Can I keep my Emergency fund in Saving bank account ?

POSTED BY anil kumar ON August 3, 2013 11:35 am COMMENTS (6)

I have accumulated a sum of 4-5 lakhs in savings account, which i am seeing as my emergency fund also.

Pl’s guide is it advisable to keep this sum in savings account.If no then how to invest the amount and where to have an emergency fund as well. I dont know when i would need the money, as I am bachelor and have two sisters to be married soon.

6 replies on this article “Can I keep my Emergency fund in Saving bank account ?”

  1. Dear Anil, please keep the money in FD only. Return for such short term is not important but safety of your basic principal is the utmost priority here.

    Thanks

    Ashal

  2. Dear Anil, can you quantify this SOON? I mean after what time you need money?

    thanks

    Ashal

    1. anil kumar says:

      Thank Ashal for replying.
      It would be minimum 6 months.

  3. nsabhyankar@gmail.com says:

    1. You can also keep a part of the emergency fund in a liquid fund. You can redeem the fund units in a day or two. Quantum liquid fund is a good option to consider.

    2. Do not just mentally see the funds as emergency fund. Consider opening a separate savings account with auto FD option as dear Ashal has suggested. Try to avoid having the emergency and day to day expense funds in the same account. It would take self control and discipline not to dip in the emergency fund unnecessarily.

    I suggest you should plan your budget for the marriages and the amount you wish to maintain as the emergency fund. Separate it out.

  4. Dear Anil, please convert your existing bank account to sweeping Fd account & your money ‘ll be converted to Fds automatically & you ‘l start earning higher rate of interest. In case of need, you can get back your money with out any penalty.

    thanks

    Ashal

    1. anil kumar says:

      Thanks Ashal for replying.

      Pl’s suggest, as few friends of mine are advising me to invest in Debt Fund.

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