Where do you park your emergency fund and why? ? - Seedly

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Asked by Anonymous

Asked on 14 Sep 2018

Where do you park your emergency fund and why? ?

I've managed to save 6 months of my monthly income and currently residing in DBS multipler account (at interest 1.85% only). Is this the best way to park emergency funds? Where do you park your? TIA

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Yeap. Its able to withdraw anytime you want. Say if you've incurred hospital bills and there's excess will you want to wait for a month to be able to withdraw and pay?

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Usually emergency is for : Medical expenses in case if accident or any other Unplanned situations happens that requires $. So funds needs to be available within 24 hours or some cases within then month.

Therefore , high interest bank account such as :

DBS multiplier for salaried employee or

CIMB for self employed

Or in SSB for within a month selling encashment

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Emergency funds in my view should be accessible within 24 hours. Putting it in a high interest account like DBS multiplier is a good move.

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You can try Singapore savings bonds. Good interest rates the longer you hold. Liquidity is 1 month withdrawal time.

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Gabriel Lee
Gabriel Lee
Top Contributor

Top Contributor (Dec)

Level 6. Master
Answered on 14 Sep 2018

That's a pretty good interest to park your money in and safe as well since it's your emergency funds. You can consider purchasing Singapore Savings Bonds as in the long run, it offers higher interest rates of more than 2%. Moreover, it's liquid so you can sell it anytime should you need the money.

Personally, I park my emergency funds in CIMB's FastSaver account which offers 1% interest since I'm still an NSF, so I don't qualify for higher interest savings account like DBS Multiplier. I put my spare cash into CIMB's Fixed Deposit which offers 1.84% interest for locking it in for 12 months.

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