• Dinesh Shirvaikar

    With the taxation of 30% (for those in this bracket), does it still make sense to keep money in liquid/short term debt funds, if you want to redeem them at any time in an emergency? 

    • Dinesh, Let us ask these few questions to ourselves. 1) If u invest in SB account, you would get 4% p.a. interest 2) If you move them to bank FD, you can get 4% to 8% p.a. depending on the tenure 3) If you invest in liquid / short term funds, you would get 6% to 8% p.a. interest. Which one you choose? All these can be withdrawn with 1-3 day of redemption period.

  • Ash

    Good article

    Keep only monthly expenditure in savings account.

    If you go not want to put in liquid fund and want highest liquidity, at least put in bank which gives good interest on saving account like DBS 7%, yes bank/kotak up to 6%

    Even if your money lying idle you will get 50% more than usual saving account.


  • Akash

    I want to put money in liquid funds but i am afraid with its tax …or any other charges that come along with it.i have heard that they charge 33 percent tax…so i get insecure abt my capital also.

    Could u plz help me in overcoming me this fear.

    • What about SB a/c (beyond Rs 10K) or bank FD? All these would still attract tax for short term. What I am saying is post tax, how we can get benefitted instead of keeping them in our SB account

  • b vidya

    Nice Article Sir

    Thank you

  • Rajan Arora

    Thank You Suresh for this information

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