Accumulate short term savings in a bank account

Dear Mr. Tan,
What is the best way to invest $200 a month?

REPLY
You can accumulate the savings in a bank account. If you join a monthly savings plan, you may be able a higher interest rate on your savings.

After you have accumulated sufficient savings, you can use it to buy Government Bonds or invest in the STI exchange traded fund. or a low cost investment fund.

The advantages are:
1. 100% of your savings is intact
2. You can earn a better return from the investment fund or government bonds.

Do not invest in an insurance product where 18 to 24 months of your savings are taken away as charges to pay the agent and other expenses.

Do not pay high charges for your investments. Read this FAQ:
http://www.tankinlian.com/faq/ilp.html