September 26, 2010 1:59 pm
Which bank offers the best Savings bank account to keep all or part of your emergency fund?
Frankly, I have no idea about products of various banks. However, this decision varies from person to person. Since this is emergency fund, you need to take care of few of things below:
First, you need to withdraw funds any time in emergency. So, please check which bank has ATMs near to your home & work place or places you are frequently visiting. you need to prepare list of ATMs which are most convenient to you for withdrawing money in your day to day routine.
Once you shortlist banks based on above, please find out whether they issue you debit card & credit card against your account and what is maximum limits on cards as well as cash withdrawal.
Once done this, please check whether they provide you 2-in-1 account in which your money idling in savings account get transfered in short term FD so as to earn better returns.
Once you check these points, you can most likely decide the bank most suitable for you in your circumstances. If there are still choices open, you may ask specific query in this forum.
@marshaln The SBI savings plus account you are referring to is a very good option. My only problem is that SBI interest rates on the mod facility is lower than private banks like ICICI.
@Ajay You can only transfer it to another bank account and then withdraw it from that account. The idea is if your going to keep your emergency fund in it, you wont have to withdraw money very often anyways.
Go for good & reputed private bank like ICICI, HDFC. I never prefer Govt. banks as they’re not in good service. ICICI offers more office timings than Govt. banks – till 6:00 PM.
Also, you’re talking about “emergency” fund”. You can not withdraw your money from Govt. bank if on that particular day they’re on strike.
Pvt. Banks generally don’t go for strike.
Hope this idea will help you.
I hope U must first decide your mode of working and Requirement.
Are you Business Person / Slaried ?
Are u Frequent Traveler ?
Are you Traveling to Smaller Places or to Metros or Abroad?
Then only decide the bank
If u opt for Private banks due to very good facilities and good returns but you travel into interior places and no branch for that Bank then no use of keeping fund into that bank. But if u Travel to Metros / Big Cities then its ok
In spite SBI has more number of Branches and ATMs through the country.
Again if U travel Abroad then Instead SBI Private Bank will Work Good.
am using SBI saving and MOD from last 3yrs never faced problem
@Ajay I think distributing it in more than 2 banks does not make sense. For an emergency fund, an account with sweep in facility is good which not many private banks have. And the public banks that do have this facility do not have the best service.
Also I have come across this only online account option that ICICI has similar to the ones available in United states. It offers a sweep in facility and the interest rates are better than say for example SBI This account has no minimum balance requirement but you cannot visit any branch or ATM. This should be ideal to keep an emergency fund. Would like to know what you guys think about this…?
@Joel “This account has no minimum balance requirement but you cannot visit any branch or ATM.”
How do we withdraw the money then ?
i have saving a/c in SBI and they have this MOD facility. which gives 6% returns on MOD account.
MOD account is created automatically every month from saving account (minus 5k).
If you withdraw more than 5k then it just “swipe in” from MOD instantaneous
@marshaln. Good point.
These are called by different names. ICICI calls it Quantum Optima, Corp bank calls it CLSB account.
@Joel – How about distributing in various banks. You will reduce the risk if the bank gets into problems. Moreover you can increase the withdrawal amount as you will have those many debit cards. Just remember to keep the debit cards at home and not to carry in your wallet 🙂
I would prefer government banks, SBI and Corporation Bank is very good. I have good experience with these banks.
I would suggest HDFC, ICICI or IDBi as they are very technology sound banks. IDBI is offering zero balance account with many more features so do crosscheck.
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