Hi all,
Need some suggestions.

I am starting to build my emergency fund and a holiday fund.
Holiday fund to keep saving for my trips.
I travel to my hometown once every quarter which equals to around ₹20000 in expenses
My in hand salary is ₹1.1 L post tax. I plan to allocate ₹20000 to EF and ₹5000 to Holiday fund (HF) (agree it cannot fully fund my quarterly trips but can help to some extent ).
Can anyone please help with suggestions on how to park my amounts to build corpus for EF and HF

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For EF park it in liquid mutual fund. Put 15k there and have 5k as cash in bank. And for HF also put it in another liquid fund. U can withdraw money and get it in ur account within 24 hours.

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For hf liquid funds are good but keep taxation in mind, even if it is below the taxation limit you'll have to file it without fail.
Ef keep it in bank account till you reach 100k then switch to short term FDs and then you can start parking the rest as you prefer.
This is just my opinion, do as you deem fit. All the best.

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Create a separate bank account for emergency fun , don’t take atm card/internet banking on that account, the only way to withdraw money should by going physically or may be cheque

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Keep an FD for emergency funds as Saving rates are 2.75%

Even if you break a long term FD you will get around 5-6% p.a

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Also suggest where to park and what %.

Will definitely help me a lot

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