Are you amongst those searching for a very low-risk investment? If you wish to increase your money i.e. Singapore dollars with an extremely low-risk investment, you may speculate on opening a fixed deposit account. A fixed deposit in Singapore, which also stands for time deposit, is an interest-carrying account. From 28 June to 31 July, you can celebrate an additional interest rate of up to 2.0 p.a. on SGD fixed deposit promotion 2022. The money, which you will deposit over a certain period in the bank or other non-bank monetary institutions, the fixed deposit, delivers assured interest for that.
However, before making up your mind about opening a fixed deposit account, it is better to know everything about it in detail beforehand. Singapore dollar fixed deposit can also relish your peace of mind while increasing your funds with fixed returns.
Brief Information On Emergency Funds
An emergency fund is another bank account with money set aside specifically to pay for unforeseen expenses such as unpredictable medical expenditures, repair, and replacements of home appliances, the dominant car fixes, and most commonly unemployment or job loss. However, why exactly do you need an emergency fund?
Here is an interesting explanation of this question. The emergency fund creates financial protection that can protect you in times of need without depending on credit cards or high-interest loans. Especially in a debt situation, it is necessary to have an emergency fund as it can help you prevent more and more borrowing. The first and foremost step in this process is to get out of your debt and provide yourself with a way not to climb back into any kinds of debt.
How Much Should You Save For Emergencies?
Now, the question arises as to how much should you save, and what should you include in an emergency fund? There are two answers to the first part of the question, a short answer and a long one on how much to save. The shorter one is that you start small, just try to keep aside an estimate of S $500, but work your strategy up to half a year’s worth of expenses. Henceforth, the longer option would be dependent on your financial circumstances. Here a good option is to have sufficient to cover a period of around three to six months’ worth of expenses. This is required mostly when you are a seasonal or part-time worker, or in case you lose your job. You can then easily cover your expense with this saved money until you find yourself a new job. This is the reason you should have an emergency fund to avoid sufferings in critical situations cited above.
The second part of the question i.e. what to include in an emergency fund is also very important to know. There are a few things that your emergency fund should include, which are as follows –
- Housing – this is the most important and non-negotiable living expense to include in the emergency fund. This will include your bills and the rent of the house.
- Utilities – such as gas, electricity water, etc.
- Communication services, food, and transportation
- Health insurance premium and minimum debt payments
- Auto and home insurance
How Do You Decide Where To Keep Your Emergency Fund?
You can store your emergency funds in the best savings accounts in Singapore with a high-interest rate and easy access. As an emergency can knock on your door anytime, it is vital to have quick access.
Moreover, it would be prudent to save money for future needs. You might be having a great time at present, but the uncertainty your future holds requires you to invest money in fixed deposits. Always be prepared for the worse.
