Distribution of 10L for FD

[raviraaj16594]

Planning to put aside 10L for emergency situations in FD. Can anyone suggest how can I split the amount and the duration so that if required I hv some amount at my disposal in a few months time?

 

[17ysaurabh]

Step 1:
If I would be in your place, I would split it into 3 parts: 4 lakh + 3 lakh + 3 lakh

Since RBI only insures up to 5 lakhs in a bank (both principal + interest).
Therefore, this will help me get both my principal and interest amount in case of issues with the bank.

Step 2:
Find 3 private banks which are giving high-interest rates and invest one part in each of them.

Step 3 (Optional):
You can also try FD laddering.
Explanation:
It means you invest 1 part for 1 year FD, 2nd part for 2 year FD and 3rd part in 3 year FD.
Now,
After 1st year, one FD matures if you need to use it or else you can reinvest it for 3 years FD.
After 2nd year, the second FD matures if you need to use it or else you can reinvest it for 3 years FD.
After 3rd year, the third FD matures if you need to use it or else you can reinvest it for 3 years FD.
Post that every year one of your FDs matures and you can use the amount if needed.

Tips:
If you want to invest for emergency situations, then that means the money should be liquid. You should be able to get it back in 1-3 days.
For such a case, there are platforms like the INDMoney app which provides instant withdrawal FDs. You can check them.

 

[raviraaj16594]

Thank you

 

[17ysaurabh]

Thank you

Happy to help!

 

[प्रफूला_56]

Step 1:
If I would be in your place, I would split it into 3 parts: 4 lakh + 3 lakh + 3 lakh

Since RBI only insures up to 5 lakhs in a bank (both principal + interest).
Therefore, this will help me get both my principal and interest amount in case of issues with the bank.

Step 2:
Find 3 private banks which are giving high-interest rates and invest one part in each of them.

Step 3 (Optional):
You can also try FD laddering.
Explanation:
It means you invest 1 part for 1 year FD, 2nd part for 2 year FD and 3rd part in 3 year FD.
Now,
After 1st year, one FD matures if you need to use it or else you can reinvest it for 3 years FD.
After 2nd year, the second FD matures if you need to use it or else you can reinvest it for 3 years FD.
After 3rd year, the third FD matures if you need to use it or else you can reinvest it for 3 years FD.
Post that every year one of your FDs matures and you can use the amount if needed.

Tips:
If you want to invest for emergency situations, then that means the money should be liquid. You should be able to get it back in 1-3 days.
For such a case, there are platforms like the INDMoney app which provides instant withdrawal FDs. You can check them.

Paytm also provide liquidity

 

[Gigachad]

Planning to put aside 10L for emergency situations in FD. Can anyone suggest how can I split the amount and the duration so that if required I hv some amount at my disposal in a few months time?

Break this into 3or4 pieces & put them on SFB with different person account in family

 

[cardy]

I would recommend @17ysaurabh 's answer. Going to the bank route is more safe than indmoney etc third party apps.

Besides you can put some of it in mutual funds also.

 

[jeenahaiabhiii]

Planning to put aside 10L for emergency situations in FD. Can anyone suggest how can I split the amount and the duration so that if required I hv some amount at my disposal in a few months time?

1. **Allocation:**
- Split the 10 lakh into three parts: 4 lakh, 3 lakh, and 3 lakh.

2. **Investment Options:**
- Consider investing in different small finance banks:
- Invest 4 lakh for a 9% interest rate.
- Invest 3 lakh for a 9% interest rate.
- Invest another 3 lakh for a 9% interest rate.

3. **Private Bank Option:**
- Private banks offer a 7.75% interest rate.

4. **Comparison Analysis:**
- Compared rates from 50 different banks and found that for a 5-year period, the highest return is expected.

5. **Liquidity Consideration:**
- Be mindful of liquidity; if you withdraw an FD before the maturity period, a penalty of 1% is applicable.
- Always inquire about pre-mature penalty terms before making any investment decisions.

 

[jeenahaiabhiii]

Planning to put aside 10L for emergency situations in FD. Can anyone suggest how can I split the amount and the duration so that if required I hv some amount at my disposal in a few months time?

 

[financial12345]

In suryoday premature charges are there or not

 

[Pahulpreet Kaur]

Split into 3 and you can consider Unity Small Finance Bank as well it offers 8.75%p.a. for 6 months

 

[Tax with Ria]

Paytm also provide liquidity

Kindly stop using Paytm after Feb 24, as RBI deregularised paytm due to non compliance and has been ordered to not accept any new customers.

 

[jeenahaiabhiii]

In suryoday premature charges are there or not

In Suryoday, if you withdraw prematurely, the bank will repay the principal amount along with the interest, either at a reduced interest rate or with a deduction of a 1% penalty.

 

[jeenahaiabhiii]

Split into 3 and you can consider Unity Small Finance Bank as well it offers 8.75%p.a. for 6 months

After comparing Suryoday and Unity, the primary difference lies in their offerings, with Suryoday providing a 9.1% interest rate for 5 years and Unity offering 9% for 1001 days. For an investment of ₹1,00,000, Suryoday yields a profit of ₹45,500, whereas Unity's profit is ₹24,682.

Calculating on a daily basis, Suryoday provides a profit of ₹24.93 per day, while Unity offers ₹24.66 per day. The marginal difference favors Suryoday, and hence, I choose Suryoday over Unity for the investment.

 

[theraj0007]

Planning to put aside 10L for emergency situations in FD. Can anyone suggest how can I split the amount and the duration so that if required I hv some amount at my disposal in a few months time?

YOU CAN GO WITH STABLE MONEY APP
DIVIDE YOUR CAPITAL FOR LESS THAN 5 LAKHS AND FD EACH IN A GAP OF 6 MONTHS .