Are Savings bank accounts the best option for parking your money?
- Open a zero balance Liquid account with a Mutual Fund.
- One time KYC (Know Your Customer) formalities. Much simpler than bank account opening formalities. A simple form is to be filled up, requiring just two minutes.
- A unique account number is allotted. This number is to be used for all the deposits/withdrawal.
Depositing the Money
- Money can be deposited by cheque or internet banking. No Cash transactions permitted.
- Cheque has to be in favour of the Liquid scheme name and has to be issued from the account holder's bank account only.
- If single deposit is more than Rs.1 cr, then money has to be received by the MF before 3 pm in their account.
- No need to specify any time period for the money kept in the account.
- Any time, any amount can be deposited and any amount can be withdrawn too.
Withdrawal of money
- Withdrawals are paid on next business day directly in the account holder's bank account, which is registered with the mutual fund. No third party payment possible. No cash withdrawal possible.
- For individuals, withdrawal request can be given over phone. No need to sign any documents. (Please note, Bank account details and address details cannot be changed over phone)
- Withdrawal requests given on Friday are paid on Monday morning or next business day, which so ever is applicable. No payouts on Saturday, Sunday & Holidays.
Returns
- Returns are approximately 8% currently, compared to 4% in savings account.
- The returns are calculated on daily closing balance and added back on a daily basis in your account.
- Returns can get added on taxable basis or tax free basis, depending upon your choice.
- Tax-free returns are 13.52% less than taxable returns for individuals and HUFs.
Risks
- Money gets invested in top rated short term bank securities/ call money markets etc. Full investment disclosures available.
- Returns get credited daily in your account.
Others
- Get account statement free any time over mail/physical copy after every transaction. You can ask your account statement as many times as you wish. It is free.
- Transaction timings – All business days till 3.00 pm.
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