9 replies on this article “FD – Should I change bank for higher interest?”

1. ashal jauhari says:

   January 16, 2012 at 12:39 pm

   Dear Srivatsan Ganesh, please look into the whole discussion & the fact that the person is running Max Gain home loan. Please do not answer in isolation for that 4% interest rate.

   Also as the FD is an online one, the question of paper work does not arise.

   Thanks

   Ashal

   Reply
2. ashal jauhari says:

   January 15, 2012 at 11:34 pm

   Dear Prasad, please confirm it from SBI people. As far as i know there is no such restriction of registration for using OD account for transactions.

   Regarding the interest rate of 8.75% in Max Gain & 9.25% in FD, please compare the Post tax return of FD to ma gain rate.

   Thanks

   Ashal

   Reply
3. srivatsan ganesh says:

   January 15, 2012 at 10:38 pm

   What about the one month interest ., surely it will be calculated @4% only as you are cancelling it earlier than maturing., and also the process – it will take time for applying FD
   Thing twice 🙂

   Reply
4. Prasad says:

   January 15, 2012 at 10:56 am

   Thanks Ashal.

   So you are telling even before possession, I can park the Max Gain OD A/c. & still withdraw it anytime?
   Somebody told me that till registration of house(now under construction), I can’t avail the benefit of MaxGain OD A/c.

   Also note, for first year, I’m still being charged only 8.75%p.a for my home loan.
   1st year – 8.75%
   2nd & 3rd Year – 9.50%
   4th year on wards – floating

   Reply
5. ashal jauhari says:

   January 15, 2012 at 10:32 am

   Dear Prasad, In case your home loan is Max Gain, you are losing money if you are keeping it in FD. Please put that money right now in the Max Gain OD account. The outstanding loan amount ‘ll come down immediately considering this FD amount as prepayment of your loan & accordingly the 10.5% interest ‘ll be charged on your reduced loan amount. Thus you ‘ll earn 10.5% interest indirectly.

   Yes the amount is free to use as it’s fully liquid & you may withdraw as per your wish.

   Thanks

   Ashal

   Reply
6. Prasad says:

   January 15, 2012 at 9:05 am

   > Why only 1 year?
   End of 1 year, I will get possession of my house (now under construction)
   And since I have opted for SBI MaxGain Home Loan, I can park my emergency fund in this A/c., which will be deducted from principal amount for interest calculation.
   (this is what I have been told of)

   BTW, thanks for that 10year FD.
   I’d prefer MF over FD for 10years.

   Reply
7. ashal jauhari says:

   January 14, 2012 at 11:43 pm

   Dear Prasad, May I know the reason why you preferred only 1Y FD & not higher term?

   FYI please, SBI is the only bank offering max. int. rate i.e. 9.25% for the longest duration i.e. 10Y term.

   Please think over it.

   Thanks

   Ashal

   Reply
8. Prasad says:

   January 14, 2012 at 2:24 pm

   Hi Ankur,

   Thanks for your reply.

   Both the banks have the internet banking, So its not much of paper work, & does not consume more time too.

   Moreover all the investments are in SBI. Would be better if I spread it out among different banks?

   Reply
9. Ankur Lakhia says:

   January 14, 2012 at 1:21 pm

   Prasad,

   How many times you will keep doing this as interest rates would keep varying? Do you have enough time on hand for completeing all documentation formalities for making such changes? Instead of focusing on small interest rate differences, it would be better to stick to couple of reputed banks which offer convenience like having branch / ATM nearer to your home / work place and which can easily provide services when required.

   Reply

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