You can always keep your money in a savings a/c but that makes it hard for you to differentiate between your regular inflow/outflow. It’s best to stash your emergency money in a separate instrument, such as an FD or a debt fund.
Here are some advantages to choose Scripbox Emergency Money over an FD:
- No penalty for premature withdrawal
- Completely online investing and withdrawal
- You can withdraw any amount (not break the whole FD)
- Similar rate of growth but no TDS (tax deducted at source)