Many Bank Account Holders in INDIA prefer to keep very “handsome” bank balances in S.B. a/C. on the pretext that money may be required in emergency or their “better Half” feels happy & contended while looking at Bank Balance!!
Other “smart” S.B. Account Holders opt for “ Auto sweep ” to Fixed Deposits ( FD) in case their S.B. A/c. balance exceeds certain predefined limit.
Have you ever understood interest calculation in case of Auto Sweep FD? Have you ever got “TDS” certificates from Bank well in time before you file I.T. Return ? Have you received Notice from I.T. Dept. to explain source of Money in case you have put Bank FD in the name of spouse advised by Bank Manager?
Well, India has changed a lot but have you ever thought of any other option which is far better and addresses your all concerns? Yes, you can get rid of all mental agony and earn higher return than Ban k with lot of comforts and tax efficiency if you change your savings habits!! There are two solutions. First convert your FD to Debt Funds ( to earn 8 – 9%) and put your S.B. A/c. Balance into Liquid Funds ( 5 – 6%). Would like to add that it takes less than 30 seconds to withdraw your money from Liquid funds. Secondly , start SIP in Debt Funds and treat it like Liquid funds after 3 years to enjoy tax benefits and higher returns. I am sure, if you invest as per suggested lines, you will have all monetary benefits and comforts with higher return but Bank will put you in “Neglected” category from “Preferred” , “Classic” or “imperia” category since you have taken away their cream!! Choice is yours.
Pl. notes that I am sending this write up to all my clients across the globe using mass media communication technology. Incase these comments are not applicable/acceptable, you may please ignore the same.
