Savings in the present times have been of utmost importance. It would be imperative for you to save money for the rainy day. During emergencies, you might not have adequate cash in your hands to take care of your needs. It brings us to the question, of what you would do if you do not have adequate savings in your bank account. Would you look forward to getting a personal loan? Are there other options available to meet your specific needs? How beneficial is a time deposit for savings?

Before we delve into the answers, let us understand fixed deposit accounts.

What Are Fixed Deposit Accounts?

Fixed deposit accounts offer a semi-flexible way to earn interest at higher rates with little-to-no risk. As for the process, consumers first submit funds to the bank for a set amount of time. This agreed-on period can be as short as 1 week or as much as 3+ years, though three, six, nine, and 12-month tenures are more common. Once this period ends, consumers receive their initial funds back, and interest–which is calculated based on a rate contracted when the funds were first deposited. While it is possible to recall funds before the end of the tenure, this often means forfeiting interest, and may even incur penalty fees.

Most banks in Singapore offer fixed deposit accounts, with much extending eligibility to foreigners and even individuals as young as 12 years old. Typically, there are no additional bank fees associated with such accounts, which also makes fixed deposits especially accessible as investment options.

Time Deposit Benefits And Drawbacks              

Find below Maybank Isavvy Time Deposit pros and cons.

Pros

1. Upfront partial interest for Maybank iSAVvy Time Deposit

2. Higher FD interest rate for longer tenures

Cons

1. Must have an existing Maybank online banking account for Maybank iSAVvy Time Deposit

Building Up An Emergency Fund

What is a good way to build the emergency fund? You would wonder about the question. The best way to build your emergency fund is to evaluate your monthly mandatory expenses like household expenses, children’s education fees, equated monthly installments (EMIs), and insurance premium payments.

Usually, six to nine months of these mandatory expenses can be kept in a large and established bank’s fixed deposit or liquid or ultra-short duration funds. The number of months of expenses to be saved depends on how secure your job or business is.

However, a provision for a minimum of six months’ expenses should be always in place. Once you have worked out the total emergency fund required, you can start building it by straightaway parking the money from the bank account. You can start a separate fixed amount every month in your bank account or park it in liquid funds until the balance of that account or folio reaches your planned emergency fund.

Finding Of Best Savings Accounts In Singapore

It would be imperative that you look for the list of best savings accounts in Singapore to address your specific money-saving needs. You might come across numerous available options to meet your specific needs. However, not all would be suitable to meet your specific requirements in the right way. Therefore, you should gather adequate information about the several available saving accounts in the region before investing your hard-earned money in them.

When it comes to saving money, rest assured that the banks would cater to you with the best available savings account options. It would be worth mentioning here that saving your money in a savings account with the bank would help you more than investing your money anywhere else. However, you should be prudent to seek the best savings account option suitable for your needs.