Put money in the bank or put them in dividend stocks for dividends? Which is better?

If you put them into stocks, it might take some time to liquidate the funds out. It depends on your risk tolerance and expected returns.

If you can't take risk, bank will be the better options.

If you can take some risk, dividends stock.

If you can take risk (med-high), you can consider stocks that move faster for capital growth.

Bank Account

Pros

• More liquid as compared to stocks

• Capital guaranteed (up to $75,000 by SDIC)

• Low maintenance

Cons

• Insignificant growth

• May pay interest only once a year

Dividend Stocks

Pros

• Grow money at 5-10x more than your bank account (assuming 5% yield rate)

Cons

• Capital non-guaranteed

• Require effort to monitor news / research about company

Put it into a cheap SP500 ETF

like ticker VOO (USA)

If you need the money to meet your short-term needs, then the bank will be the most common choice.

If you are willing and able to tolerate some risk and do not need the money in the short to mid term, then consider getting stocks that pays dividend higher than the bank's guaranteed rate of return.

That being said, you will need to monitor your stocks on a regular basis to ensure that it is worth keeping for the long run.

All things considered, I will suggest for you to have a complete understanding on your cashflow first. Through this process, we will understand our earning ability and spending habit. Here is a guide to help you: https://www.blog.pzl.sg/understanding-your-pers...

Thereafter, we will be able to understand the most appropriate choice for your life stage.

Here is everything about me and what I do best.