Over the last year, i managed to save my Emergency fund. The purpose of this fund is
1. Emergency Medical expenses (which will be recovered from Medical insurance, but still has to be paid to the hospital upfront)
2. Unemployment fund.( 6 times my monthly expenses)
However, now it is rotting in my savings bank account. Is this the correct way to store the emergency fund? I guess not. So please suggest some good investment options for this savings. My requirements are very low risks and very high liquidity.
My considerations
Short term FDs , < 1year (low risk, but not liquid)
Mutual funds that invest in Debt (little risky)