Discussion Board

How your savings account makes you POOR


Total 78 messages Pages | 1 | 2 | 3 | 4 | 5   Older >
sanjay oswal
Theoratical analysis ( Tools to Fool)
by sanjay oswal (View MyPage) on Jul 23, 2011 01:09 PM

All the above said things are more or less theoratical. I agree you lose money because of inflation factor but if you need money on SOS basis you need at least that amount in saving bank. Moreover there is hardly any mutual fund or other instrument that gives you guaranteed returns more than 10% except for a few fixed deposits now a days. As for calculation of 30 % tax deduction, I don't think much of Indian middle class falls into this. I still find FD's as the surest way of investment. The only people who compare the returns with FDs are the agents of various MF cos and Insurance who have devised this tool to fool people.

    Forward  |  'Report abuse' disabled by moderator
Dipak Bose
It is not so important
by Dipak Bose (View MyPage) on Jul 20, 2011 06:06 PM

The author is talking about non-issues.
The most important issues are:
(1) how the foreign banks are charging account maintenance charges of Rs.2500 every quarter if the balance falls below Rs.10,000 even for a day.

(2) How various banks and finance companies like TATA-AIG are cheating people by offering savings-cum- lifeinsurance scheme, which are neither savings nor life insurance.

In these schemes, you will get the same money after 5 years without any return. If you die before 5 years, your relatives will get only half of what you have deposited.


    Forward  |  Report abuse
rrrr
3 months salary need to be maintained in highly liquid instrument
by rrrr (View MyPage) on Jul 20, 2011 10:12 AM

Before we go mad on savings or buying some thing, make sure that you have atleast 3 months salary maintained in some highly liquid instrument. This is required for sudden emergencies ,sudden expenses etc

    Forward  |  Report abuse
Prasanna Thyamagondlu
Lose-Lose?
by Prasanna Thyamagondlu (View MyPage) on Jul 20, 2011 09:38 AM

You cannot invest Rs. 100 on property. You need Rs. 50 lakh plus reg fee taxes in most major cities. Now your EMI is more than 10%. Even if earning 50 Lakh is not a far reach, one would have paid 1 crore for paying off a 50 lakh loan. Now try to rent it. You may get less than savings interest as rent. Now try to pay taxes and add the house/apartment maintenance fee (Rs. 5000 plus per month). Try transferring/selling property. Now look who is the loser? Think of risking your money in stock market at your retirement. Do you feel cheated now that Indian Govt has sold itself to private interests. Yes... Blame your self for the asking for progress. Which is better Capitalist India sold to MNCs with huge inflation OR socialist India with less inflation?

    Forward  |  Report abuse
myfather
How your savings account makes you POOR
by myfather (View MyPage) on Jul 20, 2011 09:37 AM  | Hide replies

Regardless you keep the money in bank or your,TIJORI in home.. the inflation is going to effect the principle amount!

    Forward  |  Report abuse
Prasanna Thyamagondlu
Re: How your savings account makes you POOR
by Prasanna Thyamagondlu (View MyPage) on Jul 20, 2011 09:42 AM
Effect of Black money getting white & common man's incompetence to get in par?



   Forward   |   Report abuse
myfather
Re: Re: How your savings account makes you POOR
by myfather (View MyPage) on Jul 20, 2011 09:52 AM
and what doest that mean!

   Forward   |   Report abuse
myfather
Re: How your savings account makes you POOR
by myfather (View MyPage) on Jul 20, 2011 09:39 AM
It only increases if the interest rate is more than the accumulative value of tax and inflation rate!

   Forward   |   Report abuse
Anil Sood
S/B Interest 4% not 3.5%
by Anil Sood (View MyPage) on Jul 20, 2011 09:24 AM  | Hide replies

It is shame that author does not know that the saving bank interest is raised to 4%


    Forward  |  Report abuse
RAKESH JAGGI
Re: S/B Interest 4% not 3.5%
by RAKESH JAGGI (View MyPage) on Jul 20, 2011 09:43 AM
U HAVE A FUNDAMENTAL RIGHT TO BE STUPID but u r not obliged to display it to all of us. Point here is the calculation and logic. Wether int is 3.5 or 4% or anything less than (inflation TAX )then one is losing money.
Get the point, anil !

   Forward   |   Report abuse
Anil Gupta
Re: Re: S/B Interest 4% not 3.5%
by Anil Gupta (View MyPage) on Jul 20, 2011 01:59 PM
I agree with you Rakesh. The article's point of focus is the inability of savings bank account to even beat inflation and not the actual percentage.
Thanks for your inputs.

   Forward   |   Report abuse
Ashok Kumar
Re: S/B Interest 4% not 3.5%
by Ashok Kumar (View MyPage) on Jul 20, 2011 09:35 AM
Even at 4%, does it make sense to park too high a value in savings accounts?

   Forward   |   Report abuse
rrrr
Re: Re: S/B Interest 4% not 3.5%
by rrrr (View MyPage) on Jul 20, 2011 10:18 AM
you need atleast 3 months salary to be in highly liquid instrument. This is required for sudden emergencies , sudden expenses etc.

   Forward   |   Report abuse
Anil Gupta
Re: Re: S/B Interest 4% not 3.5%
by Anil Gupta (View MyPage) on Jul 20, 2011 02:00 PM
I don't think it makes sense to keep money at 4%. You should invest in some other intruments where you can at least earn 10% or more.

   Forward   |   Report abuse
Sadhna jain
Comment
by Sadhna jain (View MyPage) on Jul 20, 2011 09:08 AM  | Hide replies

Very true and impressive explanation. The crux of the article is to invest in options which give either 10% or more returns. Sadhna Jain

    Forward  |  Report abuse
Anil Gupta
Re: Comment
by Anil Gupta (View MyPage) on Jul 20, 2011 02:01 PM
Thanks Sadhna..
I appreciate your response.

   Forward   |   Report abuse
Anurag Srivastava
Re: Comment
by Anurag Srivastava (View MyPage) on Jul 24, 2011 03:51 AM
Sadhna... Please let me know option if you parked your money and get return back. In 2007 one agent from Birla Sunlife promised me that i will get 10 % return. Now my investment remains 30% of total investment 70% fly away like agent promise. In SB at least you get 3% and your money will not vaporized. You earn money to make life comfortable not for putting in Mutual fund/life insurance which never returns.

   Forward   |   Report abuse
Total 78 messages Pages: | 1 | 2 | 3 | 4 | 5   Older >
Write a message