Options to park extra cash?

Sounds too good to be true. No TDS. High liquidity.
But are they safe??

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Kotak bank says, for Less than 181 days(4.4% interest for 180 days) tenure FD, there is no premature withdrawal penalty. And for higher duration, penalty is 0.5% .

It appears there are some caveats. One needs to learn the payout cycle in detail. The payout frequency and associated discount has to be studied.

  1. For Fixed Deposits with tenure below 181 days, interest will be calculated at maturity as Simple Interest.
  2. Standalone Fixed Deposits of tenure 181 days and above linked to saving / current account will be treated as per the regular sweep deposit functionality and penal charge will be applicable as above.
  3. For ActivMoney (2 way sweep deposits) Regular Fixed Deposit rates will be applicable for all customers including Senior Citizen’s / Bank Staff
  4. Interest on Fixed Deposit can be paid for a period of less than a quarter (monthly interest payout) at the discounted interest rates as per RBI directives.

Edit: I have a feeling #1 above is exclusive and cannot be combined with #4. Which could mean no interest if withdrawn before 180 days.

Look into paytm bank’s offering. There are tied up with Indusind Bank, so the FD rates are quite high and theirs is a unique product, where the amount gets accumulated as per the time in the product and the fd interest rate for that time.

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Up to 5 lac you are safe by Govt provided insurance

Kotak mahindra is no good for FD . I still maintain the sb with kotak 30k balance & use it montly to pay power bill only.Kotak atm’s are functional & handy if you need cash.
as a senior with a wide bouqet of banks for Fd -
I recently closed Fd’s in kotak,central,BOB,Syndicate (canara) etc
I do have fd’s in Indusind (@7.5% senior rate booked last july) . In the same high risk category have Fd’s in LVB also (now DBS) .LVB is paying old high fd interest in time . But new rates are low .I wont renew Fd with LVB come july.
Opened FD a/c in new risky players Equitas, DCB . will shortly open in IDFC , Bandhan, RBL etc (never more than 5 lakhs FD /per bank)
shall close accounts completely in central,BOB,Canara,OBC etc.
South based private banks are still good (FD interest higher than sbi but less than Indusind) TMB,CUB,KVB,SIB,Federal .
In god we trust . but trust RBI’s 5 lakh guatantee more ! :smiley:


Yes you will keep 5 lac max per bank but with these private banks …be careful about their terms and conditions and fine print

Kotak Mahindra Bank now offers 4% interest on savings account for > 1,00,000 and 3.5% for balances upto 1,00,000