If you have any short-term goals, then it is best to invest in liquid mutual funds. While you may have a savings account, it is also significant to maintain liquid funds account that will be useful for goals you want to achieve in 3 months' time, as well as during contingencies.

Some of the features of liquid funds include:

It is ideal for emergencies.

It can be easily redeemed whenever you need funds.

It does not require planning.

It is not affected by market volatility.

However, investment in liquid mutual funds does not mean that you should not have a savings account. You can save some money in savings and some in liquid MF. For more information, listen to the Mutually Yours podcast.