POSTED BY November 4, 2013 5:46 pm COMMENTS (4)ON
I have an SBI Maxgain home loan with an EMI of Rs.90,000.
I receive my salary on 31st of every month. I want to put my entire salary immediately into the OD a/c for maximum benefits and withdraw from it later as per my need.
Interest for the month is debited from the Maxgain OD account on the 31st of every month. And the EMI is credited to the OD on the EMI date. My EMI date is on 5th of every month, which is the earliest that SBI is able to offer (I checked).
Hence for 5 days, just waiting for the EMI ECS to happen, I am forced to hold back at least Rs.90,000 in my salary a/c, which is an SB a/c with Axis Bank. In absolute terms, I lose Rs.15.29 a day for this which is Rs.76.44 over 5 days due to the interest rate difference of my Axis bank SB a/c (4%) and the Maxgain OD account (10.2%).
My calculation above is based on the fact that if I had transferred that Rs.90,000 to my Maxgain OD account on 31st of every month, the end of day balance (which is used to calculate the monthly interest) would be higher by Rs.90,000 for 5 days from 1st to 5th.
This same story repeats every month.
Is it possible at all to have the EMI ECS from my SBI Maxgain OD a/c itself? I know this sounds sort of crazy since it would actually mean ECS from the OD account to the same OD account. Just I wanted to check is this is possible since it is possible for me to use my OD account as a normal SB account in all other cases, for example, issue cheques, have my mobile bill ECS from my Maxgain OD account, etc.
I understand that Rs.76.44 may not be a big amount. But I don’t want to lose Rs.76.44 every month for the entire duration of my loan.
One solution that I have tried is to transfer the entire salary to my OD account on 31st and again transfer Rs.90,000 back to my Axis SB account on 4th just for the EMI ECS debit back to my Maxgain a/c the next day. But this seems complicated. There should be a simpler solution.
Let me know if you can suggest any other solution for this problem.