To create an emergency corpus to sustain family expenses for minimum 6 mths if income stops for any given reason.
To achieve this should I just save money and keep it blocking or can go for any sort of RD, FD or other investment?
Ideally, I prefer to go for creating an FD using net banking facility. This will create you highest liquidity and interest rate of regular FD. Hence, whenever you have surplus to meet this goal, try to create an FD using net banking facility.
Also, keep around 2-3 months expenses in your savings account. Because in some cases you may be out of internet access. In such situation cash in savings account will be handy.