Where to place 6 months buffer?

[onedreamergirl]

I've seen it said a few times in this forum that we should keep a 6 months monthly expenses buffer before even considering investing. So my question then is, where should we place the 6 months buffer?

My thoughts are that:

1. The 1st three months buffer should be in something that yields interest but has no lock-in, e.g. GXBank (3%), GO+ (3.45%), anything else? There's Versa Cash also, but withdrawals are not instant.
2. The 2nd three months buffer can be in something that yields higher interest like FDs. The problem with this part then is which FD to invest in? It seems that banks are always throwing promos, so does that mean we should just keep hopping between banks? The promos I've seen lately are OCBC EIR 5% and UOB EIR 3.6-4%. Any others?

 

[sparklingangel]

@onedreamergirl Asnb fixed price funds. As liquid as FD and higher rate

Bumi - ASB, ASB 2 or Asb 3
Non- ASM, ASM2 or ASM3

 

[onedreamergirl]

@sparklingangel Thanks for the suggestion. I've looked into it, and it seems that they aren't that liquid? The monthly online withdrawal limit is RM1k, for anything more I need to go over the counter. Is that your understanding also?

 

[sparklingangel]

@onedreamergirl You can do unlimited withdrawal otc at branches of asnb, maybank, cimb, rhb, hong leong, bsn, Affin, alliance and pos Malaysia.

Otc withdrawal is immediate, can get in cash or transfer to your casa.

That's still pretty liquid imo.

 

[nativepride]

@sparklingangel Very liquid

 

[sonia5555]

@onedreamergirl The monthly withdrawal is actually RM2,000.

I stand behind ASNB as a good place to invest. In terms of liquid or not, it depends. Withdrawal takes 24 hours to complete. Maximum through the app is RM2,000 withdrawal. Anything more, you need to visit the branch.

There's a branch near my house. I only need to give my thumbprint to withdraw (had done it multiple times). Take less than 10 minutes to do so. Then i can just deposit using the app in the future when I get my salary

To me, RM2,000 within 24 hours is pretty good enough for emergencies. Other people might view it differently though.

 

[jb123]

@sonia5555 Is ASNB principal protected?

 

[nativepride]

@jb123 Yes PIDM up to 200/250k. Cant remember which is it.

 

[nativepride]

@sonia5555 2k limit is online withdrawal