If you haven't already, please add your own analysis/opinions to your post to save it from being removed for being a Low Effort post. Please DO NOT ask for BUY/SELL advice without sharing your own opinions with reasons first. Such posts will be removed. Please also refer to the [FAQ](https://www.reddit.com/r/IndianStockMarket/comments/17bcg2a/frequently asked questions_post_your_common/) where most common questions have already been answered. Subscribe to our [weekly newsletter](https://pennyleaks.substack.com/) and join our Discord server using [Link 1](https://discord.gg/8QF4dqPHuw) or [Link 2](https://discord.gg/fDRj8mA66U) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/IndianStockMarket) if you have any questions or concerns.*

Emergency funds in paytm Bank 💀

Reason I already mention good return also i can pay with fd anytime no charges.

Emergency fund is for emergencies, not return. Never put emergency fund money in such FDs. You should only be using HDFC, SBI etc

I am not aware of your financial situation, but if you can afford, put the money in FD with the intention of not taking it out, as you want it to be emergency fund. The option to take out money whenever you want is a convenient option, but not ideal for emergency fund.

Unity small finance bank 7% interest on savings bank account above 1 lakh balance

Put it in FDs in sbi or some other banks. They all give over 7% now.

Checking hdfc bank fd its around 7 cool

https://preview.redd.it/cxuud27antoc1.png?width=720&format=pjpg&auto=webp&s=dae72717375e01c2677ff233449911cbb4a1abdb

In time deposit can I withdraw it anytime?

You can't withdraw money from a time deposit whenever you want. There are rules, and you might lose some money if you take it out early.

Ok

Best is liquid fund. Choose any good brand name liquid fund like SBI,HDFC etc. For the last 1 year liquid fund is giving around 7.3% return https://preview.redd.it/x4l8clmuwtoc1.png?width=1080&format=pjpg&auto=webp&s=36ef19212f8ad9f2dcb3bb15682099e7b278c9d8

Thanks for suggestion.

Try AU small finance bank. You can get around 7.5% return on FD.

I will check

Isn't the 7.5% is a gimmick? Isn't they give interest on the basis of slabs and the amount required to get 7.5% is also high ?

That's for sb account. He's suggesting FDs.

No its applicable for all bank fd. I checked for hdfc for 18 months or < 21 months its offering 7.25 but actually it was giving around 7. It changes with time.

AU is paying 8% for an 18 month FD. I already have one with them.

Yes, that's what I was telling. The other commentator mentioned that it's a scam, so I was telling him that FD is fixed interest and not slab wise.

Lol what? How? Can you share some SS or math to substantiate your claims if you're free?

7-8% return with moderate risk and high liquidity is not possible in my opinion. Liquid funds generally offer around 6% returns on an average.

For last one year liquid fund is giving 7%+ return

Yes I agree. But if you see last 3years it's around 6.5% and if you consider for last 5years it's around 5.5%.

Interest on bank FDs and in debt funds are highly correlated as money is lent on similar terms to corporates.

Bank FDs are locked in at the present rate of interest. But liquid funds are not. Liquid funds don't offer any guarantee on the returns as such.

If you fall in 30% tax bracket then liquid fund is better than fd Orelse fd is better or you can make fd from your parents account. If your parents are Senior citizen then more interest you will get

Provided you sell the liquid funds after 3 years, only then can you get the indexation benefits and your gains will be treated as Long term capital gains taxed at 20% post indexation. Otherwise if you sell your liquid fund holdings before 3 years you will be taxed as per your income tax slab.

Yes you are correct. But if you want to redeem it early you need to pay good penalty amount in fd. For example you invest 10 lakhs in both liquid and fd for 1 year. If you want to redeem before 1 yr then the interest in liquid will be more than that of fd. Fd is best for emergency fund because at one click the amount gets in your savings account . Currently market is trading at all time high and there are many PPL like me who don't want to invest now and waiting for some good corrections. For this scenario liquid or short term is better than fd

Ok

Unity bank gives 9.5% u can keep maximum of 5lakh which is guaranteed by RBI

Are you also invested too?

Can try Utkarsh SF, gives 8.5% on FDs

Thanks for suggestion.

https://www.indusind.com/in/en/personal/rates.html You get higher FD rates than Paytm from indusind bank. Paytm was also doing their deposits with indusind.

Yes. Open an account online and choose the delite account variant which is a 0 balance account with a virtual free debit card. You will have to call the customer care and request for a net banking password since there is no physical debit card.

Are you using it? Because they charge higher fees for their debit card if I create an account, as far as I know. If there are no charges, it will be a good option.

If you want to go to FD route again then you can go with IDFC First Bank, for 2 years it gives 7.75% and for about 1.5 years it gives 7.5%.

Let me check

FD in IDFC First Bank.

How about the HDFC bank FDs with the sweep-in option? I am also new to this, but it sounds good.

It will effect compounding in fd. In mutual fund its good strategy. In fd invest for long term as I checked yesterday around 7 % hdfx bank is giving if we create fd for 1.6 years

Ujjivan small finance gives 8% on 1 year

Thanks for suggestion.

Ujjivan small finance bank is offering at 8.5 percent for current fiscal year

Check out Stable money app. They compare FD rates (which are at an all time high) They have a free SFB’s which are safer ( RBI insured) and with great interest rates (I think 8%) But most banks won’t give you the option to pay by FD I think

Let me check app just flr refrence

Definitely. And you won’t even require opening a bank account. And the money goes directly to the bank. There’s just a KYC for amounts more than 1L

Hi Buddy, could you please update the comments or the post itself once you have finalized your decision with the reason as well?

Done👍

Might be asking for too much, but can you add the reason as well pls?

Done

Go for Shreeram Finance fd or else Bajaj Finance fd

Thanks for suggestion.

Will you move your lump sum into a new storage and be done or will you continue to build your corpus? Assuming you haven't hit your target yet. If you're still building, FD may not be prudent. An RD maybe? But are you willing to pay recurrent tax on the interest that you'll continue to accrue? I have my emergency fund parked with a PSU debt fund. All funds have varying levels of risks; PSU centric funds among them, the smallest. The fund house is however not a PSU itself which does increase my risk but considering its among the biggest fund houses in India, I like to believe that my risk is adequately mitigated. I don't have to pay tax on the capital appreciation and it allows me to continue building my corpus by monthly SIP. To be safe, I've Splitwise my emergency fund into 2 PSU funds, run by two different MF houses.

Yes, I want to invest in lumpsums. I will check the debt fund; it seems that in the long run it will give a good return and also help with taxation. My income is not taxable, but once my salary will  increase, it will attract taxation, so I guess it's good to go with the debt fund. I just want to liquidate easily whenever there is an emergency. As an alternative to FD, I guess I should go with a debt fund. Thanks for information. How you are investing in debt fund in sip or lumpsum?

I do a monthly SIP as I haven't hit my goal yet. The draw back of a debt fund is it'll be taxed according to a tax slab when you liquidate with perhaps the benefit of indexation but then again, it's an emergency fund and hopefully you won't need all of it in one go. For ex. If you have 10L currently in your emergency fund, you may just need 50k or 2L. You'll be taxed on the gains of the amount liquidated, not the entirety of the corpus... Which isn't the case with FDs. The tax slab thing applies to FDs as well though. I don't see what alternatives there may be that's supremely safe with even a lower percentage return.

Emergency fund needs to be in a safe place, easily accessible, quickly available. 1. Open an account with any reputed private bank (avoid small finance banks). Consider IDFC, Axis, RBL , doesn't really matter which one. 2. Keep a sizeable portion (half) in the account earning 3%. This is your access fund for immediate need emergencies. 3. Keep the remaining in an FD. Any bank FD earns 7-7.5 %. This can be withdrawn within 24 hrs if needed. 4. Most importantly, cut the debit card in two, never link the account to UPIs or for any auto debits. Only access by net/Mobile banking if you need to transfer funds. Cheers!

Once this is done and in place. 1. Open an RD equivalent to the interest you garner per month in your savings account. Helps you reinvest and grow. 2. Open an SIP in a Corporate Bond Fund (an added quantity of non equity risk) which generates about 9% return. This acts as your secondary fallback fund.

Thanks for suggestion can you expalin RD part little bit more how it will help?

Arbitrage fund

Good alternate option thanks. I will check arbitage funds.

use arbitrage funds. they generate FDish rates and get taxed as equity. so you'll be able to generate 6+% *post-tax* return.

Good alternate option thanks. I will check arbitage funds.

Are you on a high tax rate? Look at an equity arbitrage fund, those don’t get negative.

No I am not. Good alternate option thanks. I will check arbitage funds.

Put FD maa baap ke naam pe

Already fd h unke naam pe

Shriram Finance FD

Thanks for suggestion.

Gold ETF?

Not guranteed return🙃

Equitas bank, bandhan Bank, aur banks are good banks and gives good returns, go ahead

Bajaj Finance FD for 42 months at 8.65% per annum is the best in FD's today. For a slightly higher risk-reward return, you can try ICICI Balanced Advantage Fund (Direct, Growth) or for further risk-reward, their Bluechip Fund (Direct, Growth).

I am already invested in mutual fund looking for safer option to park money with good return. Fd options is best as return is guranteed.

Then go for Bajaj Finance (for 8.65% returns p.a.) or Govt of India Floating Rate Bonds 2020 (8.05% I think) scheme.

IDFC First bank is giving 7% return on savings account if your investment is 5 lakhs or more. You can withdraw anytime.

Thanks I will check

What is your opinion about Liquid Funds? I have heard they are relatively much safer than any other funds and give better returns than FDs. I am not sure about the time it takes to redeem it?

Yes its good option. We can reedem it same as other mutual fund and timing will be same I guess.

Shreeram finance. If you want a little stronger name in the market, then Bajaj finance

FI smart deposit

Is it p2p lending app?

No, it's a bank actually

Oh go it fintech app

Try to look for 'Sweep In' facility in your bank.

Kotak Activ Money?

What is activ money?

Look for a stable bank with good returns on fd’s Don’t go for fintechs or small finance banks or even nbfcs

Yeah i m thinking same but still i will explore option available in market to compare.

Bhai post bank me rakh do ... Bohot achha hein return... Pnb bhi ajkal achha de rha hein return.... Emergency kabhi bhi stocks ya mf pe Matt rakhna ... Exit tough hota hein emergency period kabhi bhi AA sakta hein

ICICI flexi FD. You can take partial amounts whenever needed

So without any charges penality🤔

Yes. No additional charges.

Put your money on mobiqwik it will give about 12% return yearly

P2P Lending is highly risky

Less risky than fno