Liquid Fund vs FD - which is better for 1 month?

For very short durations like 1 month, liquid funds offer better flexibility as they have no lock-in (except for a small exit load in the first 7 days), whereas many bank FDs have lower rates for short tenures.

Are liquid fund returns guaranteed?

No, liquid fund returns depend on the market yield of the underlying debt securities. However, they are among the lowest-risk mutual fund categories.

Liquid Fund vs Bank FD

Dynamically compare short term parking yields between Liquid Funds and Bank FDs.

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Quick Summary: Liquid Fund vs Bank FD

The Liquid Fund vs Bank FD Calculator compares returns, liquidity, and post-tax yield of debt mutual funds against traditional bank Fixed Deposits in FY 2026-27, factoring in the latest indexation-free tax rules.

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Regulatory Disclaimer

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.