1. Sir, the sweep out facility I was talking about was transfering cash out from an FD in small bundles to a savings account automatically to meet a shortfall in the savings account either to honour a cheque or meet withdrawals from an ATM.

  2. thanks so much !!

    I ve always been looking for a good place park liquid funds.. .I ve hated having them in SB account for the risk of my my debit card being stolen or lost.. My alternative was FD, but again FD attracts penalty if I withdraw within certain time from the date of deposit.. Liquid Funds sounds like the one that I was looking for..

    Can you put another article on liquid funds ? or I wd be happy if u can reply to this comment with pointers where I can enough info about the liquid funds.. Thanks !!

  3. Apart from the rice container part, I keep mine in the SBI Home Loan OD account. It saves (in a way earns) me the 10.5% interest that i pay on the home loan. It’s a online transfer away in case of an emergency.


  4. I follow the practice of FD’s, in case of liquidity needs, it takes within 24 hours to get it and now-a-days the pre-mature termination can be done online as well.

    I also follow the practice to create FD’s with principal of maximum 10K each instead of one big amounted(don’t misinterpret this, I am no millionaire) FD, so in case of small cash needs I still have my other FD’s intact.

    The only drawback of putting a maximum FD principal limit is the extra overhead of portfolio management.

  5. My choice is debt fund (does debt come under liquid fund?). But the liquidity part is more so due to the ATM card given by Reliance MF company. I can withdraw 50% by ATM on any day. So practically, in 24 hours i can withdraw 75% by ATM.

    This fund also doubles as my monthly expense account. But best thing to do this is after 1 year to avoid the 1% load.

  6. @BS….kindly call any/your agent to understand the funds in question, quite easy to grasp even if you have not invested in any till now. However when asking about how to invest, pls ensure you also ask how to withdraw – conditions/forms/access points etc. Still if you looking for a reference…best is http://www.google.com

    @rest — kindly share complete details when referring to something new (product/practice). E.g. ATM card facility of reliance. Does it have annual charges, does it have withdrawal charge? (and yes…i did ask my MF agent about it, but he did not have much details!!)

  7. @Manoj, well i dont want to advertise reliance too much, but since you asked; no annual charge. exit loads as per the fund, no charge for withdrawal at HDFC atm once a month, all other withdrawals(HDFC and non HDFC) are charged ~ Rs30. You will get all rules on reliance mf website.

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