By: PanzerGrenadier How often have we heard this saying:

“Cash is King!”

But in investment terms, holding your investments mainly in cash does not generate you very high returns under current conditions. However, even in the low treasury bill yields of 1% or less and fixed deposits hovering just slightly above 1%, you will find it challenging to maximise your returns on cash. 0.25% is pathetic! As part of my cash management approach, I also take the view that you should consider having at least three to six months worth of expenses or income as a cash or cash equivalent for your emergency fund. This is for you to mitigate unanticipated expenditures or emergencies that occur. Even three to six months worth of expenses means some serious cash which needs to be deployed to generate more than 0.25% returns from a basic savings account. I have managed to generate 1.2% returns on my emergency fund which is excludes my foreign currency fixed deposit which is much less liquid. These are very liquid funds that can be withdrawn by the following day or so by cheque, internet-banking or ATM. Read more...