anymore. So I want to know much people have managed to stay comfortable with. There’s just better peace of mind with it I guess

CosmicQuokka

Paralleldots19mo

Less than a 1lkh in savings account, there possibly can't be "any emergency" where credit card won't cover a same day txn, then in the grace period repay the cc.

FluffyNugget

Plivo19mo

Ohh credit card makes sense. Then if we rely on this it’ll be better to put most of the emergency money in some low risk investment instrument.

CosmicQuokka

Paralleldots19mo

Hanji, I'm also doing something like that.

PerkyDumpling

Stealth18mo

I have a lot of money over 40l 🤣 already maxing my investments

FluffyNugget

Plivo18mo

Not sure if u are serious or joking. All 40L in bank account?

PerkyDumpling

Stealth18mo

Nope I have 5 bank accounts

WobblyPancake

CARS2419mo

I keep about 4-5 L in bank but more because I have been advised it is good to show bank balance while applying for visa! They don’t care about FD apparently at times 😛

FluffyNugget

Plivo19mo

Ooh good point. Thanks

DerpyTaco

Zepto19mo

I don't keep more than 50K. Rest goes into FD, Investment, Expenses every month.

JumpyPretzel

Stealth19mo

FD remains in Bank only (not technically, but in layman terms). When you say “I have in Bank”, you need to count FD as well, specially if you have online FDs.