New Delhi, May 19 -- Building an emergency fund is one of the most important steps in personal finance. The real question is not whether you should have one, but where to keep it so that it remains accessible while still working for you.

For most people, the choice comes down to a savings account or a fixed deposit (FD). Each option involves trade-offs among liquidity, returns and tax efficiency. As financial products become more digital‑first and complex, striking the right balance between instant access and growth is essential.

Sarika Grover, co-founder of LoansJagat, explains the concept of an emergency fund and elaborates on the significance of striking a balance. She says, "An emergency fund is meant to give you peace of mind...