Get latest articles and stories on Business at LatestLY. Mumbai (Maharashtra) [India], July 25: A Savings Account is a type of deposit account offered by banks and financial institutions, enabling customers to deposit and withdraw funds conveniently and at their will akin to the concept of it being a “demand deposit.” It serves as a secure place for day-to-day financial transactions, bill payments, and emergency funds. Prior to the introduction of UPI in India, average transactions in Savings Accounts were restricted to in-person withdrawals, cheques, and debit card usage. However, UPI's advent has transformed digital payments, leading to a significant surge in the average number of transactions in Savings Accounts. UPI's convenience has revolutionized financial activities, making the Savings Account an essential and dynamic tool in the modern banking era for day-to-day financial requirements. Business News | Maximize Your Savings with AU Small Finance Ba
Underlying funds risk profile comparison
Before we start, it is important for you to know more about the difference in the risk of the cash management products these funds invest in from cash funds, money market funds (MMF) to short-duration bond funds.
An important thing to note is that these cash management accounts are investment products, which means your capital is not guaranteed by Singapore Deposit Insurance Corporation (SDIC).
In the fund space, cash funds are the safest asset class amongst these three funds. For this asset class, the fund generally invests in a diversified portfolio safe institutional bank fixed deposits and treasury bills. the cash fund has the lowest downside risk compared to the other two funds.