Banking Facilities

You've identified a genuine issue. When a person passes away, a bank freezes their account to secure the funds until the legal heir comes forward.

The good news is that the RBI now requires banks to pay nominees within 15 days once the paperwork is submitted. This prevents delays that could last for months. Just make sure the death certificate and IDs are ready so you can settle bills quickly.

Be sure to confirm a few details with Bank of Baroda before using your savings to cut down loan interest. Inquire whether the interest is compounded daily, as this method typically maximizes your savings. Also, make sure there aren't any hidden fees or "minimum balance" rules for that specific account. You want to ensure that keeping your money there truly lowers your interest without hidden fees or penalties.

You’re on the right track, but I’d be careful with the bank transfer. In India, it’s usually much safer to go directly through the SHCIL e-Stamp portal since that’s the official way to pay stamp duty. Instead of trying to force that strange account number into HDFC’s system, check the SHCIL site first; they usually tell you exactly how to make the RTGS/NEFT payment. It’ll save you from having the payment bounce or getting stuck in a delay.

Right now, FDs earn you about 6.5%–7.5%, but taking out a loan against them will cost you 1%–2% more than that. Plus, don't forget that the government taxes your FD interest, so you actually take home less than you think. Honestly, if you have the cash, it’s usually cheaper and much less of a headache to pay for the interiors upfront rather than juggle a loan and taxes.

I get why you’re feeling frustrated. The Mudra scheme is meant to be collateral-free for loans up to ₹10 lakh—that’s the official deal. So, banks shouldn’t be asking for property or anything as collateral for that amount.

Sometimes, certain branches get a bit too cautious and make their own rules based on how they feel about risk. It might be a good idea to ask them to show you the specific policy in writing. Or, honestly, you could just try another SBI branch. It really can depend on who you’re chatting with.

@ByteArjun Just a heads-up: even a tiny typo in the name can sometimes stall an NEFT transfer. Banks can be quite picky about things matching up perfectly. It might just cause a small delay, but sometimes the payment bounces back entirely. It’s definitely worth double-checking the spelling just to be safe.

SBI, HDFC, ICICI, and IDFC FIRST Bank all offer auto-sweep facilities. The interest is calculated on the fixed deposit rates created by the sweep. Minimum balances may vary for different banks. But IDFC offers more flexible options with lower thresholds.

Yes, HDFC charges some fees if you choose the auto sweep services. Additionally, HDFC charges fees for early withdrawals from fixed deposits. The threshold amount is entirely dependent on your spending and saving habits. Many set it at ₹25,000–₹50,000, hence just the additional money gets cleaned.

Regarding the hidden charges, it's advisable to consult with bank officials to gain further clarity on whether to choose this service or not.

NPS is a good option if you want tax benefits. However, if the lock-in period is your primary concern, there are alternative options available. ELSS mutual funds are a good option with only 3 years of lock-in period and also give you tax benefits under Section 80C. 
PPF is another tax-saving choice with a 15-year lock-in period, but you can withdraw a partial amount after 5 years. So managing NPS with these schemes gives you flexibility with both tax savings and less lock-in period.

HDFC, ICICI, and SBI Bank allow the opening of PPF accounts online. The current PPF interest rate is 7.1% which is the same for all the banks. Minimum Rs. 500 you need to deposit and it will go upto Rs.1.5 lakh annually.
Look for a bank known for good online service. Do some research online or visit banks' websites to compare features and choose the one that best suits your needs.