Asked on 05 Oct 2018
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.
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.
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
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.
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.
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.
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 :