Where to Park Cash?

It is widely advocated that we should maintain at least 3 - 6 months of liquidity (some say 6 - 12 months. For the even more conservative ones, 12 - 36 months). Some options where cash can be parked:

1. Savings or current accounts
Currently, most banks are offering interest rate of less than 0.5% for amount less than $10,000. However, it pays to do a little research. For example, Maybank is offering 1.08% for its iSavvy savings account. The catch is that this account can be only operated through internet, mobile banking and ATM cards. Service charges are applicable for over the counter transactions.

Higher interest rates can also achieved for monthly savings accounts such as POSB MySavings and OCBC Monthly Savings account.

2. Time deposits
For research on best deals: http://singapore-fixed-deposits.com/wordpress/

3. Money Market Fund

Money used for investment purposes may be kept with Money Market Fund which is less risky than normal unit trusts and incurs no sales charge. Rates are usually better than normal fixed deposits.

4. Singapore Government Securities (SGS)

SGS can be bought and sold over the counters at banks with a Debt Securities Account. The minimum sum required for investment is $1,000. Investment in T-bills can also be made with Phillip POEMS account.

Prices and yields can be monitor from https://secure.sgs.gov.sg/apps/goto/?app=dailyPrices

Interests, discounts as well as capital capitals derived from SGS are tax-exempted for Singapore residents.