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Emergency Fund – In What form this should be kept

Hi,

I am planning to create a emergency fund. As you are aware that the requirement of the emergency fund is that it should be readily convertible into cash. Secondly, I dont want to keep my money dead ( Eg. cash or bank account where i am getting least interest rates)

So keeping this thing in mind,kindly suggest me what is the best form in which emergency funds should be kept? 

Tarun

 

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