Earn more from your Idle Money in the Bank

Earn more on your idle bank balance

Here's how you can earn double the returns you get in a savings bank account without compromising on liquidity

The charm of a savings bank account lies in the flexibility it offers to call your money at will. But it comes at a cost as the money idling in your bank account earns a meager 4%. So is there a way out? Is it possible to earn superior returns as well as get instant liquidity?

As the chart above shows, you can effectively double the return on your money, simply by keeping it in ultra short term funds rather than savings bank accounts. This can make a huge difference to how much you earn on your idle money. For instance, a Rs 3 lakh corpus can earn Rs75,000 more in ultra short term funds than in your savings bank account in 5 years' time.

This Strategy doesn't come at the cost of liquidity.

You can earn higher returns whilst keeping your money available at short notice. Here's how

There are many reasons why you need some money close at hand. If you or a loved one falls ill or if you need to conduct urgent repairs. You also need money to pay bills whose amount you cannot fully predict, as anyone who has been an MSEB customer would know. But is this money doomed to sit in your Godrej Almirah or bank account earning somewhere between zero and four percent? Or do you have to lock it away in Fixed deposits for that extra return?

Not any more. The Indian Mutual Fund industry now offers an instant redemption facility which allows you to keep your day-to-day or emergency money in an ultra-short term fund or a liquid fund. These funds earlier allowed you to redeem your money within one day if your request was submitted before 3 pm. Now you can get your money instantaneously at the click of a button, and earn a higher interest rate on it.

Some might argue that it is better to keep it in short term fixed deposits. However these instruments are not flexible - the term may be short but it is fixed and premature closures will attract penalties.

There are of course some caveats. The fund will typically stipulate a limit on the amount of money you can get at a moment's notice and it will also limit it as a percentage of your holding with the fund. However does that defeat the purpose of the offering itself? We think not.

Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 10 Tax Saver Mutual Funds for 2018

Best 10 ELSS Mutual Funds to invest in India for 2018

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. ICICI Prudential Long Term Equity Fund

5. Birla Sun Life Tax Relief 96

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Birla Sun Life Tax Plan

Invest in Best Performing 2018 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms

For further information contact SaveTaxGetRich on 94 8300 8300

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