[Thread] How much are you comfortable keeping in ur Bank account?
As u guys know only 5L is insured, I want to know how much you’re comfortable keeping in account? Maybe someone’s living expense could be 10L a year and they are okay with keeping that as emergency fund liquid, just an instance. But given the kinds of scams and stuff that go on in wild, what is a good formula or number of Lacs to keep in bank account? Maybe u have several accounts for different purpose and u divide it? Please share your views.
At least 3 months of expenses, plus some emergency funds.
Unless you have an account in some obscure small bank, don't worry too much about insured sum. If (when?!) HDFC is bankrupt, getting your money back would be the least of your worries
Isn’t 3 months of expense part of emergency funds? Ya not worried of bank closing but worried of some scam where I use anything related to that bank.
3 months is in case of a unexpected expense or a job loss, etc. Emergency should cover medical expenses, keeping these separate is a good idea.
Going through this thread, I feel to be in minority. I keep atleast 20L in my bank account for any emergency funds/medical bills and to have a peace of mind.
HappyFeet92
Stealth
a year ago
Arent there better liquid instruments for emergency? Like FD etc
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I do have about 5L in my bank account (10% of savings). But intend to bring it closer to 3-3.5, I do feel anything beyond is slightly overboard, as long as I'm receiving a salary at the end of the month
Ya man can’t predict if salary will be there always anymore. So I want to know much people have managed to stay comfortable with. There’s just better peace of mind with it I guess
For any such situations, best is auto-sweep accounts. Basically any amount which gets accumulated above threshold (X) can earn FD rates. Easy drawdowns incase of emergencies. It will automatically kill the FD if the drawdown goes beyond X.
Put your emergency money in a ultra short term or short term debt MF or a arbitrage fund. All are almost similar to FDs but you have the tax advantage ie you don’t pay tax on interest until you withdraw
I don't keep more than 50K. Rest goes into FD, Investment, Expenses every month.
FD remains in Bank only (not technically, but in layman terms). When you say “I have in Bank”, you need to count FD as well, specially if you have online FDs.
DarkerKnight
Stealth
a year ago
12-14
I keep about 4-5 L in bank but more because I have been advised it is good to show bank balance while applying for visa! They don’t care about FD apparently at times 😛
Less than a 1lkh in savings account, there possibly can't be "any emergency" where credit card won't cover a same day txn, then in the grace period repay the cc.
ProteinPancakes
Stealth
a year ago
I don’t keep more than 1 in the bank usually
FindingHorses
Stealth
a year ago
I have a lot of money over 40l 🤣 already maxing my investments
FindingHorses
Stealth
a year ago
Nope I have 5 bank accounts
Qwerty2398
Stealth
a year ago
Scheduled banks are equally safe. No goverment will let those Bank fail. As it will impact during elections. But the cooperative banks are different story.
If you want full peace of mind, then move into GSeC or T bill.. safest ..for full amount
PuraniDiwaar
Stealth
a year ago
Where else would you keep it ?
Diversify. Put the 1-2L in multiple accounts. Plus also have the option of arbitrage/liquid funds
Currently have around 12 lakhs. I don't worry about losing money too much. Like other person said, if hdfc goes bankrupt, your bank account is the least of your worries.
Gotcha. To be clear, I don’t worry about HDFC but scammers or someone simply getting access to my account due to some mistake on my part. But thanks for sharing the 12L figure
Not more than 10k in any bank account. Rest all are in either liquid fund or 10-45 day window FD.
Hash003
Stealth
a year ago
I keep it generally in Linked FDs. Get decent returns and completely liquid in case of any Emergency
Having 6 months expenses as emergency amount is a good option. I don’t keep money in my savings account. I keep it in liquid funds and FDs(I do an OD against FD. In case, immediate money is required, I simply take it out from the OD). I just keep the minimum required balance for savings account.
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