Savings allocation

Heres my savings allocation as % of total savings (excluding 401k), Ive been using this for the past couple of months with some degree of flexibility of course :

• Cash savings : 47% (i will probably reduce this substantially by end of the year, probably re-evaluate this one around Aug-Sep)
• House : 23% (saving up for house buying)
  
• Retirement: 30%
• Undecided: poker earnings (right now its kind of an even split between cash savings and retirement)

I got a nice boost this month as the Indian stock market sky rocketed and the Rupee appreciated versus the dollar as well.

11% annual interest !!

Tata Motors, one of India's biggest and most respected corporation is offering a fixed deposit scheme offering upto 11% interest (compounded), thats a huge huge huge deal and right now I am scrambling to put together as big a war chest as possible for this. Unfortunately it doesnt seem I can come up with more than 1.5k, without dipping into my cash savings. So what do you think should I be dipping into my cash savings to try and put as much into this as possible?

Tata Motors FD Interest Rates reduced from April 16th,2009

Effective Yield on 3 years Deposit reduced from 13.5% to 11.83%

Tata Motors has announced reduction in Interest rates on its ongoing and hugely popular Fixed Deposit Scheme with effect from April 16th,2009.

Under the Quarterly Income Plan the Interest Rates on 1 year deposit has been reduced by 0.75%, on 2 Year deposit by 1% and 3 year deposit has been reduced by 1%.

Additional Interest to Senior Citizens, Tata Motors Shareholders and Employees of Tata Motors has also been reduced from 0.5% to 0.25%

Other terms and condition of the Fixed deposit scheme remains same. You can read further details about the scheme in my earlier post here.

If you are a senior Citizen or Tata Motors and its subsidiaries employee or a shareholder of Tata Motors, the Effective Yield on 1 Year Deposit will be 9.84%.

Effective Yield in case of 2 Year deposit will be 10.62%

Effective Yield on 3 year deposit will be 11.83%

The effective yield on 3 year deposit will get reduced by 1.67%. Hence, if you have made up your mind to invest in Tata Motors FD scheme, it would be better if you invest before 16th April,2009.

Following are the Main Brokers / Distributors for the FD’s

•Tata Securities •ICICI Direct

•Kotak Securities •Stock Holding Corporation of India

•JM Financial •HDFC Securities

Over budget

For the first two weeks of April I am destined to go over budget... sigh !! There were a couple of factors responsible for this though

1. I live alone, and over the past 2 weeks I discovered a fab take out place, and all my meals have been coming from there :(
2. I bought several gifts for my wife.

Anyway what this means is that for the first two weeks of April, the savings accounts get only 50% of what they are supposed to get. My wife and I are also planning for a beach vacation over the memorial day weekend, and thus I expect my savings for both April and May to be substantially lower than what I planned for.

Last but not the least I decided to pay off my car loan by the end of 09. Amount needed 18k. Godspeed !!