3 Ways to Park Cash Surplus in Present Times

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3 Ways to Park Surplus Cash in Present Times

Made a higher-than-expected profit in business or got a bonus from your employer? Here’s a pro tip to park your cash surplus in present times.

Got an unexpected bonus from your company? Made a higher-than-expected profit in business? This quick read is to help you make the most of your cash overflow.

While no one can ever complain about running into a situation where they get more money than expected, most have no idea about how to deal with it.

Unfortunately, money has a way to find expenses to fund and before you know it, it is all gone.

So, before your wallet empties out, here are 3 ways to park your money in the short-term:

  • Emergency Fund: On the risk of sounding like a broken record (because we have been repeatedly talking about emergency funds), adding this sum to your emergency fund is one of the best uses of this “extra” cash. If you do not have an emergency fund, then you need to start one. If you have one already to cover expenses of 6 months, make a goal of building one that can cover your expenses for 1-2 years
  • High-Interest Savings Accounts: Plenty of Indian banks offer special savings account variants that offer a relatively higher interest rate as compared to standard savings accounts. They may have a higher minimum balance requirement or other terms, but they are ideal for building up liquid assets
  • Fixed Deposits: This is a self-explanatory term. It is great to earn a higher interest rate than a standard savings account or other investments especially in the short term. The best part is that your savings are safe and returns are assured

Liquid assets can help you deal with financial crisis easily. Once you have a proper long-term investment plan, you can pull it out from these liquid assets and use it as you please.

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