Emergency fund: When sweep-in FD beats liquid fund
Synopsis Sweep-in fixed deposits and liquid funds offer better returns than savings accounts. Sweep-in FDs provide immediate access for money needed within a week. Liquid
Synopsis Sweep-in fixed deposits and liquid funds offer better returns than savings accounts. Sweep-in FDs provide immediate access for money needed within a week. Liquid funds become more attractive for holding periods around three months. Combining both options balances liquidity, returns, and flexibility effectively. Taxation differs, with FD interest taxed as it accrues and fund gains taxed upon redemption.
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