Park It Smart: How to Make Your Emergency Fund Work for You

The Lazy Investor’s Guide to Making Your Idle Cash Earn More – Daily!

Let’s be honest – we Indians love keeping a good chunk of money parked in our savings bank accounts.
Why?
Point #1 – “I need it for Emergency Bro!”
Point #2 – “If it’s in the bank there is peace of mind”
Point #3 – “Bro I just keep it like that, just in case… you know?”

Now, what if I told you there’s a smarter way to park this idle cash? What if your ₹10,000 could earn ₹1.35 to ₹1.50 every single day, without any extra risk?

That’s ₹500+ a year, with almost the same liquidity as a savings account. Sounds too good? Well, say hello to Overnight Funds.

Let’s break it down the fun way – through a quick, relatable chat between Jay and Nikunj.

Jay: Bro, have you ever looked into overnight funds?

Nikunj: Overnight fund? Sounds like a sleepover for money! What is it exactly?

Jay: Haha, not wrong! It is where your money sleeps overnight… but while it’s sleeping, it’s also working and earning!

Nikunj: Wait what? Tell me more.

Jay: So basically, these are debt mutual funds that invest in instruments maturing the next day — like literally overnight. Super low risk, super short-term, and still give better returns than your savings account.

Nikunj: But are they liquid? Like, can I take out the money anytime?

Jay: Absolutely. Most allow redemption in T+1 or even instantly in some cases. Perfect for parking emergency funds or cash you’re not using immediately.

Nikunj: Hmm… sounds better than letting my ₹50,000 sleep for free in the bank.

Jay: Exactly! Imagine it like a money hostel — your cash gets a bed, food, and even does a night shift for extra earnings.

Why Overnight Funds Make Sense:

Better than savings account returns (with similar liquidity)

Low risk – only invests in overnight debt instruments

No exit load, no lock-in period

Perfect for emergency funds, bonus money, or idle cash

The Crux of the matter : If you’re someone who believes in “let the money rest in my account”, maybe it’s time to make your money rest smarter — not just sleep, but sleep and earn!