Here are suggestions on what you can do with your bonus, depending on the sum:

• $5,000 and below

Set up an emergency fund, if you have not done so already, and pay off some of that high-interest credit card debt.

For those who have just entered the workforce, Mr V. Arivazhagan, managing director, consumer banking group at DBS Bank, recommends starting a regular savings plan (RSP) which can be set up with as little as $100 a month.

'For those who have not set up an investment portfolio, your bonus can be used for the initial investment of $1,000 to build up your nest egg through an RSP plan.'

DBS currently has a 0 per cent sales charge for RSPs that feed into unit trusts. It is also offering a flat 1 per cent sales charge for all unit trust investments.

If you have an appetite for structured deposit products, United Overseas Bank is

offering Fortune Deposit Series 11, which guarantees the principal. The minimum investment amount is $5,000 and it pays guaranteed interest payments totalling 6.6 per cent of the principal upon its maturity after four years and 11 months.

In addition, you may earn a maturity bonus interest that is linked to the performance of the underlying basket of crude oil and gold.

• $10,000

If you have young children, Mr Albert Lam, investment director at IPP Financial Advisers, suggests keeping this amount as savings. It could be used for the purchase of new textbooks, tuition fees and enrichment course fees for the children.

Another option suggested by Providend chief executive Christopher Tan is to use your bonus to attend courses to upgrade your skills in your area of work.

So if you are a salesman, go for a selling course. And if you are a manager, upgrade your skills by attending a management course.

• $15,000 to $20,000

For the risk-averse, Mr Patrick Lim, associate director at financial advisory firm PromiseLand Independent, suggests parking some money in a fixed deposit. For instance, CIMB Bank is offering 1.5 per cent a year for a two-year tenure with a minimum deposit sum of $10,000.

Mr Lam says you could consider investing in a portfolio of eight to 10 funds to accumulate a nest egg for retirement or some other medium-term to long-term goals.

If you have already made investments, you could consider topping them up.

Ms Yash Mishra, head of private client advisory services at ipac financial planning Singapore, says you can also consider using your bonus to top up the CPF accounts of your siblings, spouse, parents or grandparents.

In order to qualify for tax relief on cash top-ups for your siblings'/spouse's CPF, the sibling/spouse must not have earned more than $2,000 in the previous year.

• $25,000

The last thing we want to do is to put all our bonuses into plain vanilla saving deposits as banks are now paying very low interest rate on deposits, says Mr Lam.

Instead, consider contributing to your Supplementary Retirement Scheme. The annual limit is $11,475 if you are a Singaporean or permanent resident.

You could also consider paying a lump sum on your home mortgage, says Mr Lim.

In addition, look into projects that you have been putting on hold - which part of your bonus could fund - such as renovating your kitchen, making over your children's rooms, or taking up language classes, says Ms Mishra.

Besides taking care of your personal needs, do not forget to invest in your loved ones, says Mr Lam. For example, use your bonus to set up a banking account for your children and, at the same time, inculcate in them the good habits of saving and investing.

Buy that diamond solitaire for the wife. You might get good deals from the various auctions going on. Or buy a nice bottle of wine that your spouse has been eyeing. A bottle of fine wine would cost $500 to $1,000.

Giving to charity is another option. After all, the joy you bestow on those who are less privileged or needy will be greater than what material goods can bring.

This article was first published in The Straits Times.