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Bank RD Vs Liquid Funds

Hi,

I have a requirement to pay Rs 55k towards Insurances (2 traditional & 1 Term plan) every year.

My strategy so far, was to park Rs 5k in RD for a year (@8.25%) and then pay off these with the maturity amount.

Just started to learn about Liquid funds and its annualized return being close to 8 – 9%.

So is it better to go with existing strategy of RD or should I try liquid funds?

Please note, am in 30% tax bracket.

Thanks
Raja

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