Asked by Anonymous
Updated on 18 Apr 2019
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
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?
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
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.
Top Contributor (May)
You can try Singapore savings bonds. Good interest rates the longer you hold. Liquidity is 1 month withdrawal time.
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.