Alex292929
TF Premier
where do you keep your emergency funds also do you have a separate bank account for that?
-
Hey there! Welcome to TFC! View fewer ads on the website just by signing up on TF Community.
where do you keep your emergency funds?
- Thread starter Alex292929
- Start date
yolofino
TF Ace
Emergency fund is for emergency - unexpected and unplanned. So I keep some amount in cash at home and rest in high-yield savings account (separate bank) with netbanking & debit card enabled for transactions.
yolofino
TF Ace
Online FD is also a good option to park emergency funds
SiddharthR
TF Legend
Won't this bank be in more risk in case of emergency (like corona, recession,etc. not personal emergency)?
thewittypanda
TF Select
For Emergency Funds, i would suggest to keep it in Post Office with net banking enabled. It's completely safe as it is wholly owned by govt and also gives 4% interest which anyway is better than 2.75%-3% offered by the D-SIBs. Another way is you can put it in 6 months or 1 year bank FDs in the large bank say HDFC or SBI or ICICI the interest rates are up now-a-days you can also book it for longer tenures... especially if booking with FD in HDFC Bank it currently offers 7% with an annualized yield of 7.2% approx... book it online so you can break it if needed in emergency. Only 1% Penalty on interest rate you will anyway get 6% approx returns on it if you break before maturity.
emergency fund is for emergency. one should not optimise for returns, optimise for availability.
I keep it in Paytm FD, where it is easily accessible and transferable.
Should keep some in CASH and rest in easily accesible no lockin FD.
CARDBITRAGE
TF Legend
You don't need a separate account as such. Either get yourself a liquid fund or you can open a long-term FD and leave it there.
For emergency fund, I think following points are important:-
1. Liquidity- This fund should be highly liquid, as the name suggests it is meant for emergencies
2. Quantum- Ideally 3-6 months of pay
3. Returns on the emergency fund
4. Taxation- This is last point to consider, as there would be less avenues for any optimisation.
1. Liquidity- This fund should be highly liquid, as the name suggests it is meant for emergencies
2. Quantum- Ideally 3-6 months of pay
3. Returns on the emergency fund
4. Taxation- This is last point to consider, as there would be less avenues for any optimisation.
In joint account with partner ERS type
Anything happens to one rest will use the funds for family without hassle
What do you mean by ERS?
Either or survivor
Dr. Drake
TF Ace
This may sounds cliche but had park emergency funding in Gold Coins/Bars. I can sell it whenever I want. Unfortunately, I had to use it during Corona times, but I was able to get cash in minutes with no questions asked. There is no liquidity crisis because the market is extremely liquid. Rate is unimportant 1k up/down it should suffice the Job
I only have emergencies. no fund
SiddharthR
TF Legend
How much do u keep in it?
Anytime 2L?
The more u keep, more u earn
The less u keep, less u earn.
It gives 3%p.a. if someone keep 1.17L,
And interest rate increases with amount
Last edited:
CARDBITRAGE
TF Legend
My suggestion is to stay away from volatility when it comes to your emergency fund. Plus, you lose a lot of money in charges when you buy and sell physical gold, right?
thebonginvestor
TF Buzz
You may check
www.indiainvestments.wiki
Where can I park money for a few days, a few months, or a few years? - r/IndiaInvestments
For shorter durations, few days to few months; Overnight funds / Liquid funds / Money Market funds are alright. High Yield Savings Account (HYSA) are ok. If large amount, consider registered advisor.
www.indiainvestments.wiki
I keep it in cred mint and many of my friends use it. Withdrawn many times without any hassle
Similar threads
