There was a time when it seemed futile to bother to move money out of the savings account to a liquid fund. In some cases, savings bank account interest rates were higher than the prevailing interest rates for treasury bills and commercial paper.

In case you have not noticed, central banks the world over have been increasing their interest rates. In India, yields on 3 month treasury bills have increased from a low of about 2.70%@ in May 2020 to about 6.50%@ now.

It may no longer be profitable to be lethargic and let money lie idle in the savings bank account. You may consider shifting your idle funds inthe savings and current account to a liquid fund.

Rajeev Thakkar

Chief Investment Officer and Director
Monday, November 7, 2022
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