Emergency

Fixed Deposits

• At times, 3 year FD gives more than 5 year FD
• Cost of about 0.5 % of interest for an early exit from FD
• It is worth to pay that and keep the money in an FD rather than a savings deposit that gives you an interest of 2.75 %, as in July 2020.

Mutual Funds

• Choose a fund that is conservative and not aggressive.
• You should not buy a product for your emergency cell based on just high returns it has given in the past.
• Check that the top holdings of your debt fund is in AAA-rated bonds.
• You may even move your emergency money to a conservative balanced fund.

Finance is not just about numbers, it should work for all the people in the house and must look after individual preferences, fears and goals.