Contingency Fund

[blunomore]

To the financial types here : A contingency fund should be at least 3 x your monthly income, right?

What savings tool would you recommend for this fund ?

Thanks

 

[Waaib]

If you have an access account type bond I'd say there. Else an easily accessible account. Not sure if 32 day account works. I'd ask my bank what accounts they have that incur no charges. FNB has some accounts that incur no fees if you have keep them at a minimum positive balance.

 

[xrapidx]

32-day should work, as you usually get a months notice.

 

[Ecco]

as some of the guys are asking, what notice period etc.

For some emergencies, 30 day notice is no good. So keep it in mind, else you can go higher on a fixed deposit, or instant access to funds with something like a money market account.

 

[xrapidx]

If its an emergency, you could always pay a fee and get access to the funds... or ask for an overdraft of the amount.

 

[h4ppyfish]

Sanlam Liquid?

 

[koeks]

To the financial types here : A contingency fund should be at least 3 x your monthly income, right?

What savings tool would you recommend for this fund ?

Thanks

the piggy bank

 

[guest2013-1]

32-Day is best. Because sometimes life throws you with what you think is an emergency and you try and solve it by throwing money at it directly.

I'd go with an Access bond (NOT ABSA). That way you at least pay off your house and a load of interest on the bond while you are covered for contingency.

Rule of thumb I go by is don't save anything that can't be put into debt.

Currently on my last few thousand rand on my credit card. positive bank balance and SARS's money taken care of. I feel good. But don't know how long it will last. So will have to see

 

[blunomore]

Currently on my last few thousand rand on my credit card.

I envy you !

 

[blunomore]

Sanlam Liquid?

Sanlam Liquid has a sliding scale of interest rates which I only noticed recently. Only on balances of R 50 000+ will they pay the advertised interest rate of approx 11%. For lower balances, they pay about 8% or less interest.

 

[greg_SA]

I use my bond... Flexi Reserve with ABSA.

 

[supersunbird]

A Virgin Money credit card? (if you have the self control)

Save up 3 x months expenses and then you even might have a month or two or three extra depending on your credit card allowance...