Hi all! Do you guys include investments in SSB as part of your emergency funds? - Seedly
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Anonymous

Asked on 05 Oct 2018

Hi all! Do you guys include investments in SSB as part of your emergency funds?

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Kishor Bhagwat
Kishor Bhagwat
Level 5. Genius
Updated on 07 Jun 2019

Yes, just note that SSB is not immediately available to you, so factor in 1 month lag. It means you can keep 2 months of emergency in really liquid form, and the next 4months in SSB, and withdraw as you need every month.

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Jansen Ng
Jansen Ng

03 Apr 2019

Yupp this is good advice👍 i also consider SSB part of my less liquid emergency fund
Kenneth Lou
Kenneth Lou, Co-founder at Seedly
Level 9. God of Wisdom
Answered on 06 Oct 2018

Yeah for me, I also choose to put it in higher liquid places eg the DBS Multiplier so I can withdraw if I need it urgently.

SSB for me is for longer term sums of money which you may not intend to touch for 5 to 10 years :) Less liquid.

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Alex Chua
Alex Chua, Freshmore (Engineering System Design) at SUTD
Level 6. Master
Answered on 29 Feb 2020

U need to understand that emergency funds means you are taking the money almost immedi ately for use.

As long as take note of the time lag, it is a fine area to place your funds.

They are some better alternatives such as singlife saving account, multi currency, jump-start, cimb fast saver

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Geraldo L.
Geraldo L.
Level 7. Grand Master
Answered on 29 Feb 2020

If SSB forms the bond component of my investment, I would not include them as emergency funds. Conversely, SSB would still be a good place to park emergency funds because it is fairly liquid and capital guaranteed.

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Rais M
Rais M
Level 7. Grand Master
Answered on 25 Feb 2020

Yes. While SSB might not be so liquid to the extend you can get your money back immediatey, it is indeed a good alternative to park your emergency funds in the long run. Plus redeeming SSB is also a timing issue, it could take as little as 5 days or up to 30 days to get your cash back.​​​

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MT2020
MT2020
Level 7. Grand Master
Answered on 25 Feb 2020

To me, an emergency fund is suppose to be for an emergency, which means you will need to use the money immediately. For SSB, you have to wait till the next month to withdraw the money so there is still quite a bit of waiting time, therefore it is not part of my emergency. The emergency fund should be in a high interest savings account such as cimb fastsaver or standard chartered jumpstart.

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HC Tang
HC Tang, Financial Enthusiast, Budgeting at The Society
Level 9. God of Wisdom
Updated on 06 Oct 2018

Yes but I prefer high interest savings that is truly liquid that can take out anytime like DBS multiplier at 1.85% or more interest paid monthly 7th.

While for SSB, it only pay interest 2 times a year and emergency funds needs to be truly liquid. So I prefer something more easily accessible. Furthermore , 1 year SSB interview is at 1.88% recently updated.

See seedly blog post to find out more :

https://blog.seedly.sg/guide-investing-singapore-savings-bond-ssb-interest-rate-how-to-buy/

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