Everyone tells us to invest, but how much is enough, and how much should be left behind for a rainy day? What about saving for a BTO and other commitments? That is the question See Kai Wen and Sue-Ann Tan put to listeners in a Straits Times podcast published on 5 October 2026, where the episode turns on liquidity and how liquid different investments actually are. It is a fair question, and it has a workable answer that does not depend on guessing. [1]
The answer is three layers, sized from your own numbers and matched to dates: money for bills that fall due soon, a buffer for surprises, and money set aside for a dated commitment such as a BTO deposit. What separates them is not the headline return but how quickly each pot can reach you, which is why MAS advises planning investments according to when you expect to use the funds. [1] [2]
First, size it from your own numbers
The MAS Basic Financial Planning Guide gives you the method rather than the figure. To work out how much you need in emergency funds, it says to compile your household and personal expenses in a month, including loan repayments, credit card bills, insurance premiums and taxes, then separate the essentials from the good-to-haves. That monthly essentials figure is the unit you will use for everything that follows, so it is worth doing before you look at a single product. [3]
The rule of thumb is to set aside at least three to six months' worth of expenses, and if your income is irregular, to aim for savings equivalent to 12 months. To illustrate the arithmetic only: hypothetically, if your essentials add up to $3,000 a month, three months is $9,000 and twelve months is $36,000 — and the Guide leaves the choice between them to you. MAS is candid that adequacy differs from person to person and from one emergency to the next, noting that a freelancer with unpredictable income may want more for lull periods, and that the Guide's steps are broadly applicable to most but may not cater to every individual's needs, circumstances and preferences. [3] [2]
Then match each pot to how fast it can reach you
Here is where the three layers come apart. The Guide suggests keeping money in a combination of savings accounts and Singapore Savings Bonds, and per MAS's product comparison Savings Bonds can be bought with cash or SRS funds but not CPF funds. The comparison records that a Savings Bond can be redeemed in any month with no penalty, with investors receiving the face value plus accrued interest, and MAS's FAQs state that redemption proceeds are paid out by the second business day of the following month. A $2 transaction fee, inclusive of GST, applies to each application and each redemption request. Usefully for planning: that timetable suits buffer money, not a bill due on Friday. [3] [4] [5]
T-bills and conventional SGS bonds sit on a different axis of risk rather than speed: MAS records no early redemption, with investors receiving the face value at maturity, a minimum investment of S$1,000 in multiples of S$1,000, and the ability to buy using cash, SRS or CPF funds. They can be traded in the secondary market, but if you sell before maturity, prices may be above or below what you paid. Fixed deposits come with their own timetable instead: CPF Board notes you cannot add or withdraw cash during the specific time period, and that withdrawing before the end date could incur early withdrawal fees or other penalties. [4] [6]
Deposits are also insured for up to $100,000 under MAS's Deposit Insurance scheme, administered by the Singapore Deposit Insurance Corporation — protection against a bank failure, not a shorter lock-in. [4] [6]
What does not belong in the rainy-day pot
Two things stay out. The first is the stock market: MAS does not recommend putting emergency funds there, because the money is meant for long-term investment while an emergency fund must be readily accessible, and an investment may not be immediately liquidatable for emergency needs without incurring losses. [2]
The second is CPF. MAS answers the question directly: CPF funds cannot be used as emergency funds, because specific conditions are tied to their use, and they are meant to meet retirement, healthcare and home ownership needs. CPF Board frames it the same way, stating that CPF savings are meant for your retirement and are generally for long-term purposes unless you are nearing retirement — and adds a practical warning that all CPF transfers and cash top-ups are irreversible. [2] [7] [6]
The step after that, in three dates
With the buffer fixed, the investing step follows: MAS's rule of thumb is to set aside at least 10% of your income to invest in your near- and long-term future, and you are encouraged to put aside more if you can. On the same reasoning, MAS says to plan investments according to when you expect to use the funds, consider lower risk and reward investments for short-term goals, and not take a risk you have no time to recover from — asking whether a loss would affect other commitments such as loan repayments. [2]
So the podcast question resolves into three dated decisions rather than one savings figure. Bills money stays where you can reach it today. Buffer money goes where it can arrive within about a month. Money for a dated commitment goes where it matures when the commitment lands, because that is the deadline you cannot slip. Before you act, check today's terms and figures on the MAS and CPF Board pages, and if your situation runs to more than a monthly expense list, MAS suggests a conversation with a financial adviser representative about your own circumstances. [2]
Read next
Sources
- Understanding liquidity and smart investment strategies | The Straits Times
- Consumer FAQs on Basic Financial Planning Guide ("Guide")
- Key Needs Rules of Thumb What to Do
- Products for Individuals
- Singapore Savings Bonds FAQs
- Grow your money with these safe investments in Singapore – CPF
- CPFB | Investing your CPF savings
BUTLER Magazine Editorial · AI-assisted research and writing, reviewed by our automated editorial team. Sources checked 2026-10-06. Featured image: AI-generated editorial illustration.