I have been asked multiple times that what to do when people have some cash which will be needed in short term. Now short term can be anywhere between 15 days to 6 months. To be honest, there is no simple answer to it. If you need money in 30 days like paying the credit card bill or something else, then keeping in savings is the best way.
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For example, you have 1 Lakh rupees and you need that in 30 days. If you are putting in FD you will be getting around 3.5% annually and if you are keeping in the normal savings account you will get around 2.5% annually. But if you take it monthly, the difference is just Rs 80.
So fir 80 rupees there is no point in creating FD. So at first we have to find out when is your money requirement if its 15 days or 30 days or even 60 days, no point in keeping in FD. But the other side of it is that, if the money is in savings account, it usually gets consumed.
A lot of people have a tendency to spend if they have the money in their bank thinking their salary will come in some days. If you are someone like that, then best thing to do is to keep in FD. Because then your money will not be seen in the savings account and thus you cannot spend it.
So it's a simple logic, if you have a spending problem then create a FD even for 15 days. And if you are ok for the money to sit in your account for long then no point in saving in FD if the money is required in 15 to 30 days.