#AskHansi – FAQs › Category: Basic lifestyle/Protecting › Emergency fund investing
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Sanofi Session Staff asked 4 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
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Hansi Staff answered 4 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.