Life is unpredictable, you don't know what crisis will hit you next.
But, with an Emergency fund in place you can tide over unplanned or unexpected financial situations.
Investing in Liquid Mutual Funds is a Simple and effective way to create an Emergency fund. With Glide Invest create an Emergency Goal and be prepared for unplanned expenses.
Simply put, Interest earned through Savings account is less than the cost of inflation, which reduces the purchasing power of your money.
Let's understand this with simple math’s, interest rate offered by savings account = 3.5% to 5.00% (remember with conditions of minimum balance, tenure & threshold limits in place) whereas the cost of inflation is around 7%. This means your money is not generating enough returns & thus you lose purchasing power in long term. Don't forget the other expenses associated with your bank account also impacts the returns.
Money in Savings account get spent unconsciously.
No. Big No.
Always remember emergency funds are for unplanned situation.