Friday, May 22, 2020

Warchest & Emergency Funds

Overall:
Warchest/ shares ratio remained high, which should be reduced for better return on capital. 
Emergency fund can cover > 2 years living costs, which can be further reduced (1 years should be good enough).

Here is the list of accounts where i have parked my war chest and/or emergency fund:

Standard Chartered BonusSaver 
1.6% interest (fulfill partial criteria only - salary bank in, credit card spending > $500, bill payment)

Standard Chartered Esaver
1.05 - 1.2% interest.
Drawback - Only for 2 months on incremental balance. 

Singlife Account
First $10,000 - 2.5% interest
Next $90,000 - 1%
Benefits - Get insurance benefits based on account balance
Drawback - Interest rate subject to change (no guarantee)

SRS 
Used to buy Singapore saving bond, wait for opportunities. If things go wrong, this can be withdrawn & use as emergency fund, with 5% penalty.

Forex Currency FDs 
~2% interest

CPF OA 
Always ensure OA balance sufficient for 1 year housing loan installment


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