Thursday, March 29, 2007

Invest in fixed deposit for one month

Hi Mr Tan,

I have some cash which I need to use for the down payment of my house in May. I have left this in the savings account which gives peanuts.

Is it still worthwhile to put this in the money market and take out after a month or so?


My reply:

I suggest that you put the money in 1 month fixed deposit. You should be able to get 2% p.a.

If you put in the money market, it can earn 3% to 3.5% p.a, but you are subject to some risk of fluctuation.

As you are investing for 1 month, it is better to keep things simple and invest in the fixed deposit.

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