What you plan to spend in next few weeks to less than a year can be invested in short term options like Liquid fund and Arbitrage funds. While your savings account gives only 2.75% p. a return and current account gives zero interest on balance amounts, the liquid and Arbitrage funds can give returns around 6% - 7% p.a.
Both the categories are highly liquid, you can withdraw the funds with a short notice as there is no exit load beyond few days of investment. Any amount that you have as temporary surplus, or unplanned money or the money that you received as bonus/incentive can be parked in these two category of funds.
Liquid funds generally has an exit load of 7 days and can give returns closer to call money market returns. They can be redeemed partially or fully as and when there is a requirement of funds. The returns generated is added to the income and taxed as per the personal slabs. The returns are better than the savings account return or current account return.
Arbitrage funds are generally invest in to take advantage of the spreads that are available between two markets. Arbitrage funds will have net neutral positions in equity exposure by having long and short positions simultaneously, the investment do not have any net open position in equity and hence will not be affected by market volatility. The returns are treated as equity capital gains and taxation is 20% for short term capital gains and 12.5% for the long term capital gains.