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.
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.
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
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.
Ohh credit card makes sense. Then if we rely on this it’ll be better to put most of the emergency money in some low risk investment instrument.
Hanji, I'm also doing something like that.
12-14
Quite narrow range. Any reason for this number ,
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