New Delhi, Sept. 21 -- An emergency fund is meant to stay accessible when an unexpected expense comes up, such as medical treatment or house renovation, but keeping a large sum idle in a savings account may not be the only option.

For someone looking to set aside Rs.10-15 lakh, the challenge is to balance access to the money with the need to earn some return on it.

This is where FD laddering strategy can be useful. It involves splitting a lump sum across multiple fixed deposits with different maturity periods, instead of putting the entire amount in a single long-term deposit.

By following this strategy, investors can make the withdrawal process becomes more flexible when funds are needed. With the entire amount locked into one tenure,...