Returns on Idle Funds in Trading Account


#1

Is it possible to earn excess returns on funds lying idle in Zerodha Trading account? I was wondering / hoping that there is a provision similar to overnight funds, where money can be deployed post market hours and available before the market opens on a regular basis.

Thanks


#2

You should look into LiquidBees.
Please do a little research on it before investing in it. Charges and other things.
The pricing methods have changed for to it recently.


#3

As far as I read on tradingQ&A…funds from LiquidBees get credited only in T+2 days…so we cannot have funds for trading the next day…Are there any other options for parking idle funds for overnight or weekends? Even Liquid and Overnight funds can’t be bought and redeemed on Coin immediately to have funds for trading the next day morning…


#4

@nithin, hope there is some option in Zerodha where we can park overnight funds and earn some return on it. Thanks.


#5

You can use the sale proceeds of Liquidbees immediately to trade.


#6

You can park your funds in Liqudbees.


#7

Thanks Bhuvanesh. Is there an automated facility with Zerodha or do I need to BUY manually few mins before market close and SELL at market open everyday?

Cheers


#8

@Bhuvanesh here is a better solution:-
Open account with DBS Digibank or Kotak 811 or IDFC. Link that account with Zerodha. Instead of liquidbees, keep money in the savings bank account to earn 5-7% interest p.a. Whenever required, transfer money to Zerodha using IMPS which is free of cost for these banks. Fund would be added to Zerodha in 10 min.
Also, savings bank interest upto Rs 10,000 is tax exempted under section 80 TTA. So enjoy 100% liquidity with tax benefit as well.


#9

I’m doing it with a combination of ultrashort debt fund in coin as well as instant redemption liquid fund directly with fund house. After redeeming i do a UPI to zerodha without any charges.