Since 1 lakh is the maximum amount that one is insured out of their deposits under DICGC. So keeping this as context, how many savings accounts are really needed according to you?
P.S I do not invest in mutual funds and stuff like that. I keep my money in savings, have FDs and insurance covers. Hence a lot of money is there in savings accounts.
Iamsubho-To me ONLY ONE. However, if you feel that keeping money in savings account and in FD is a must. Also, have concerns about bank’s default, then I suggest you to open joint accounts. In that case, let us say a savings account with 3 joint account holders like A, B and C. You can keep some deposits in a manner like A, B and C; C, B and A; C, A and B; A, C and B;. In that case such deposits are treated separately.
However, a serious question-Whether your money grow by keeping in savings account? Keep only the household requirement and some emergency fund. Rest of the money must work for you. Otherwise, you work for money. I am not suggesting you to invest in mutual funds or somewhere. However, keeping money idle is not a good sign of financial life.
For further reading on DICGC, read my earliest post
yes sir i got your point.not that much but my savings account has more than 1 lakh at times. As u said in case of joint acounts deposits are treated separately.so say for instance i have a joint account with two other people and i have 4 lakhs in my savings.so in this case am i eligible to get 3 lakhs from bank? (1 lakh each for 3 people)
imasubho-No,it is only one lakh.
iamsubho-No, I think you confused between savings account and FD consideration. The joining holding idea I shared with you applies only for FDs. But not for savings account. What I suggest is, if you have more than Rs.1 lakh cash in savings account, then create online FDs of a year or so. In that case, change the holding pattern. This saves your savings account as well as FDs. I said online FDs, because they are highly liquid, with a click of button, the money will be in your savings account.
It’s important to understand the benefits of having more than one savings account. One can hold an individual savings account in ICICI Prudential and also hold a joint savings account. Investing in an emergency fund is also a wise choice. You have to make an analysis of the benefits accruing from many accounts. In the case of ample savings, the best option would be ICICI’s mutual funds for long-term returns.
ICICI Prudential Savings Account? But ICICI Pru is not a bank. ICICI Mutual Funds as savings account??