Bank Product Replacements

Last week I wrote about the RBI's freeing of savings bank interest rates. From the bank customers' perspective, this news is irrelevant. No matter how much or how little money you keep in a bank savings account, the additional income generated will be too small to be relevant. In fact, if you feel you happen to need a safe source of reasonable returns from a savings medium that is not locked-in for a fixed period, then you shouldn't be looking at a savings bank account at all. If you find yourself getting excited by the 6 per cent savings account returns that some banks have started offering, then you're doing something wrong. What you actually need is liquid funds. Liquid funds are widely used by companies and the more affluent investors, but are underutilised by retail investors. There's no reason for

This article was originally published on November 09, 2011.