Singapore Watch

I like today’s Straits Times front page a lot. Somebody at ST is probably pissed about how the PAP is saying one thing about the banks: “Banks sound, system working well says Tharman”, while thousands of retirees might lose all of their life-savings due to possible mis-selling of minibond products by these same banks: $100,000 Life Savings GONE.

If you want to say something, but can’t say it outright, this is one creative way of doing so. Or maybe it wasn’t intended. Who knows.

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.