Is the POSB SAYE account recommended for short term savings?

Hi Anon,

Given that one of the conditions for the bonus interest rate for POSB SAYE is no withdrawals for 24 months straight, I personally won't keep short term savings in this account.

To me, short term savings are things I am saving up for in the coming year or two - which means I will need to tap on these savings before completing the 24 months of no withdrawals. So I'd think that it's more suitable for long-term savings, especially since this forces you not to withdraw anything for 2 years, which may help you in reaeching you long-term savings goals.

Of course, if your short-term savings goals are more than 2 years, this would work fine - just take note not to withdraw any money from it.

Hope this helps!

Regards,

thefrugalstudent