Should I put money into POSB Fixed deposit during NS period?

I'm soon going to enlist in NS next year after my Poly year. Have ~ $2k before my enlistment. Should I put $1k into POSB fixed deposit during my NS period to gain the 1.3% interest rate + sign up for SAYS POSB acc? Gaining that 1.3% require me to leave the $1k in that deposit for 18mths. Have anyone tried this before?

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Carol Neo

07 Jun 2020

Should not put 1st as wait for more savings then put. If lastly u needed it then problem comes.

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Matthew Tan

07 Jun 2020

Undergraduate at NTU

Rather than putting that $1k into a FD which yields 1.3% ($13), do consider putting it into a more liquid savings account! This is because you'll be losing the liquidity for a difference of $3 compared to the jumpstart account. Below are 2 you can consider!

Singlife account which provide a non guaranteed return of 2.5% pa for the first $10k.

Standard Chartered Jumpstart Account which provide 1% pa from 1st July onwards.

I opened a SAYS account too which awards the 2% gift interest on the 13th and 25th month. This already acts as a 2 year FD for your monthly allowance from NS as the gift interest will be revoked if you withdraw any funds.

So definitely look into the savings account mentioned which provides liquidity for your expenses as well. Im personally using SAYS to save a portion of my allowance while my emergency funds are in the Jumpstart account.

Hopes this helps!

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