facebookThe core inflation rate is around 1.4-1.9% in Singapore, which is higher than many saving accounts interest rate. Do you think it makes sense to invest instead of keeping money in saving accounts? - Seedly

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Anonymous

10 Nov 2020

Saving Hacks

The core inflation rate is around 1.4-1.9% in Singapore, which is higher than many saving accounts interest rate. Do you think it makes sense to invest instead of keeping money in saving accounts?

Discussion (5)

What are your thoughts?

Kenneth Lou

Kenneth Lou

02 Nov 2020

Level 14·Co-founder at Seedly

Yes the core-inflation rate stands at around that %. However, in this year 2020, because of a weakening economy we are expected to see this inflation rate reduce, to under 1%. But we'll leave the economists to confirm this once the year is over.

That being said, I would highly recommend you to look at investing to get between 4-5% returns p.a but that is on top of your rainy day funds (which are savings).

So what I would advise personally doing is to have enough savings hopefully at between 0.5% to 1.0%p.a interest, while investing most of your other funds into investments through Robo-Advisors for beginners (which take a broader approach of index investing and ETFs globally).

And adopt a long term approach, longer than 10 years as well.

Hope this helps!

View 1 replies

Jiayee

Jiayee

10 Nov 2020

Level 11·Salaryman at some company

Investment is risky so you need to have enough cash (emergency fund) so that you will never be forced to liquidate during a loss. If you need the money in a few years' time, portfolios with higher risks come with higher volatility and the returns may still be negligible or negative in short term.

Yes definitely! That is one of the most common reasons that are shared for why investing is so impor...

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