First and foremost, we need to understand what is emergency funds constitutes - what all expenses should include in that corpus, define it with one example would have made this effort worth, most don’t understand the concept.
What should one do if an emergency occurs while you were building the corpus, and you don't have enough funds saved? Seems obvious that one might have to take a loan, or ask friends and family, but if there are more educated choices, would like to know.
Then why it's called FD? Probably it's a saving account with high interest rate and high risk or maybe sweep facility, if it's sweep then read T&C very wisely.
Sir please do a video about SGB, i have a query since SGB is tax free after selling 8 years, and i can see in kite it just trading like stocks, so i can buy and sell this so what is the use of 8 years lock in
1 % penalty in interest rates. Do auto sweep feature in your savings account, you will get same returns as fd and you can also withdraw money anything just remember to keep the minimum balance acc. to your bank.
If you take the interest monthly, then they take a penalty from the main amount in case of premature withdrawal. Otherwise, they deduct it from the interest amount it self. Sweep is a good option. Just take a note of QAB of minimum balance. This is different for various bank for sweep account Eg- PNB has a minimum QAB of 25000. SBI 10000 Many bank managers do not tell this to you.
FD will be the best instrument to park our Emergency funds, and 12 Months of Expenses is ideal number, I made my Emergency corpus last month. Thanks to Zerodha for this beautiful series of personal finance.
P2P lending is generally riskier than FDs. Although it's tempting, I wouldn't recommend putting emergency fund into P2P lending as the chances of defaulting is high and also it'll take 2-3 days for withdrawing the fund. Whereas you can withdraw your FD on the same day.
@@manikantamagaji Many P2P platforms had a good diversified loan book and yes it takes 2 days for withdrawal but we have credit card for those 2 days as in video also mentioned.
No, first of all its an emergency fund plus a fixed deposit in scheduled commercial banks are insured by DICGC. Corporate FD are riskier and it's not insured
A gentle reminder to the video editor or the motion designer. You forgot to turn on Continuously Rasterize at 2:33 the footage looks blurry. Great visuals
Concept is very good to understand but action and voice some what not matching and it is unable to attract or pay attentions to watchers, camera view of recording would be improved Simple feedback to attract more users Thanks
Although I will say, better to put your money in a FD. In a scenario where you may need to send emergency money to someone on immediate basis FD will be an easier option than liquid fund.
In process of converting a FD ladder emergency fund to liquid fund. Last year had an emergency and were force to premature FD withdrawl resulting in fine. BTW, we do keep some amount in savings just to get going while in process of liquidating FD/liquid MF.
This is what iam looking for.. Thank you zerodha, thank you karthik rangappa sir
Good initiative Karthik Rangappa! Just like the modules of Varsity.
Big fan 🙌😊
Thank you, I don’t have any emergency funds yet but I have decided to build it for at lest 6 month of expenses. Later I will make it 9 months
Zerodha is on a mission...!! Kudos!👍👍
Thank you sir for preserving our future by providing financial knowledge
Money market funds, liquid funds, savings bank accounts, credit cards.
Blocked 6 months of expenses in FD. As FD renews, putting the interest earned also in the FD to create larger emergency corpus, although bit by bit 😂.
Just started to learn...Will build such which is more than sufficient for all family members as per furthur lifestyle.
straight forward. Will definitely share with loved ones
Please make a complete video on ROCE (return on capital employed)
First and foremost, we need to understand what is emergency funds constitutes - what all expenses should include in that corpus, define it with one example would have made this effort worth, most don’t understand the concept.
If you know, Plz explain us in Comment Section by giving an example, that will be much more beneficial for everyone.
Karthik Sir, you are looking like my favourite Hollywood hero "Will Smith" in this thumbnail.
What should one do if an emergency occurs while you were building the corpus, and you don't have enough funds saved? Seems obvious that one might have to take a loan, or ask friends and family, but if there are more educated choices, would like to know.
I’m parking my emergency funds in FD, Paytm FD gives 7%-7.5% and instant withdrawal without any charge
Then why it's called FD? Probably it's a saving account with high interest rate and high risk or maybe sweep facility, if it's sweep then read T&C very wisely.
@@Lifelong-Vidyarthi It was fd only, paytm partnered with other banks to provide that service
please be safe with paytm bank fd , now rbi has restrictions on paytm service from march'24
Icici corporate bond fund is the best place to park emergency fund. Approx 8% return p.a.
How can I achieve that.
@@Unapologeticmyrmidon mutual fund name
Sir please do a video about SGB, i have a query since SGB is tax free after selling 8 years, and i can see in kite it just trading like stocks, so i can buy and sell this so what is the use of 8 years lock in
Incase of medical treatment won't we use our health insurance instead of EF?
How can a NRI create an emergency fund in India considering he may have to leave the foreign country anytime due to tough market?
If we select the FD to park the emergency fund, there will be fine/penalty if we break the FD right sir.?
yes
Sweep in out/ Fd Linked to saving .
1 % penalty in interest rates. Do auto sweep feature in your savings account, you will get same returns as fd and you can also withdraw money anything just remember to keep the minimum balance acc. to your bank.
If you take the interest monthly, then they take a penalty from the main amount in case of premature withdrawal.
Otherwise, they deduct it from the interest amount it self.
Sweep is a good option. Just take a note of QAB of minimum balance. This is different for various bank for sweep account
Eg- PNB has a minimum QAB of 25000.
SBI 10000
Many bank managers do not tell this to you.
it's nice information for me Thank you sir🎉
FD will be the best instrument to park our Emergency funds, and 12 Months of Expenses is ideal number, I made my Emergency corpus last month.
Thanks to Zerodha for this beautiful series of personal finance.
Better to Invest in Monthly RDs!
Credit Card + Arbitrage ❤
Best advice
Thank you sir ❤
Linked FD.
Old School FD
Is fixed return product by P2P lending platform is good option for investment as emergency fund?
P2P lending is generally riskier than FDs. Although it's tempting, I wouldn't recommend putting emergency fund into P2P lending as the chances of defaulting is high and also it'll take 2-3 days for withdrawing the fund. Whereas you can withdraw your FD on the same day.
@@manikantamagaji Many P2P platforms had a good diversified loan book and yes it takes 2 days for withdrawal but we have credit card for those 2 days as in video also mentioned.
No, first of all its an emergency fund plus a fixed deposit in scheduled commercial banks are insured by DICGC. Corporate FD are riskier and it's not insured
i have 30 times my requirement
Personal finance emergency fund concept in tamil - ua-cam.com/video/2Ugx3KV6eoQ/v-deo.htmlsi=DQ_f6nlCspdwzefT
First 😂
Just made my 3.5L emergency fund 😃
Congratulations 🎉
Good for you brother.. congrats🎉
Insightful video on EF.
Preferred options are:
1. Savings Account
2. FD
3. Liquid Fund
All of them in various different proportions.
Arbitrage fund?
A gentle reminder to the video editor or the motion designer. You forgot to turn on Continuously Rasterize at 2:33 the footage looks blurry. Great visuals
I use Provident fund as a emergency fund , please answer that it will be a correct option or not?
Liquid fund has instant withdrawal facility while arbitrage fund doesn't have
That’s where credit card comes in…
Liquid fund takes T+1 days for withdrawal. Can you tell which liquid fund gives instant redemption
@@ayushbajaj1965icici, axis and many. They give in 30min upto 50k or 80% of the fund. Which ever is lower.
PPFAS LIQUID FUND @@ayushbajaj1965
@@ayushbajaj1965nippon india liquid fund
6 months' living expenses in cash in bank split between 2 accounts + 4 FDs of 1 lakh each
the credit card tip is great. I'd like to add - there are liquid funds which credit a certain amount (usually up to 50k) within 30 minutes
MOD/Sweepin FD > FD
why not just keep them in savings account.
You get higher Interest rate in an FD as against a savings account
@@lucfer2002if we break the FD when the emergency situation, bank will fine us right?
What would be solution for this
because you will spend it easily
Better to use sweep in facility in savings account
Use overnight funds or liquid funds
Wonderful presentation. Thank you
I parked my emergency fund in fixed deposits
❤
High interest yielding savings account
Concept is very good to understand but action and voice some what not matching and it is unable to attract or pay attentions to watchers, camera view of recording would be improved
Simple feedback to attract more users
Thanks
Thanks Guru :) waiting for more in this series
short and to the point...
Money market fund + credit card is my choice
I have built my emergency corpus and all is in FD
Sir, but as i know FD has 5 years lock in period right? Then how it works to withdraw during emergency?
Can you make a guide on how to calculate upside potential of a stock with all time high price
Keep doing ! Great work ! ❤️
I am having it as a gold bars
Although I will say, better to put your money in a FD. In a scenario where you may need to send emergency money to someone on immediate basis FD will be an easier option than liquid fund.
Problem with FD is preclosure penalty which bank charges on your interest and taxed at our income slab.
MOD @@dsivapradeep
We can use half of money in bank fd and other half in arbitrage funds. And also don't forget to take credit card only for emergency use.
Good one... Please make video on liquid funds for emergency funds
For emergency fund liquid fund is my preferred choice it gives me pice of mind.🎉 Credit card combination is good (T+1)😮😊
How about NPS Tier 2 account as a preferred option?
I have accumulated in Debt Funds
Is it good to keep them as active money of kotak. ?
Good and knowledgeable video sir, thanks a lot and want more videos like this
thanks for this really important tip
Can you please dub this in Hindi
Great Content
In process of converting a FD ladder emergency fund to liquid fund. Last year had an emergency and were force to premature FD withdrawl resulting in fine. BTW, we do keep some amount in savings just to get going while in process of liquidating FD/liquid MF.
There are FD where no fine is there in interest accumulated or principle amount. IndMoney has Federal Bank FD.
hi why not physical gold is our destination to park our half of our emergency fund.
Yes good option.banks give loan within 15 minutes with 70paisa intrest❤
Please educate us more
Fixed deposit
good information
❤
Very good initiative 👏
A very insightful video on financial security