Emergency fund parking options

[vijay]

Hi All, I am looking for some suggestions on where to park emergency funds.

 

[kunaljn91]

Hi All, I am looking for some suggestions on where to park emergency funds.

Since you are talking about emergency fund, its best to keep in savings account! Rather than anywhere else!
=> Savings account which pays high interest rate (you can consider AU/RBL here)

As per the book, two things should always be ensured!
1. It should be readily liquidable!
2. It should be having almost 0% risk!

 

[kalyan.sreenivas]

20% - Savings Bank
30% - Fixed Deposit in a bank.
50% - Short Term Debt Fund

 

[SiddharthR]

Hi All, I am looking for some suggestions on where to park emergency funds.

According to me, open a FD in bank with the term giving highest interest rates and break the FD incase of emergency. A penalty will be charged but still you will get better returns than Savings account & Liquid Funds.

Penalty:
HDFC: 1% less than interest rate at the period of breaking FD.
SBI : 0.5% less than interest rate at the period of breaking FD.(upto ₹5,00,000)
1% less than interest rate at the period of breaking FD.(above ₹5,00,000)

 

 

[akshayhs]

70% liquid/debt mutual funds that can be redeemed without any penalty.
30% savings account.

 

[dipendrak1]

Which bank should I consider parking my emergency fund up to 5 lakhs as saving balance.