New Delhi, Aug. 4 -- If you keep surplus cash idle in a standard savings account earning just 2.5% to 3%, your money is quietly losing purchasing power to higher inflation. This gap is driving more savers to look beyond traditional savings accounts for funds they don't need immediately. While fixed deposits and sweep-in accounts remain the primary go-to options for short-term parking, a new category-cash optimization and management apps-is advertising liquid-fund-linked returns on everyday spending money, not just dedicated savings.

Offered mainly by mutual fund distributors and fintech platforms, these apps channel surplus cash into liquid funds or fixed deposits to deliver better yields. Their main appeal lies in a user-friendly interf...