Part 3/9:
An emergency fund acts as a financial cushion during unforeseen events—job loss, medical emergencies, or sudden expenses. The safety net should be easily accessible and secure, with options such as fixed deposits or Singapore Savings Bonds (SSBs) that guarantee capital preservation.
Where to park your emergency funds?
Fixed deposits: Low risk with predictable returns, but you may lose interest if you withdraw early.
Singapore Savings Bonds: Backed by the government, these offer guaranteed capital and flexible liquidity without risking your initial investment.
Treasury Bills & Short-term bond funds: Short-duration securities issued by the government, considered low risk and fairly liquid.
Important considerations: