ParkSmart
Compare savings accounts, liquid funds, fixed deposits and arbitrage funds on a post-tax basis, and see where short-term idle cash actually works hardest.
Ranks the places to keep short-term idle cash by what you actually keep after tax, for the amount and horizon you enter.
How to use it
- Enter the amount and how long before you need it back.
- Set your income-tax slab — it changes the ranking more than the headline rates do.
- Read the post-tax column, not the rate column.
- Check the liquidity note on the winner: an option you cannot exit when you need to is not the winner.
How it is calculated
Each option carries a representative category rate, shown on the page, and gross return is computed for your amount and horizon.
Tax is then applied by instrument type: interest from savings accounts, deposits, T-bills and debt funds is taxed at your slab; arbitrage funds are taxed as equity, at 20% short-term or 12.5% long-term above the exemption; savings-account interest gets the 80TTA exemption pro-rated to the holding period.
Options are ranked on the post-tax figure, with a minimum sensible holding period enforced per instrument so nothing is ranked into a horizon it does not suit.
A worked example
Why the tax slab reorders the list
- Amount
- ₹5,00,000
- Horizon
- 9 months
- Option A — interest-bearing
- 7.5% gross, taxed at slab
- Option B — equity-taxed
- 7.5% gross, taxed as equity
- At a 5% slab
- A keeps ~7.1%; B keeps ~6.6% → A wins
- At a 30% slab
- A keeps ~5.3%; B keeps ~6.6% → B wins
Identical headline rates, and the ranking reverses on the slab alone. This is why ParkSmart asks for your slab before it ranks anything, and why the post-tax column is the one to read.
Common mistakes
- Comparing the rate column instead of the post-tax column. At a high slab the tax treatment moves the ranking more than a full point of headline rate.
- Ignoring the liquidity note on the winner. An option you cannot exit on the day you need it is not the winner, whatever it returns.
- Assuming the 80TTA exemption applies. It is an old-regime provision; under the new regime treat savings interest as taxed at slab.
- Entering a horizon longer than the money is genuinely free for. Breaking a deposit early costs a rate penalty the comparison did not include.
What it assumes
- Rates are representative category figures for comparison, not live quotes. Confirm the current rate before moving money.
- The 80TTA exemption applies under the old tax regime; if you are on the new regime, treat that option as taxed at slab.
- Credit and duration risk are described per option but are not modelled as a probability. "Very low risk" is not "no risk".
Frequently asked questions
Where should I park money I need in three months?
ParkSmart compares savings accounts, liquid and overnight funds, money-market and ultra-short funds, fixed deposits, T-bills, arbitrage funds and sweep-in FDs on a post-tax basis for the horizon you enter. For very short horizons the ranking usually turns on liquidity and tax treatment rather than headline rate.
Why does the top-ranked option change with my tax slab?
Because these instruments are taxed differently. Interest from savings accounts, FDs and debt funds is taxed at your slab, while arbitrage funds are taxed as equity. At a 30% slab that gap can outweigh a higher headline rate entirely — which is the whole point of comparing post-tax rather than gross.
Are the rates in ParkSmart live?
No. They are representative category rates, shown on each option, and are used to compare instruments against each other rather than to quote a product. Always check the current rate with the provider before moving money.