Short term returns better than FD - Query

Currently, nothing is better than FD especially considering security which is the most important factor for such emergency funds. For up to 5 lakh amt one can take a look at FD rates in Equitas Bank or Ujjivan Bank.

yes liquid funds will give 7% pa until next rate cut and will reduce as per rate cuts

Liquid mutual funds are best for your requirements.

Check for debt or securities mutual funds...they don't have much risk, returns are a bit better than fd

Risk vs Return 

-choose one

Kotak Active Money should solve your purpose

Try peer to peer lending if for you security is not  your concern it will fetch 9.5% approx

Try uttarkash bank savings account till 5 lakhs it will give good savings account returns without FD but keep it below 5 lakhs for safety

Go for liquid mf or ultra short duration fund

Depending on amount, IDFC saving account gives 7% (5lk-10 lk slab) and 7.25% above 10lk.

I am using Kotak, they have a feature called Activmoney (just activate in app) where they sweep balance above 25000rs in and create FD for 6 months using the Last in first out method and there is no premature withdrawal penalty. 
Important point is if you keep on adding/removing balance in 1 month you will get 2.5% which is below 3% savings. 
Each month it adds 1% interest max to 7% and FD is auto-renewed after 6 months.

Earn up to 7%* Interest with Kotak ActivMoney Savings Account