InvestorQ : In the light of the Yes Bank fiasco, do you suggest any specific strategies with respect to bank accounts and deposit maintenance?
NISHA Nayak made post

In the light of the Yes Bank fiasco, do you suggest any specific strategies with respect to bank accounts and deposit maintenance?

Answer
image
1 year ago
Follow

There are some simple rules that you can follow to stay safe and I am summarizing them as under in points.

· Ideally, for each family member, restrict amount to Rs.5 lakh, which is the outer limit for deposit insurance

· You can even have joint accounts in all these cases, but ensure that even if you are a co-holder, the other person is the primary account holder

· Benchmark to SBI FD rates. If another bank is offering 30-40 bps above that is ok but be cautious of any bank that offers 125-150 bps spread above the SBI rate.

· Split FDs in the names of family members, as per their income and reduce the risk of illiquidity (this will come handy during turbulent times).

· Make it a point to open an FD with either or survivor mode, so that in case of a medical emergency, the liquidity aspect can be taken care of

· You can take the risk of higher returns above the SBI rate, but keep that risk limited and monitor the fundamentals of the bank closely.

1 Views