SmartSave is a brand new feature on Groww.

It has just been launched and now, you can make full use of it.

What is it?

In short, SmartSave lets you store money while earning higher returns than a savings bank account.

When you keep your money in a savings bank account, you get a return of around 3.5% per annum. With SmartSave, you can expect to get around 6.5% per annum. That is nearly double.

How does SmartSave work?

SmartSave stores your money in ICICI Prudential Liquid Fund.

Liquid funds are extremely low-risk mutual funds. Their risk can be compared to that of keeping money in a savings bank account.

Savvy investors and corporates store money in liquid funds.

Liquid funds generally give returns in the range of 6.5 to 7% per annum.

SmartSave vs liquid fund investment

You might be wondering what advantage SmartSave has over investing in liquid funds.

The advantage is in the case of withdrawing.

When you withdraw from a liquid fund, it takes 1-2 working days for your money to reach your bank account.

This is a limitation because it prevents people from using liquid funds as an alternative to keeping money in a savings bank account. Investing directly in liquid mutual funds means you have to wait for the money to reach you.

With SmartSave, you can withdraw the money nearly instantly. 24/7 – even on holidays. 

You can withdraw a maximum of Rs 50,000 or 90% of the total amount invested (whichever is lower).

This allows you to earn returns as high as 6.5-7% – it allows you to use liquid funds as an alternative to a savings bank account!

And if you want to withdraw the entire amount, you can request for that too and you will get the entire amount in your bank account within 1-2 working days- just like withdrawing from a liquid fund.

What can you do with SmartSave?

You can invest in SmartSave.

You can choose to invest every month or one-time only.

You can redeem ₹50,000 or 90% of the total amount instantly – even on holidays.

You can redeem the entire amount – you will get it in your account within 1-2 working days.

Who should invest in SmartSave?

There are 2 main cases for investing in SmartSave.

1. Alternative to savings bank account

Your savings bank account gives you 3.5-4% per annum.

You can make nearly double that amount investing in SmartSave.

2. Alternative to fixed deposits (FD)

The returns offered by liquid funds and FD are quite similar.

But the question is, why invest in SmartSave if FD gives a similar rate of return?

The answer is very simple.


In FD, if you withdraw before the time period, you will be charged a penalty. There is no such thing in SmartSave.

Besides, with SmartSave, you also might need to pay less tax if you keep your investment for a long period of time.

Is my money safe?

Nothing is 100% safe – not even the money kept in the savings bank account.

Everything has a risk. It is just a matter of how much.

Let me show you how low-risk liquid mutual funds are.

Look at any mutual fund.

Take for example, SBI Bluechip Fund

sbi bluechip 5 year returnsAs you can see, the returns move up and down from time to time.

Now look at the returns from ICICI Prudential Liquid Fund

icici prudential liquid fund 5 year returns

The 5-year returns have been stable. Barely any fluctuation.

And not just that. Look at even the oldest liquid funds too. They all have remained stable through good and bad times.

This is why using liquid funds instead of a savings bank account is a good idea.


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