Detailed Analysis
For money you need quick access to, savings accounts and liquid funds are the two main options.
Savings accounts offer instant access through ATMs, UPI, and net banking. However, most banks pay only 2.5-4% interest — below inflation. Section 80TTA provides a ₹10,000 interest exemption.
Liquid funds invest in very short-term instruments (treasury bills, commercial paper) maturing within 91 days. They offer 1-2% higher returns with same-day redemption up to ₹50K. For emergency funds above your monthly spending, liquid funds are more efficient.