#AskHansi – FAQs › Category: Basic lifestyle/Protecting › Emergency fund investing
0 Vote Up Vote Down
Sanofi Session Staff asked 3 years ago

Many people suggest that you keep the emergency funds in short term liquid funds instead of FDs. What are your views on this ?

What is the best place to save or put your emergency fund?

 

1 Answers
0 Vote Up Vote Down
Hansi Staff answered 3 years ago

The difference in liquid funds and FD is due to the tax treatment. Liquid funds get indexation benefits after 3 years. Otherwise, the pre-tax returns are likely to be similar.