Liquid Funds vs Savings Bank

Savings Bank
Liquid Fund
Submit
Pre-Tax Return Investment Amount Redeemed / Maturity Amount Total Interest / Profit Amount Annual Interest / Return (%)
Savings Bank Deposit 100000 103,978 3,978 4.0
ICICI Prudential Liquid Fund - Growth 100000 106,885 6,885 6.92
Post Tax Return Pre-tax Interest / Profit Amount Capital Gains Tax Indexed Amount Income / Capital Gains Tax Post Tax Interest / Profit Amount
Savings Bank Deposit 3,978 Not Applicable Not Applicable 1,193 2,784
ICICI Prudential Liquid Fund - Growth 6,885 Short Term Not Applicable 2,065 4,819

Note:

1. Short Term in case of debt funds is defined as less than or equal to 3 years.

2. Long Term in case of debt funds is defined as more than 3 years.

3. Short term gain formula:

Short term capital gain = Amount realised - Amount invested

Short term capital gain tax = Short term capital gain * Tax rate of the investor

4. Long term gain formula:

Indexed cost of acquisition = Amount invested * (Index in Year of redemption / Index in year of investment)

Long term capital gain = Amount realised - Indexed Cost of Acquisition

Long term capital gain tax = Long term capital gain (post indexation) @ 20%