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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 104,000 4,000 4.0
ICICI Prudential Liquid -Growth 100000 106,630 6,630 6.63
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 4,000 Not Applicable Not Applicable 1,200 2,800
ICICI Prudential Liquid -Growth 6,630 Short Term Not Applicable 1,989 4,641

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%

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