Where do you keep your emergency fund?
Currently most of my emergency fund is in FDs. Was planning on storing in multiple options. FDs are not even beating inflation these days.
Have seen people keeping multiple tranches of emergency funds. combination of Multiple FDs in different banks, some in Liquid funds and some in bank account.
What’s working for you? Need more insights on this?
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Since iam young iam going bit aggressive style investing in Emergency fund by Sip in Midcap 150 index Fund. By Keeping in my mind it takes around T+1 day to get money. But it's generating minimum returns from 15-25%.
Well I like your spirit.
But I would highly advice against keeping your emergency fund in Market linked assets. There is a reason it’s called emergency fund.
But it also depends on if you have any liabilities.
Yes I agree it's bit risky. That's why I choose the least risky Passive Mutual fund index compared to other equity based investments.
The fact about getting no interest once you remove prior to tenure, is false. You do get some interest but not as much. I've made an FD in my dad's name as hes senior citizen - I'm getting 8.6% interest which I'm fine with given it's an emergency fund and not really an investment
Fd, and some amount in Bank salary account