DizzyJellybean

Stealth

Where to invest emergency fund

I have lump sum of 3.6 lakhs in my savings account. Pls suggest where to invest it.

I am thinking of 50% of lump sum invest in FD and 50% of lump sum in liquid funds.

9mo ago

Find out if you are being paid fairly.Download Grapevine

ZippyBoba

Stealth9mo

When will you be needing this? And if you do, how much would you need?

Do you have absolutely zero emergency corpus at the moment?

Whatever your answer, FD is not really liquid (and hence not a smart idea)

DizzyJellybean

Stealth9mo

I will only need this only in case of emergency like layoff, medical emergency, etc. I have extra 1.5 lakhs in saving account.

And what is the issue with FD? We can immediately break our FD, right?

TwirlyLlama

Stealth9mo

Yes traditionally FD was not considered liquid . But now with online banking the proceeds are within your saving account in seconds . So as long as that is possible it can be considered for liquid funds. Or alternatively- take an OD against that FD , you will have access to liquid funds . ( interest would be charged only if you use it)

QuirkyPretzel

Stealth9mo

IMO one should have some emergency fund as absolute savings and not invest anywhere.

If you still want to invest then invest where you can take it back immediately (within seconds or minutes).

FloatingBiscuit

TCS9mo

I had use ICICI bank account for emergency fund. In ICICI, you can move this amount to "linked account" which is kind of dynamic FD.
3.6+your current account balance, It will show as your account balance in the app. But 3.6 amount will give you returns for FD and can be withdrawn anytime.

Check with your bank if you have any other. If this feature is there

SillyMochi

Stealth5mo

LiquidBees

Discover more

Curated from across

Personal Finance6d

by WobblyBananaNatWest Group

Best way to keep liquid funds.

I wish to create an emergency fund for my 6 months expenses. Let's say around 3 lacs. Should I opt for FD or some savings account with a high interest rate?

Personal Finance3mo

by ZestyNoodleStealth

how to invest

i have around 80k in savings rn, how much of that should i keep liquid and how much should i invest, also where to invest?

my current salary is around 80k as well

2.4K

Personal Finance14mo

by FluffyNuggetPlivo

[Thread] How much are you comfortable keeping in ur Bank account?

As u guys know only 5L is insured, I want to know how much you’re comfortable keeping in account? Maybe someone’s living expense could be 10L a year and they are okay with keeping that as emergency fund liquid, just an instance. But give...

Top comment

At least 3 months of expenses, plus some emergency funds. Unless you have an account in some obscure small bank, don...

Ask a question on Grapevine.

Get the app on Android or iOS.

Privacy Terms

Guidelines Help