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News From Press Liquid funds vs savings account: Where to park your emergency fund?

Liquid funds vs savings account: Where to park your emergency fund?

Source: ET Nov 13, 2017

For financial security, having a contingency fund that can take care of one's expenses for 3-6 months is a must. The contingency fund can help one tide over short-term loss of income—due to loss of job, long leave because of illness, a hit in business, etc.

It can also help meet unforeseen expenses like medical situations not covered by medical insurance, among other things. Now, the key question is, where should you put your money to create a contingency fund?

Fall in returns from liquid funds

Liquid schemes were the obvious choice for building a contingency fund. They used to generate significantly higher returns— around 8%—compared to 4% given by the ordinary savings bank accounts.


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1 Comment
Prashant · 10 months ago
Wow...difference between liquid fund and savings account is very low? When it comes to direct schemes and regular scemes is even lower but you are bombarding ideas that direct schemes are better. You also promote cost effectiveness and want the investors to save all the cost possible but when it comes to difference between liquid and savings bank account, you say it is marginal. Shame shame shame
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