New Delhi, Aug. 5 -- Holding extra cash in a traditional savings account earning a meager 2.5% to 3% causes your money to lose real value against inflation. This yield gap is prompting smart savers to look beyond standard bank accounts for short-term funds. While fixed deposits and sweep-in accounts remain popular traditional choices, a new modern category-cash optimisation and management apps-promises liquid-fund returns on everyday spending money.

Offered primarily by fintech platforms and mutual fund distributors, these apps route surplus cash into fixed deposits or liquid funds to generate better yields. Their primary pull is a seamless digital experience paired with brand discounts and cashbacks when you spend. Here is a breakdown o...