We are going to talk about how to get maximum return on unused Money, that is, your Savings Account and Current Account Balance:
There are three main methods we are going to discuss:
- Savings Accounts with High Interest Rates
- AU Small Finance Bank
- Slice App (Slice Small Finance Bank)
- IDFC Bank
- Liquid Funds
- FD OD
Method 1: Savings Accounts with High Interest Rates
Method 2: Liquid Mutual Funds
Method 3: Making FD and then taking a Loan Against It.
How does each of this method work:
Let’s start with Method 1:
Savings Accounts with High Interest Rates:
There are a few banks which offer very high interest rates on Savings Account.
We need to just open Savings Account with them and keep balance in the Savings account.
AU Bank has a slabwise rate but if you keep balance of around 20 lakhs, you will get approx 5.5% to 6% per anumm.
Slice has a fixed rate of 5.5% per year for any amount of balance.
IDFC Bank also has Slab wise rates similar to AU Bank.
But as always, there is a very tiny risk associated with these banks. These banks are Private Banks and a balance of up to on 5 lakhs per bank is insured by the Government of India.
Method 2:
Liquid Mutual Funds:
Liquid mutual funds are investments which are very liquid in nature.
They just need 1 day to be withdrawn. These funds have historically given a return of 6% to 7% per year.
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Method 3:
FD OD Method
This is one of the best kept secret methods, used by Marwadi businessmen to earn maximum returns on their money.
In this Method, you keep a FD with the bank for the highest interest rate period and then you take a loan against this FD.
This Loan is a Over Draft type of Loan.
Which means you will be charged interest only when you use the amount.
This is what business people use to get maximum interest on their Current Account money. This is generally the best way to keep Working Capital.
For example:
If you make a FD of 1,00,000 (1 Lakh Rupees) at 7% in any bank, they will offer you a FD OD Loan of 90,000 (90 Thousand Rupees) at 8% Interest rate.
This means there is a spread of 1% in the Interest Rate that you get vs the interest that you pay.
But you only pay a interest when you have used the amount.