Have some extra cash around? If you are saving for a rainy day, how about opening a high(er) interest bank account and letting your money grow even more?
Currently in Singapore, a few banks are offering accounts with higher savings. Most of them are able to do so, as these accounts are online bank accounts, and thus do not offer over-the-counter services. This means that you have to transfer funds through online banking. However, some of these banks do offer ATM Cards.
But first of all, let’s take a quick peek at the interest rates offered:
UOB High Yield Account (link)
If you had a million dollars, this account currently offers the highest interest rate of 2% 1.60% 1.2% p.a. Other than that, it’s interest rates are not as attractive as the others listed below.
Maybank iSAVvy (link)
iSAVvy is a good bank account to have if you have between $5k-$50k. It’s interest rate of 1.68% 1.08% is the highest in the market for this amount range.
iSAVvy is revising their rates from April 4th. They dropped their interest rates from 1.08% to 0.88% for balances between $5k-$50k, and 1.28% to 1.18% for deposits balances $50k-$1mil.
iSAVvy upped their interest rates from Oct 20th. For balances between $5k-$50k, interest is back up to 1.08%, and for deposits balances $50k-$1mil, its now 1.38% They do provide an ATM card to allow for easy withdrawal of funds when you need them.
However, for balances less then $5k, Fairprice plus may be the best at the moment.
NTUC Fairprice Plus (link)
The Fairpriceplus is by far my personal favourite. If you currently have trouble maintaining the $500 limit most bank accounts required, and do not need to write checks, this account would be suitable for you.
- Requires no minimum balance
- ATM linked to a Debit/Credit card provided
- Cheque deposit box available for depositing pay cheques
- 1% interest on balance
- Earn Linkpoints at NTUC and various merchants
- No counter services available
Banking services for Fairpriceplus is provided via OCBC.
Standard Chartered e$aver (link)
Standard Chartered was the first bank in Singapore to offer the concept of the high interest savings account. The reason they are able to do that is because it is a no-frills bank account. This means that counter services are not available, and since no ATM card is issued, this bank account is solely virtual, and requires no minimum balance. However, transferring your funds to and from this account is simple, as you can link it to your current bank account.
- Requires no mimimum balance
- NO ATM card/passbook/cheques
- Only accessible if linked to another bank account
Standard Chartered use to offer the highest interest rates. It has since undergone several rates revision, and with it’s latest revision, it’s interest rate of 1.2% has been reduced to 0.8% 0.78% 0.5% for amounts below $5k.
e$avers used to be my preferred account for savings, but with the revision, it makes more sense to hold a Fairpriceplus account instead, since it offers 1% and has all the necessities of functioning as a primary bank account.
Which bank account do you have?
** Figures have been updated to reflect change in bank interest rates. (1Feb08)
** Figures have been updated to reflect change in bank interest rates. (4Feb08)
** Figures have been updated to reflect change in bank interest rates. (24Jul08)
** Figures have been updated to reflect change in bank interest rates. (4Aug08)
** Figures have been updated to reflect change in bank interest rates. (20Oct08)
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20th October 2008
Monthly Savings Plan
It seems from the comments below, that some readers are more interested in Monthly Savings Plans, and how their interest rates fair. OCBC and POSB both have such plans.
Here are their rates:
For the moment, OCBC Monthly Savings Plans are the way to go. But if you are a POSB customer and prefer to keep it all with one bank, 0.45% is still higher than the conventional bank interest rate.
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20th October 2008
Fixed Deposit “war”
With the stock market swinging more down than up recently, and banks having liquidity, people are finding safer havens for their money, and banks are looking to get more people to put money with them. Thus, the “Fixed Deposit war”. Banks have been offering higher than normal FD interests for periods as short as 3 months.
If you do not mind locking your money up for some time in return for much higher returns compared to the above mentioned stuff, check out the current fixed deposit rates at various banks, and see if there’s one that fits your tastes. Whatever you do, please do read the fine print.
Check out this blog* which tracks current promotions pertaining to Fixed Deposits.
*disclaimer: singapore watch is not related to singapore fixed deposits blog, and will not be held responsible for any content on their site.
[...] kimnixon wrote an interesting post today onHere’s a quick excerptRequires no minimum balance - ATM linked to a Debit/Credit card provided - Cheque deposit box available for depositing pay cheques - 1% interest on balance - Earn Linkpoints at NTUC and various merchants - No counter services available … [...]
Pingback by » Earn up to 2% pa in a Savings Account — January 30, 2008 @ 3:04 am
Nice Job! I like it.
may i know why banks in singapore like DBS, HSBC, CitiBank… is not stated inside?
Would you mind to add them in for reference also?
Comment by chun — March 10, 2008 @ 1:12 pm
Hi Chun,
I didn’t find any accounts in the banks that you mentioned, that had attractive interest and yet functioned as a normal bank account.
POSB has its “MySavings” account, while Citibank has a “Step Up Interest” account. However, their interest rate can go up and down based on how much you save each month, and whether you make any withdrawals (which would then drop you to the lowest interest rate).
I personally prefer bank accounts which are clear cut. Thus I did not include accounts that were too complicated.
Comment by Justina — March 11, 2008 @ 12:16 am
Hi,
for the NTUC plus saving account right? i must be a NTUC member right? and is the interest credited per month like May Bank Isavvy?
Thank you.
Comment by jabalang — May 20, 2008 @ 5:07 pm
Hi jabalang,
I’m assuming you mean NTUC Union member? You don’t have to be an existing NTUC member to sign up for this account. Neither does signing up for this account make you a union member, though you can still earn NTUC points on transactions made with your NTUC Visa card.
It’s basically really the same as opening a normal bank account, just that your bank account is with NTUC (who uses OCBC to provide the banking services).
Interest is credited monthly.
Comment by Justina — May 20, 2008 @ 10:20 pm
Hi,
currently I’m finding the best interest rate in Singapore, your post made a very detail analysis. But is there a better way to maximise the extra cash?
Would appreciate your guidance. Thanks! =)
Comment by Shumin — June 7, 2008 @ 3:57 pm
Hi Shumin,
The above mentioned interest rates are a safe way to keep your extra cash, and of course the most liquid. There is no risk of losing your capital, but of course the trade off is that your money grows a lot slower.
There are other ways to grow your cash portfolio, like putting your money in money markets (through platforms like dollardex.com), or by investing, but these do not have guaranteed returns, and investing usually requires a longer time frame, which might lock up your money when you need it the most.
Of course you can consider investing in blue chip shares, those that pay dividends, and REITs, which also pays dividends.
Ideally, one should mix and match. Just my thoughts. Hope that helps.
Comment by Justina — June 7, 2008 @ 10:27 pm
Thanks for sharing Justina!
I’m just wondering is there any difference engaging investment platforms like the one you mentioned and those common financial banks like Hong Leong Finance?
Which is better?
Comment by Shumin — June 11, 2008 @ 3:10 am
Different platforms have different fees. It’s best to check out the fees before choosing a platform. I can’t really advise much concerning these. Sorry.
Comment by Justina — June 17, 2008 @ 1:29 am
I see.. Thanks a lot! =D
Comment by Shumin — June 18, 2008 @ 3:24 pm
Esavers currently have a promotion at 1.88% PA.
Comment by Nap — October 1, 2008 @ 10:21 pm
Thanks for your effort.
I finde POSB Mysavings account now rather attractive. You may wish to include this in your blog or website.
Thanks.
MYSAVINGS ACCOUNT
(Interest rate is based on the Monthly Savings Amount)
FOR MONTHLY SAVINGS AMOUNT
$50 - $290 0.4500
$300 - $790 1.0000
$800 - $1,490 1.2000
$1,500 - $3,000 1.5000
Comment by Jason — October 5, 2008 @ 10:49 am
Hi!
I’m a student looking for a high interest rate account, fixed deposits also can. I understand that should anything happen to a financial institution, we’re only insured of $20000. As I currently already have a FairPricePlus account that’s hitting that amount soon, i’m hoping you can advise me on other alternatives. Some inconvenience is alright as I can continue to use my FPP as the main account.
Comment by joanne — October 11, 2008 @ 11:24 pm
Hi Joanne,
You may want to try one of the other banks listed above if you need the fluidity.
If you don’t mind locking your money in fixed deposits, you might want to check out Singapore Fixed Deposits.
Do note that the insured amount of $20k includes money put in Fixed Deposits, so make sure your total amount at the bank doesn’t exceed that.
Also note that if for example, you currently owe $6k for a OCBC credit card, and have $20k in the bank, should the bank fail, your net amount you would get is $20k-$6k=$14k.
The other alternative is 3 mth Treasury Bills.
Comment by Justina — October 14, 2008 @ 12:07 pm
erms how does that 3 mth treasury bills work? not much info from link? is it a govt fixed deposit?
Comment by joanne — October 14, 2008 @ 9:32 pm
Treasury Bills are Government Issued. Maybe you can check their site for more info: http://www.sgs.gov.sg/index.html
I haven’t actually invested in Treasury Bills before, but I believe you can purchase them online via platforms like POEMS and other online trading platforms.
Comment by Justina — October 15, 2008 @ 5:18 pm
i’m currently thinking of opening a savings accounts but are clueless bout all the high interest rates offered by some of the banks…..hoping for any advised on which banks thats offered high interest rates.. thanks….
Comment by yan — December 30, 2008 @ 8:11 pm