I have 30k in UOB acc including 5mth emergency fund. I want to hit 50k to max my interest. Does it make sense to use say 10k from it and use it in SSB / STI ETF and cash out instead? Mid 20s here. - Seedly

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Asked by Anonymous

Asked on 16 Mar 2019

I have 30k in UOB acc including 5mth emergency fund. I want to hit 50k to max my interest. Does it make sense to use say 10k from it and use it in SSB / STI ETF and cash out instead? Mid 20s here.

Currently doing DCA into etf with my salary. Having satisfied the criterion for bonus interest in UOB, my effective annual interest is 1.9% due to the base amount. By having more cash in the account would translate to higher interest bonus (>2%). And the only way would be investing in etf/ssb (low risk profile here). Would taking out say 10k from my account and using it for SSB be a better option rather than having the full amount in the bank?

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Ordinary Yc
Ordinary Yc
Level 1. Freshie
Updated on 21 Mar 2019

I believe you are using UOB one account. This question is subjective, however my below is my personal point of view. Since you are in your mid 20s but you have mention you are risk averse. It really depend on your time horizon of investment and your personal commitment. Ask yourself, whether you have at least the basic insurance coverage example H&S policy? Do get yourself covered first before any investment. It's good that you had set aside emergency fund of at least 3 to 6 months.

If you had basic insurance coverage. My view is Singapore savings bond will require long term investment and commitment, however you could say it's low risk or rather no risk. Once you have done it. You could look for low risk stock/blue chip by opening a CDP account from SGX. You will then diversified your portfolio.Anyway, since you are still young. You could actually open up and accept more risk. Good luck to your investment

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Dydy Nalor
Dydy Nalor
Level 1. Freshie
Answered on 16 Mar 2019

Yes just on

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