Why do you need an Emergency Savings Account
Nobody has an idea of what the future holds. It may be sunshine, and all of a sudden dark clouds come along, changing the whole scenario within a glimpse. At times, everything might be going perfectly well in our lives: we are making a comfortable income, living life, and enjoying all of the moments and opportunities that are come along. It is in these times we fail to think about the future, or we do, but in an exaggerated manner with positive thoughts.
However, emergencies do occur. Let us imagine a scenario. You are on your way to work one fine morning, but all of a sudden, you meet an accident. Hospital expenses become unbearable to handle, but you will be good to go for treatment if you had your emergency savings ready. Moreover, you can utilize the savings when the bank is asking you for a credit advance. You might also have some unexpected home reworks. Your car might stop functioning one day out of the blue. Having an emergency savings account also allows you to lend a helping hand. What if one of your family members becomes sick one day? Be the one prepared to step in, instead of the one who needs to borrow from others.
Setting up an emergency fund is one of the most sensible measures you can take. Having an emergency fund is mandatory. It has to be mandatory because you never know what the future is going to bring into your life. What does matter is how well-prepared you are to meet them, and the first step is to set up an emergency savings account.
How much to save?
Calculate the expenses and financial needs that you have each month: electricity, water, mortgage, food, etc. the emergency fund must be able to cover these expenses for 3 to 6 months in case we do not receive any income during that period without the need to sell any of our assets.
Depending on your job's security, family situation, unforeseen issues like accidents, disaster, hospital stay, and other sources of liquidity; the amount you should save may change. At a minimum, you want to have at least three months of living expenses available in cash.
GIGANTIQ vs. DASH EASYEARN vs. SINGLIFE
After sharing the need for emergency funds, let us share the top 3 high-yield savings account you can sign up for today. We have selected the best among the rest with at least a 1.5 % interest rate, high liquidity, and no penalty for early withdrawal.
I have signed up for all 3 accounts, and my recommendation would be: GIGANTIQ, Dash EasyEarn, SingLife, in that order.
Placing your emergency savings with GIGANTIQ will give you 1.8% interest per year on the first $10,000. Each year you keep $10,000 in the account, you will receive $180. There is no lock-in period and you can withdraw the amount any time you need it (most suitable for emergency funds). If you exceed $10,000, GIGANTIQ continues to offer 1% interest for the rest of your funds, making it the most flexible account. If you deposit $100,000, this means getting $1080 a year. They also have a death benefit of 105% of the value of your account.
In order to set up the account, you need to top up a minimum of just $50. While there is a $0.50 - $0.70 withdrawal fee, this is equivalent to less than 2 days of interest. It is definitely worth more to place your money in this high-yield savings account as compared to your bank.
All the reasons above make GIGANTIQ irrefutably the first account I will sign up for to replace my bank account regardless of my savings amount today. Locking in the 1.8% interest is the most important next step for me in this low-interest rate environment. (Etiqa has also stopped accepting savings previously - Elastiq - so this high interest might not be available for long).
This savings account has multiple benefits that you can take advantage of. You are going to obtain a 1.8% yearly benefit for up to $20,000. Each year you keep $10,000 in the account, you will receive $180. The account also carries a death benefit of up to 105% of your account value.
In order to set up the account, you need to top up at least $2,000. While there is a $0.70 withdrawal fee, this is equivalent to less than 2 days of interest. It is definitely worth more to place your money in this high-yield savings account.
Note: New sign-ups are currently on hold since 15 Dec 2020.
You will earn 1.5% annually from the money that you have in your account, up to $10,000. If you place $10,000 inside the account, then you are going to get $150 a year. Additionally, if you top up beyond $10,000 up to $100,000 in your account, the additional amount will be given an interest rate of 1%. This gives you the opportunity to make up to $1,050 a year. The account also carries a death benefit of up to 105% of your account value.
The emergency fund will be the first line of defence to help you prevent more issues from exacerbating. Hence, start by signing up for your emergency savings account today!
If you know someone who is struggling with their savings, share this article with them so they understand the importance of emergency savings and how to grow their funds.