Emergency savings: Choosing between a sweep-in FD and a liquid fund
A sweep-in facility connects your savings account directly to a fixed deposit. This is a practical option for the portion of your emergency savings that you might require quickly, as it provides a guaranteed interest rate and higher stability. Conversely, a liquid fund puts money into short-term debt and money-market securities, making it a better fit for the part of your emergency fund that you likely won't need to access right away.
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