Brajesh: Hey Rajesh, How are you? Why are you looking so tensed?
Rajesh: Hey Brajesh, I am stuck with my CBI getting low day by day, and I don’t know why?
Brajesh: CBI? What does that mean?
Rajesh: CBI is Cash Bank Interest. The interest that a bank pays us on money in our accounts
Brajesh: Oh, that’s CBI. Yeah I know about that. Hey, I have a suggestion for you regarding your CBI
Rajesh: That’s nice. Tell me about it
Brajesh: You can improve your CBI on idle cash lying in your saving account, as idle cash makes you lose interest.
Rajesh: Oh, is that?
Rajesh: But, How do I improve my CBI without compromising liquidity or taking higher risks?
Brajesh: There are many ways you can improve it. For example:
You can open a fixed deposit, to deploy your saving/current bank balance. But, Rajesh do keep in mind that, the rates for longer term deposits are little higher than small term deposits.
Brajesh:Also, have you have ever heard about Mutual funds?
Rajesh: Yes! I have seen some advertisement on TV
Brajesh:Yeah, so Mutual fund is another smart way of earning more income without compromising on liquidity.
Rajesh: Thank you Brajesh. I will definitely look into these options to improve my returns.
Brajesh:You’re welcome. And thank you, I learned a new term today CBI- Cash Bank Interest.
Food 4 Thought
“Owning a home is a keystone of wealth - both financial affluence and emotional security.
DID YOU KNOW
India is home to more than 20 stock exchanges which also include regional stock exchanges.