Dear Merks, in your own words, By GOD’s grace, no emergency strike, it’s a far higher return than what you may earn by putting emergency fund here and there.
Thanks for the advise friends, i have another doubt.. i intend to use this fund only in emergency and lets say with gods grace i didn’t have any emergency for next 10 years , leaving the money in SB and liquid fund ,can it beat inflation or i have to top it up regularly to compensate loosing money value? or any other way where i can leave the money and forget about it and it grows by itself and also readily available ??
@Raja: FD comes with inherent TDS. Liquid fund scores here.
Moreover, making 1 FD of 5 L is wrong. If at all we need to go with all FDs, it is best to go for 3-4 FDs so that we can break a single FD and continue to earn interest on others.
Make FD for 5L for long duration. In case you need the money, you can easily break the FD. In the event that you dont need the money, you will still get a high ROI at the end of the FD term
thanks for the suggestions.. i have decided to keep 2L in SB and 3L in liquid fund 🙂
Dear Merks, in your own words, By GOD’s grace, no emergency strike, it’s a far higher return than what you may earn by putting emergency fund here and there.
Thanks
Ashal
Thanks for the advise friends, i have another doubt.. i intend to use this fund only in emergency and lets say with gods grace i didn’t have any emergency for next 10 years , leaving the money in SB and liquid fund ,can it beat inflation or i have to top it up regularly to compensate loosing money value? or any other way where i can leave the money and forget about it and it grows by itself and also readily available ??
Thanks
Raj
Invest in liquid funds. They are giving around 9% interest.
If you want to invest in FDs, break to 4-5 FDs.
@Raja: FD comes with inherent TDS. Liquid fund scores here.
Moreover, making 1 FD of 5 L is wrong. If at all we need to go with all FDs, it is best to go for 3-4 FDs so that we can break a single FD and continue to earn interest on others.
Make FD for 5L for long duration. In case you need the money, you can easily break the FD. In the event that you dont need the money, you will still get a high ROI at the end of the FD term
Dear Merks, 2.5L Rs. in SB account and 2.5L Rs. in Liquid fund.
Thanks
Ashal