Opening a group account with HDFC Bank.

POSTED BY RashmiPadiyar ON April 6, 2012 12:22 am ONE COMMENT

I wanted a locker so I approached a newly opened HDFC Bank branch in my locality. There I was informed that I can get a locker if I open a Group account – one in my name and one in my husband’s name – with a monthly average balance of Rs.1,00,000/-.
The advantage of the group account is that the combined balance of both accounts could be Rs. 1lacs. Further, the 1st 1 lac will get standard interest of 4% p.a & any amount over and above Rs.1,00,000/- will earn an interest of 9% p.a
My question is-
a) Does it make sense to open a group account and transfer my contingency fund of Rs.2,00,000/- there. I will get 4% on 1 lac and 9% on the other 1 lac.
b) Currently it is in a FD in my name. Since I am a home-maker I do not have any other income. But will the interest above Rs.10,000/- be taxable for me under the clubbing of incomes provision.

Thanks in advance.

One reply on this article “Opening a group account with HDFC Bank.”

  1. Dear Rashmi, first of all please ask yourself that you require that bank locker or not? Then only it’s beneficial to discuss. In the name of Locker, banks are minting money in cheap. If you are not demanding a locker, same 1L Rs. in a FD from same HDFC can earn you a 9% ROI.

    That 1L Rs. group account earning 4% paltry return which is negative actually, is a price that you have to pay if you have enough Gold & other things to be kept in that locker.

    Thanks

    Ashal

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