SBI MAXGAIN as short term savings option

POSTED BY Daredevil13 ON February 1, 2013 11:15 pm COMMENTS (4)

I welcome your views on using SBI Maxgain facility as savings option for a short term goal.

The goal is 20 months away and the corpus required is approx Rs. 2,30,000.

As i understand, investing 10,000 monthly extra into maxgain and reinvesting the interest saved will accumulate corpus that grows at the rate 10.15% (Homeloan ROI) which seems to be better than FD or RD.

Please share your views. 

Note: i might be incorrect on my calculation for the final corpus of 2.3L at the end of 20 months.

4 replies on this article “SBI MAXGAIN as short term savings option”

  1. Daredevil13 says:

    Hi Ashal, Because its interest rate is lower and also subject to tax, RD does not look attractive to me. I will go ahead with maxgain option for two reasons: higher ROI and no tax issues. Thanks.

  2. Daredevil13 says:

    Thanks Ashal, is there any other investment option one can consider for this short term of 20 months that might give better returns?

    1. Dear daredevil, how about investing in a bank RD? I’m not counting on taxation issues here.



  3. Dear Daredevil, you need to put in a bit more i.e. 11000 Rs. mly extra into your MG acct. to get 2.3L Rs. after 20 months. The difference is coming from the point that you are not earning any extra interest @ 10.15% but you are saving that much interest on your 10000 Rs. on mly basis surplus parking. Yes the basic concept of parking for your short term goal is right.



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