May I take a moment of your time to reflect on this important matter called MONEY?Did you know that your hard earned money sitting in your bank’s savings account is wasting away?
Why do I say that?
The simple reason is that the interest rates for savings accounts range from 0.1% p.a. to 0.7% p.a.
Example : UOB’s Savings Rate ranges from 0.1% to 0.25% p.a.
UOB’s Fixed Deposit rates range from 0.1% ( 1 month ) to 0.7% p.a. ( 36 months )
Singapore’s consumer price index may rise 4% by the fourth quarter, accelerating from March’s 1.6%gain, the Monetary Authority of Singapore said in a twice-yearly review in April 2010.
This means you are losing your spending power every year if most of your money is idling in the bank!
Most financial planners agree that one should have enough savings in our bank’s savings account to last 3 to 6 times of our monthly expenses.
Some advocate 6 to 12 months.
Too much savings here is not good due to the miserably low interest rates.
You should invest or place any excess amount in higher yielding financial instruments.
A Life Insurance company has just creatively addressed this issue by launching a new series of savings plans that gives you the flexibility of a short term commitment of 5 years and a choice of maturity dates of 8 or 10 years. You can also start withdrawing cash from the end of 5 years or you can leave the cash to earn an interest rate of up to 3.5% p.a.
If this sounds good enough for you, please drop me an email or call me to take action today!
Remember, don’t put all your eggs in one basket!
