What is the current RBI repo rate?

The RBI repo rate is 5.25% as of the June 2026 MPC meeting. Repo rate is the rate at which RBI lends short-term to commercial banks, and is the key benchmark for loan and deposit interest rates across India.

What is a liquid fund and is it better than a savings account?

A liquid fund invests in debt securities maturing within 91 days. It typically earns 1-2% more than a savings account, with redemption usually credited within 1 business day (instant redemption up to ₹50,000/day at most AMCs), making it a common place to park idle cash.

What is the difference between liquid, overnight and money market funds?

Overnight funds hold securities maturing in 1 day (lowest risk/return). Liquid funds hold securities maturing within 91 days. Money market funds can hold instruments maturing up to 1 year, typically earning slightly more than liquid funds for slightly more risk.

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Money Market — Rates & Short-Term Funds

RBI policy rates plus a live comparison of Liquid, Overnight, Money Market & Ultra Short Duration mutual funds

RBI Policy Rates

check_circle Unchanged since 05 Jun 2026

Repo Rate

5.25%

Reverse Repo Rate

3.35%

Bank Rate / MSF

5.5%

CRR

3.0%

SLR

18.0%

Source: RBI. Confirmed current as of today — rates only change at MPC meetings (~6x/year). Next scheduled MPC meeting: 05 Aug 2026.

Overnight Funds (277) Liquid Funds (401) Money Market Funds (199) Ultra Short Duration (217) Low Duration Funds (235)

Invest in securities maturing in 1 day — lowest risk, lowest return. Ideal for parking cash for a few days.

Top Overnight Funds — by 1Y Return

Fund	Rating	1Y Return	3Y Return	Expense Ratio
🏆 ADITYA BIRLA SUN LIFE OVERNIGHT FUND- Dire...	★★	120.03%	46.78%	0.32%
ADITYA BIRLA SUN LIFE OVERNIGHT FUND- Dire...	★★	120.03%	46.78%	0.32%
UTI - Overnight Fund - Direct Plan - Growt...	★★★	119.76%	46.79%	0.14%
UTI Overnight Fund - Direct Plan - Daily IDCW	★★★	119.76%	46.79%	0.14%
UTI Overnight Fund - Direct Plan - Periodi...	★★★	119.76%	46.79%	0.14%
Shriram Overnight Fund- Direct Growth	★★	118.82%	46.78%	0.21%
Shriram Overnight Fund- Direct Daily IDCW	★★	118.82%	46.78%	0.21%
Shriram Overnight Fund- Direct Monthly IDCW	★★	118.82%	46.78%	0.21%
Samco Overnight Fund - Direct Plan - Growt...	★★★★	56.08%	34.98%	0.26%
Invesco India Overnight Fund - Direct Plan...	★★★	51.28%	34.23%	0.11%

savings

Better Than a Savings Account

Liquid funds typically earn 1-2% more than a savings account's ~3.5%, with next-business-day redemption. A common place to park emergency funds or idle cash.

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RBI Rates Set the Floor

The repo rate anchors what banks charge each other and, indirectly, what money market funds and FDs can earn. When RBI cuts rates, expect these fund yields to gradually follow.

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Not Risk-Free

Unlike a savings account, money market funds aren't insured (no DICGC cover) and NAV can fall on credit events, though this is rare for overnight/liquid funds.

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Fund data updates daily via AMFI NAV feed. RBI rates updated manually after each MPC meeting. Not investment advice — please do your own research.