Liquid Funds vs Savings Bank

Liquid Mutual Funds vs Savings Bank

Savings Bank
Liquid Fund
Pre-Tax Return Investment Amount Redeemed / Maturity Amount Total Interest / Profit Amount Annual Interest / Return (%)
Savings Bank Deposit 100000 104,011 4,011 4.0
ICICI Prudential Liquid Fund - Growth 100000 107,302 7,302 7.28
Post Tax Return Pre-tax Interest / Profit Amount Capital Gains Tax Indexed Amount Income / Capital Gains Tax Post Tax Interest / Profit Amount
Savings Bank Deposit 4,011 Not Applicable Not Applicable 0 4,011
ICICI Prudential Liquid Fund - Growth 7,302 Short Term Not Applicable 2,191 5,111


1. Short Term in case of debt funds is defined as less than or equal to 3 years. Long Term in case of debt funds is defined as more than 3 years.

2. Short term gain formula:

Short term capital gain = Amount realised - Amount invested

Short term capital gain tax = Short term capital gain * Tax rate of the investor

3. Long term gain formula:

Indexed cost of acquisition = Amount invested * (Index in Year of redemption / Index in year of investment)

Long term capital gain = Amount realised - Indexed Cost of Acquisition

Long term capital gain tax = Long term capital gain (post indexation) @ 20%

4. Please note that Section 80TTA grants a deduction on savings account interest up to Rs 10,000 per annum. It applies to all individuals and HUFs other than senior citizens (those above 60). Senior citizens can instead take advantage of a bigger deduction of Rs 50,000 per annum which includes both savings and FD interest under Section 80TTB.

5. Section 80TTA was introduced in the Finance Bill of 2013 and became applicable from the Financial Year of 2012-13 onwards. Whereas deduction under Section 80TTB is applicable w.e.f. April 01, 2018.

6. No tax has been applied on the gains of saving bank interest in this tool.

Disclaimer : We have gathered all the data, information, statistics from the sources believed to be highly reliable and true. All necessary precautions have been taken to avoid any error, lapse or insufficiency; however, no representations or warranties are made (express or implied) as to the reliability, accuracy or completeness of such information. We cannot be held liable for any loss arising directly or indirectly from the use of, or any action taken in on, any information appearing herein. The user is advised to verify the contents of the report independently.

Returns less than 1 year are in absolute (%) and greater than 1 year are compounded annualised (CAGR %). SIP returns are shown in XIRR (%).

The Risk Level of any of the schemes must always be commensurate with the risk profile, investment objective or financial goals of the investor concerned. Mutual Fund Distributors (MFDs) or Registered Investment Advisors (RIAs) should assess the risk profile and investment needs of individual investors into consideration and make scheme(s) or asset allocation recommendations accordingly.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in the future. Investors should always invest according to their risk profile and consult with their mutual fund distributors or financial advisor before investing.

Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.

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