Emergency Fund - Bandhan Bank

Saket

KF Rookie
Hi there. I want to set an emergency fund for me where my objective is to keep around 3-4 months salary in a account which I can't access frequently. Money will be kept there dormant but if need arises it should have 100% liquidity.
I found that Bandhan bank is offering 6% roi on savings account, so is it fine if i simply open a sacings account and keep money there... equivalent to FD but 100% liquid?

Please suggest
 

Gigachad

KF Mentor
Hi there. I want to set an emergency fund for me where my objective is to keep around 3-4 months salary in a account which I can't access frequently. Money will be kept there dormant but if need arises it should have 100% liquidity.
I found that Bandhan bank is offering 6% roi on savings account, so is it fine if i simply open a sacings account and keep money there... equivalent to FD but 100% liquid?

Please suggest
Make a fd of that amount or us auto sweep features.
 

ShavirB

Founder
Staff member
Hi there. I want to set an emergency fund for me where my objective is to keep around 3-4 months salary in a account which I can't access frequently. Money will be kept there dormant but if need arises it should have 100% liquidity.
I found that Bandhan bank is offering 6% roi on savings account, so is it fine if i simply open a sacings account and keep money there... equivalent to FD but 100% liquid?

Please suggest
Yes, there's no problem with Bandhan Bank. And amount of upto 5 Lakhs is 100% Safe in any Bank.
 

_rohitsoni

KF Rookie
Any better option than this with almost no risk but better roi?
Split your emergency fund in 3 parts.
1. Super Liquid - get money instantly - keep 20% money here (Separate bank account)
2. Partially Liquid - get money in 6-8 hours - keep 30% money here (FDs with online redemption option)
3. Liquid - get money in 3-4 days - keep 50% money here (Ultra Short Duration Debt Fund or FDs (these days) in Bank)

I've given this split considering your emergency fund amount is substantial (more than 4-5L).

How I keep it:
50k in IDFC Bank (4% interest)
50k in ICICI Bank (3% interest)
Multiple Credit Cards
Major chunk in Ultra Short Duration Debt Fund (created this when FD rates were low😅
 
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