Asked by Anonymous
I have an existing OCBC (expenses) and POSB (saving) account. I recently just opened DBS mutiplyer to get better interest rates and was thinking if I should close my posb account. Was also thinking if I should open a CIMB account to park my emergency cash there
Your plan is right, have 1 a/c for expenses and 1 for savings / super short term emergency / investment a/c (eg. DBS multiplier if you can get the higher interest like 2.%).
CIMB for emergency only get 1%, you can do a bond ladder with SSB at higher 1.95% (currently for a month). So when you need $ for emergency, use the super short term emergency account. If you need larger amount of $ for emergency and can wait for months, the bond ladder would have help balance both interest and emergency cash usage.
See this on how to apply Bond Ladder: https://kpo-and-czm.blogspot.com/2018/04/dbs-multiplier-ssbs-joint-account-higher-interest.html