Mrs Gan gave 1/5 to her daughter, so 4/5 remains. She saved 7/8 of that remainder in the bank.
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• Daughter → 1/5 of whole = 8/40
• Remainder → 1 − 1/5 = 4/5 = 32/40
• Saved in bank → 7/8 × 4/5 = 28/40 = $$\frac{7}{10}$$
Mrs Gan saved 7/10 of the money in the bank.
Check: Daughter 2/10 + Saved 7/10 + Not saved 1/10 = 10/10 = 1. ✓