Best Bank Account for Keeping Your Emergency Fund?

[wiseinvestor]

Hi Guys,

Can you please suggest the best bank account for keeping the emergency fund?

I have an ICICI bank account as my primary account (Salary account) and another SBI account to keep some money.

I am planning to put some emergency funds aside (around 3-4L), but the SBI has very low interest rates, getting 2.7%. Though SBI has a good online facility I am confused about whether I should keep my emergency funds at that low interest rate.

Things, I want to consider for having an account for emergency funds

1. It should have good online facilities (app or web presence) for fund transfers, balances and statements.

2. Provide some basic Debit cards with up to 1 lakh daily withdrawal limit.

3. Want to go with some good, reputed and clean track record bank.

4. Having a Good interest rate is a plus point and am looking for. (SBI has points 1, 2, 3 but lacks here)

5. The account should have minimum maintenance charges like, Zero balance or up to 10k MAB

Thanks

 

[Sudhaker]

You can use your existing SBI account for this and I suggest you enable sweep FD in the same for the amount above certain balance, lets say 10K.
As the Sweep out executes the existing balance anything above 10K would automatically be converted to FD and would earn higher interest rate.
The beauty of this is when you need funds the Sweep In from FD to your regular account happens without any additional steps / visit to bank.
That is, lets say, your regular account balance is 5K and 3.5L is swept into FD when you withdraw amount or issue a cheque of lets say 50K automatically 50K is transferred from FD Sweep account to your regular account and the cheque would be disbursed where as remaining 3 would still be earning FD interest rates.

 

[Sarcastic_bubu]

Hi Guys,

Can you please suggest the best bank account for keeping the emergency fund?

I have an ICICI bank account as my primary account (Salary account) and another SBI account to keep some money.

I am planning to put some emergency funds aside (around 3-4L), but the SBI has very low interest rates, getting 2.7%. Though SBI has a good online facility I am confused about whether I should keep my emergency funds at that low interest rate.

Things, I want to consider for having an account for emergency funds

1. It should have good online facilities (app or web presence) for fund transfers, balances and statements.

2. Provide some basic Debit cards with up to 1 lakh daily withdrawal limit.

3. Want to go with some good, reputed and clean track record bank.

4. Having a Good interest rate is a plus point and am looking for. (SBI has points 1, 2, 3 but lacks here)

5. The account should have minimum maintenance charges like, Zero balance or up to 10k MAB

Thanks

You should keep your fund in SBI as we all know.
As per your requirement you should on auto sweep on your sbi bank account if you really comfortable with sbi .
Then you can get FD's returns with a savings account flexibility. I think is a good option to get benefits of interest.
And let me tell you one thing that please read terms and conditions before start this feature in your account.
It's only good when you keep your funds for a long time ... with a savings account feature.
I hope you got it .

 

[AryanBaadshah]

You should keep your fund in SBI as we all know.
As per your requirement you should on auto sweep on your sbi bank account if you really comfortable with sbi .
Then you can get FD's returns with a savings account flexibility. I think is a good option to get benefits of interest.
And let me tell you one thing that please read terms and conditions before start this feature in your account.
It's only good when you keep your funds for a long time ... with a savings account feature.
I hope you got it .

JUST OPEN 1 ACCOUNT IN KOTAK 811 ZERO BALANCE ACCOUNT OR AU SMALL FINANCE BANK THERE IS HIGHEST INTEREST RATE IN ALL THESE BANKS AND ALSO YOU CAN USE YOUR MONEY WHEN YOU NEED IT. JUST ENABLE SWEEP FEATURE.....

 

[zacobite]

Hi Guys,

Can you please suggest the best bank account for keeping the emergency fund?

I have an ICICI bank account as my primary account (Salary account) and another SBI account to keep some money.

I am planning to put some emergency funds aside (around 3-4L), but the SBI has very low interest rates, getting 2.7%. Though SBI has a good online facility I am confused about whether I should keep my emergency funds at that low interest rate.

Things, I want to consider for having an account for emergency funds

1. It should have good online facilities (app or web presence) for fund transfers, balances and statements.

2. Provide some basic Debit cards with up to 1 lakh daily withdrawal limit.

3. Want to go with some good, reputed and clean track record bank.

4. Having a Good interest rate is a plus point and am looking for. (SBI has points 1, 2, 3 but lacks here)

5. The account should have minimum maintenance charges like, Zero balance or up to 10k MAB

Thanks

IDFC / INDUSIND have higher rates for FDs and savings.. FD upto. 5L insured.. Put into a debt fund as well is an option

 

[omneelsavant]

Hi Guys,

Can you please suggest the best bank account for keeping the emergency fund?

I have an ICICI bank account as my primary account (Salary account) and another SBI account to keep some money.

I am planning to put some emergency funds aside (around 3-4L), but the SBI has very low interest rates, getting 2.7%. Though SBI has a good online facility I am confused about whether I should keep my emergency funds at that low interest rate.

Things, I want to consider for having an account for emergency funds

1. It should have good online facilities (app or web presence) for fund transfers, balances and statements.

2. Provide some basic Debit cards with up to 1 lakh daily withdrawal limit.

3. Want to go with some good, reputed and clean track record bank.

4. Having a Good interest rate is a plus point and am looking for. (SBI has points 1, 2, 3 but lacks here)

5. The account should have minimum maintenance charges like, Zero balance or up to 10k MAB

Thanks

Hi,
Kotak Mahindra Bank is the most suitable, I believe because of the following reasons:
1. They have a zero balance account called Kotak 811 and also the one where you need to maintain some minimum balance but I have the zero balance account.
2. Kotak has a 3.5% SB interest which is higher than the other trusted banks (SBI has 2.75% and Canara has 2.9%). I know a few people will also suggest AU Small Finance Bank but I personally trust Kotak for my emergency fund.
3. Their banking app allows you to make UPI payments.
4. Kotak's auto-sweep feature called ActivMoney comes with no penalty in case you need to withdraw money which was sweeped into FDs. When you turn on the ActivMoney feature, the account has to leave at least 25k in your account and the rest is sweeped into FDs of 5k each.
5. Their physical debit card is of VISA which is why it costs 299 bucks annually which is pricier than Mastercard or Rupay. I don't use the physical debit card. I have kept the virtual one while I have the physical debit card of another bank which costs me less in annual charges.

Hope all this helped.

 

[Skylar]

JUST OPEN 1 ACCOUNT IN KOTAK 811 ZERO BALANCE ACCOUNT OR AU SMALL FINANCE BANK THERE IS HIGHEST INTEREST RATE IN ALL THESE BANKS AND ALSO YOU CAN USE YOUR MONEY WHEN YOU NEED IT. JUST ENABLE SWEEP FEATURE.....

I would avoid AU small finance bank, their cc is the worst.
Kotak would be better option even Kotak cc is worst but convince of the app is topnotch.

 

[Skylar]

You should keep your fund in SBI as we all know.

Bro do lil research on SBI Auto sweep it could be the worst.
I myself have had an SBI account for over 24 years and it's not at all worth it.

 

[PIX789]

Hi Guys,

Can you please suggest the best bank account for keeping the emergency fund?

I have an ICICI bank account as my primary account (Salary account) and another SBI account to keep some money.

I am planning to put some emergency funds aside (around 3-4L), but the SBI has very low interest rates, getting 2.7%. Though SBI has a good online facility I am confused about whether I should keep my emergency funds at that low interest rate.

Things, I want to consider for having an account for emergency funds

1. It should have good online facilities (app or web presence) for fund transfers, balances and statements.

2. Provide some basic Debit cards with up to 1 lakh daily withdrawal limit.

3. Want to go with some good, reputed and clean track record bank.

4. Having a Good interest rate is a plus point and am looking for. (SBI has points 1, 2, 3 but lacks here)

5. The account should have minimum maintenance charges like, Zero balance or up to 10k MAB

Thanks

If you say about emergency fund than all the criterias mentioned from your end are not relevant because as the name say emergency fund means that your fund needs to be withdrawn the moment you apply for withdrawal. Keep funds in savings account in Good Big Banks like HDFC/KOTAK/ICICI where they allow you to withdraw your amount asap. If possible, keep in an FD that avails basic rate of return but the withdrawal rules are too simple, easy n fast !

 

[Sarcastic_bubu]

Bro do lil research on SBI Auto sweep it could be the worst.
I myself have had an SBI account for over 24 years and it's not at

Bro do lil research on SBI Auto sweep it could be the worst.
I myself have had an SBI account for over 24 years and it's not at all worth it.

I think you should do your research as per your requirements....
After all that fund is your hard earned money...

You can keep that fund in HDFC with a 3% roi on savings account.

 

[Skylar]

I think you should do your research as per your requirements....
After all that fund is your hard earned money...

You can keep that fund in HDFC with a 3% roi on savings account.

Dear @Sarcastic_bubu

 

[AV$]

I would avoid AU small finance bank, their cc is the worst.
Kotak would be better option even Kotak cc is worst but convince of the app is topnotch.

Between AU and Kotak definitely go with Kotak. Also service area is not an issue in Kotak
Even if it is not serviceable, they will themselves call you and ask the problem and suggest solution.
AU just doesn't care, same automated response every time.

 

[Skylar]

Between AU and Kotak definitely go with Kotak. Also service area is not an issue in Kotak
Even if it is not serviceable, they will themselves call you and ask the problem and suggest solution.
AU just doesn't care, same automated response every time.

Yeah, AU is worst bank, Next 5 years I wonder if they would even survive. with the Worst Costumer support they have.

 

[abhimarda]

Keep in any of the Small Finance banks as they offer higher interest rates in SB account. All of them are regulated by RBI and money till Rs.5 lacs is insured like in other scheduled banks. Some of the small finance banks which offer higher interest rates are as below but they may have some criteria for higher interest rates( most of them provide higher interest rates for amount more than 1 lakh)
1) Jana Small Finance Bank
2) Ujjivan Small Finance Bank
3) Utkarsh Small Finance Banks
4) AU Small Finance Bank
5) Unity Small Finance Bank.

I have experience if using 1, 2 and 4 above and they are decent. There may be other SFB in your area as well.

 

[navneet9827]

Hi Guys,

Can you please suggest the best bank account for keeping the emergency fund?

I have an ICICI bank account as my primary account (Salary account) and another SBI account to keep some money.

I am planning to put some emergency funds aside (around 3-4L), but the SBI has very low interest rates, getting 2.7%. Though SBI has a good online facility I am confused about whether I should keep my emergency funds at that low interest rate.

Things, I want to consider for having an account for emergency funds

1. It should have good online facilities (app or web presence) for fund transfers, balances and statements.

2. Provide some basic Debit cards with up to 1 lakh daily withdrawal limit.

3. Want to go with some good, reputed and clean track record bank.

4. Having a Good interest rate is a plus point and am looking for. (SBI has points 1, 2, 3 but lacks here)

5. The account should have minimum maintenance charges like, Zero balance or up to 10k MAB

Thanks

I recommend to use et monet app for emargency fund . It has some liquid fund section utilise it soon. For emergency issues.

 

[Sudhaker]

Bro do lil research on SBI Auto sweep it could be the worst.
I myself have had an SBI account for over 24 years and it's not at all worth it.

Auto sweep works best if the account is being used rarely as it would less likely trigger the frequent sweep in / out. If you are using the account for day to day use such as UPI payments and getting credits frequently then Auto sweep would may result in losing money due to penalties in breaking FD frequently.
I have an SBI account which I opened when I was in college and using it for Emergency funds with auto sweep enabled, using a private bank account for salary and UPI payments. Hence getting better returns and have instant access to funds without any hassle from SBI.

 

[theraj0007]

Hi Guys,

Can you please suggest the best bank account for keeping the emergency fund?

I have an ICICI bank account as my primary account (Salary account) and another SBI account to keep some money.

I am planning to put some emergency funds aside (around 3-4L), but the SBI has very low interest rates, getting 2.7%. Though SBI has a good online facility I am confused about whether I should keep my emergency funds at that low interest rate.

Things, I want to consider for having an account for emergency funds

1. It should have good online facilities (app or web presence) for fund transfers, balances and statements.

2. Provide some basic Debit cards with up to 1 lakh daily withdrawal limit.

3. Want to go with some good, reputed and clean track record bank.

4. Having a Good interest rate is a plus point and am looking for. (SBI has points 1, 2, 3 but lacks here)

5. The account should have minimum maintenance charges like, Zero balance or up to 10k MAB

Thanks

YOU CAN GO WITH KOTAK BANK

 

[rohit_20085]

Hi Guys,

Can you please suggest the best bank account for keeping the emergency fund?

I have an ICICI bank account as my primary account (Salary account) and another SBI account to keep some money.

I am planning to put some emergency funds aside (around 3-4L), but the SBI has very low interest rates, getting 2.7%. Though SBI has a good online facility I am confused about whether I should keep my emergency funds at that low interest rate.

Things, I want to consider for having an account for emergency funds

1. It should have good online facilities (app or web presence) for fund transfers, balances and statements.

2. Provide some basic Debit cards with up to 1 lakh daily withdrawal limit.

3. Want to go with some good, reputed and clean track record bank.

4. Having a Good interest rate is a plus point and am looking for. (SBI has points 1, 2, 3 but lacks here)

5. The account should have minimum maintenance charges like, Zero balance or up to 10k MAB

Thanks

You can go for any small finance Bank or IDFC FIRST BANK. I am using ujjivan for interest rate. Their regular savings account is zero balance. Since you already have account in SBI & icici, point 2 is not much important as you can add your existing account as beneficiary in your new account and transfer fund through IMPS

 

[guptajoy961]

Hi Guys,

Can you please suggest the best bank account for keeping the emergency fund?

I have an ICICI bank account as my primary account (Salary account) and another SBI account to keep some money.

I am planning to put some emergency funds aside (around 3-4L), but the SBI has very low interest rates, getting 2.7%. Though SBI has a good online facility I am confused about whether I should keep my emergency funds at that low interest rate.

Things, I want to consider for having an account for emergency funds

1. It should have good online facilities (app or web presence) for fund transfers, balances and statements.

2. Provide some basic Debit cards with up to 1 lakh daily withdrawal limit.

3. Want to go with some good, reputed and clean track record bank.

4. Having a Good interest rate is a plus point and am looking for. (SBI has points 1, 2, 3 but lacks here)

5. The account should have minimum maintenance charges like, Zero balance or up to 10k MAB

Thanks

Based on the criteria you’ve provided, I recommend considering a high-yield online savings account. These accounts offer a blend of convenience, security, and better returns. Let’s dive into the details:

1. Axis Bank and HDFC Bank are excellent choices for your emergency fund. Here’s why:
   • User-Friendly Online Banking: Both banks provide slick mobile apps and web portals for seamless fund transfers, balance checks, and statement access. No more navigating through labyrinthine interfaces!
   • Generous Daily Withdrawal Limits: Their debit cards allow you to withdraw up to ₹1 lakh per day. That’s like having a personal ATM on speed dial!
   • Rock-Solid Reputation: Axis Bank and HDFC Bank are like the Gandalfs of the banking world—reputable, well-established, and with a clean track record. You won’t find any Balrogs here!
   • Interest Rates That Make Your Piggy Bank Smile: Currently, they offer competitive interest rates—around 4-5% per annum. Compare that to the paltry 2.7% offered by SBI, and it’s like upgrading from a tricycle to a turbocharged bike!
   • No Minimum Balance Drama: Say goodbye to fretting over maintaining a minimum balance. These accounts come with zero minimum balance requirements and no pesky monthly maintenance charges.
2. Why These Accounts Rock for Your Emergency Fund:
   • Liquidity: Need cash pronto? These accounts have your back. Whether it’s a sudden car breakdown or an impromptu unicorn adoption (hey, emergencies come in all shapes!), you can access your funds without summoning a council of wizards.
   • Security: Your hard-earned moolah is safe and sound. Axis Bank and HDFC Bank have guarded vaults, digital dragons, and probably a few enchanted goblins protecting your stash.
   • Better Returns: Think of these accounts as magical beanstalks. Your emergency corpus will sprout faster than Jack’s beanstalk, minus the giant and the golden goose.

So, my dear financial adventurer, go forth and open that high-yield online savings account. Your emergency fund will thank you when it’s time to slay those unexpected dragons!

May your savings grow like a well-watered ficus tree!

 

[Sudhaker]

Based on the criteria you’ve provided, I recommend considering a high-yield online savings account. These accounts offer a blend of convenience, security, and better returns. Let’s dive into the details:

1. Axis Bank and HDFC Bankare excellent choices for your emergency fund. Here’s why:
   • User-Friendly Online Banking: Both banks provide slick mobile apps and web portals for seamless fund transfers, balance checks, and statement access. No more navigating through labyrinthine interfaces!
   • Generous Daily Withdrawal Limits: Their debit cards allow you to withdraw up to ₹1 lakh per day. That’s like having a personal ATM on speed dial!
   • Rock-Solid Reputation: Axis Bank and HDFC Bank are like the Gandalfs of the banking world—reputable, well-established, and with a clean track record. You won’t find any Balrogs here!
   • Interest Rates That Make Your Piggy Bank Smile: Currently, they offer competitive interest rates—around 4-5% per annum. Compare that to the paltry 2.7% offered by SBI, and it’s like upgrading from a tricycle to a turbocharged bike!
   • No Minimum Balance Drama: Say goodbye to fretting over maintaining a minimum balance. These accounts come with zero minimum balance requirements and no pesky monthly maintenance charges.
2. Why These Accounts Rock for Your Emergency Fund:
   • Liquidity: Need cash pronto? These accounts have your back. Whether it’s a sudden car breakdown or an impromptu unicorn adoption (hey, emergencies come in all shapes!), you can access your funds without summoning a council of wizards.
   • Security: Your hard-earned moolah is safe and sound. Axis Bank and HDFC Bank have guarded vaults, digital dragons, and probably a few enchanted goblins protecting your stash.
   • Better Returns: Think of these accounts as magical beanstalks. Your emergency corpus will sprout faster than Jack’s beanstalk, minus the giant and the golden goose.

So, my dear financial adventurer, go forth and open that high-yield online savings account. Your emergency fund will thank you when it’s time to slay those unexpected dragons!

May your savings grow like a well-watered ficus tree!

Why leave out the mention of auto-sweep which is like doubling the interest rate while still having the feasibility of withdrawing full amount without any wait time or hassles