Liquid Funds Vs Savings Accounts | AU Small Finance Bank
AU Bank

Liquid Funds Vs Savings Accounts

    If you are looking to invest your hard-earned money somewhere and cannot decide which option to choose, then we will try to help you with two of the options, i.e. Liquid funds and Savings accounts.

    Liquid funds are debt mutual funds where you can invest your money for a short term and withdraw it at any time you like. It means your money does not stay tied for a long time.

    On the other hand, Savings account is one where you park your savings and banks give you interests on the same.

    Let’s explore what’s better for parking your hard-earned money in the short-term:

     

    What are these options?

     

    Savings account ek aisa option hai jaha aap apni savings banks ko de sakte hai. At the same time, it gives you earnings in the form of interest.
    Liquid funds are a kind of funds wherein you invest your savings for a short term. Isse aap apni savings invest karte hai aur uspe earn bhi karte hai on the basis of the market price.

     

    What are their benefits?

     

    Savings account has many benefits. Like, you earn steady and fixed interest on your savings because banks are less likely to change the interest rate. Banks also ensure safety to your savings.
    Liquid funds offer good interest on investments. Iske alawa aapki savings tied up nahi rehti. You can withdraw your money at any time and this amount will be automatically deposited in your bank account.

     

    Which option is suitable for which investor?

     

    If you are someone who just wants to park your savings and earn some amount as interest on your savings then you can opt Savings account as AU bank offers good interest on its Savings account. However, the interest earned on liquid funds is comparatively low. Liquid funds also have added risks. Isliye safe option chahte hai to savings account acha option hai.

     

    What kind of tax is charged on both?

     

    Both on savings accounts and Liquid fund earnings normal tax is applied on the basis of investors’ income.

    Since you now know how Liquid Funds and Savings Accounts work, safeguard your savings using any option, and be money-smart.


Apply Now