It is necessary to search alternate of savings account, as they give low interest rates.We all keep some cash in savings accounts for daily expenses for liquidity and convenience.
Now, as interest rates became low 3.5-4 per cent, we can’t keep a large sum of money in savings accounts, as considering inflation, one is actually earning negative returns.
That is why experts have started asking people to keep minimum cash in savings accounts and park the rest in better alternatives like ATM,etc.”Ideally, 15 days to one month expenses are good enough for savings accounts, especially as there are instruments like credit cards for emergencies.”
List of instruments
any time money card
high yield bank account
certificates of deposits(CDs)
treasury bills and notes
Liquid funds are mutual fund schemes ,which invest in very short-term debt instruments, such as certificates of deposit, commercial papers, treasury bills, etc.
The average maturity of the portfolio can’t exceed 91 days.
Any time money card
Plastic money is a popular way of accessing a bank account or a credit account today for withdrawing cash or shopping, but what if you could bring the same convenience to your mutual fund portfolio? .Presenting Reliance Any Time Money card that combines the benefits of mutual fund investments along with the convenience of a debit card.
While traditional Mutual Fund investments offer the potential to earn market-linked returns with benefits of diversification, relatively low cost, liquidity, and professional management, accessibility to investments in these funds, mostly provided through physical redemptions, though high, is not instantaneous. The Reliance Any Time Money Card offers instant accessibility and liquidity to investors of mutual fund .
Features of reliance for any time money card
- Cash withdrawal facility at Visa enabled ATMs .
- purchase transactions at merchant establishments just like a regular debit card in India.
- Daily Visa enabled ATM cash withdrawal limit of 50% of the balance in the primary scheme account or up to permissible limit determined by the bank or ` 50,000 whichever is lower
- Daily purchases limit of 50% of the balance in the primary scheme account* or ` 100,000 whichever is lower
- Fuel surcharge waiver
- Free SMS and E-mail alerts on every transaction
High-yield bank account
High-yield bank accounts are a type of savings account, complete with FDIC protection, which earn a higher interest rate than a standard savings account.
the account access is limited as it usually requires larger initial deposit so it earns more money. Many banks offer this type of account to valued customers who already have other accounts with the bank.
Online high-yield bank accounts are available, but you will need to set up transfers from another bank to deposit or withdraw funds from the online bank.
Certificates of deposits(CDs)
certificates of deposits (cds)are available through most banks and credit unions.
The catch with a CD is that you will have to keep the money in the CD for a specified amount of time.
Treasury bills and notes
U.S. government bills or notes, are referred as treasuries.these are backed by the full faith of the U.S. government, by making them one of the safest investments in the world.
Treasuries are exempt from state and local taxes, and are available in different maturity lengths.
The difference between the purchase price and the face value is the interest. In addition to interest, if purchased at a discount, T-notes can be cashed in for the face value at maturity.
Both Treasury bills and notes are available at a minimum purchase of $100.
A bond is a low-risk debt investment, which is similar to an IOU governments to fund projects.
In exchange for the “loan,” the bond issuer pays interest for the life of the bond, and returns the face value of the bond at maturity.