Most people are not aware of Singapore savings bonds, and they miss an important section that they should know and could be beneficial for them. This savings bond is the best for individuals willing to do risk-free investments. In addition, almost everyone today wants to safeguard their money safe. Therefore, the Singapore savings bond or the SSB bond is a good option to go for. The purchasing of these bonds can only be done in multiples of $500 and that mature after 10 years. Unlike a regular ten-year bond, however, SSBs can be restored in any month for the bond’s face value plus accrued interest.

The interest in SSBs arrives with an increasing interest each year, evaluated in such a way that holding on SSBs for n number of years, which will be less than 10 years. It develops almost the same return as a regular bond with the persisting maturity of n years purchased at a similar time and carried to maturity. In such a way, the interest rate risk is eradicated. A maximum holding of $2, 00,000 worth of SSBs is restricted to the investors.

Singapore’s savings bonds are not movable, but the certainty that they are easily redeemable in any month for the face value of the bond added accrued interest eradicates the interest rate risk. These bonds are ensured by the government of Singapore.

Expenses To Include In An Emergency Fund

Now let us talk about what expenses should be included in an emergency fund? People are constantly told by experts to have an emergency fund for various crises, mainly for emergencies like the loss of a job or pay cut in the middle of a pandemic like the recent one. An emergency fund also known as the contingency fund is a certain amount set aside for uncertain and unpredictable catastrophes that might occur.

For specimens, medical hardships that are not insured, abrupt job loss, sudden travel due to family crisis, and more. With the contingency fund, the thumb rule is to collect a minimum of three to six months’ fundamental salary. This emergency fund should cover your expenses such as rent, EMI’s, loans, food, medical facilities, insurance premium, etc. for a few months.

Even though a canon of three to six months of primary salary is suggested, in actuality, there is a likelihood some might need a bigger emergency fund under different situations like the one we are facing right now. There are various factors on which the emergency funds of an individual depend like the individual’s essence of employment, dependents (minor or major), earning units of the family, ventures, insurance, etc.

For example, if an individual has steady employment and is fearless of his job loss, then one can schedule a smaller pot of funds of up to 3 months of expenditure. However, if they are from those fraction of people who are inclined to layoffs, then they could propose a bigger cushion in terms of contingency funds. By such means, one can adjust one’s emergency funds and go for a period of like 3-6 months or 12 months. You can choose the savings account accordingly by searching on Google – which is the best savings accounts in Singapore.

Opening Savings With The Best Bank In The Region

When it comes to saving your hard-earned money, your chances of coming across numerous banks in the region would be relatively higher. You should not be complacent with your choice of banking option available near you. It would be a boon for you to look for reliable banks offering the best available SSB saving options to you. They should be working to help you save adequately for emergencies.