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How to manage emergeny fund

Hi all,

I read quite a few articles about how important to have emergent fund for at least 6 months and it should be easily accessible. I completely agree with it and creating such fund is my new year resolution 🙂

I plan to create 2 emergency fund.

Fund – 1 : If my regular salary income gets disturbed, I should have 6 months fund which will take care of my home loan, SIPs, insurance installments and bare minimum monthly expenses.

Fund – 2 : For any medical, family emergency.

My query is, where to invest the amount to create such funds. Simple mode could be having 10 year SBI FD at 9.25% rate. But this may not be the best option from taxation point of view.

Need your expert opinion. Also any suggestions/modifications about my plan to create 2 funds is also welcome.

As always, thanks a lot for your cooperation.

Best Regards,
Kulkarni P

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