Banks cut interest rates on savings accounts. Should you shift to liquid mutual funds now?

As banks reduce savings account interest rates, experts suggest liquid, money market, and overnight funds as appealing alternatives for better short-term returns. HDFC Bank and Axis Bank have lowered rates to 2.75%, prompting a potential shift towards debt mutual funds. Despite recent outflows in liquid funds due to year-end obligations, the outlook remains positive, especially with the RBI's accommodative stance.