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Anonymous

19 Oct 2022

βˆ™

Adulting

Advice on splitting bank accounts

Hi everyone, my first post here in the measly effort to adulting.

I currently have:

  1. All my cash in DBS Savings Plus Account
  2. I send my monthly expense budget to OCBC Frank Debit
  3. DCA to Interactive Brokers for my investing

This is obviously a bad way as I'm only getting 0.05% p.a. on my savings so I'm planning to do these instead:

  1. Open SCB Jumpstart and transfer 20k here to max out the 2% p.a. straight away
  2. Open CIMB Fast Saver and transfer the rest of my savings here. From here onwards, monthly savings will go here too
  3. Close OCBC and use my DBS for my daily spending

By doing points 1) and 2) above, I would pretty much have no cash in my DBS except the monthly expense budget. However, I found out DBS has $1,000 Minimum Average Daily Balance (MADB) so I'm wondering how do I handle this?

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OCBC Frank has no minimum balance but I prefer to use DBS as their iBanking service has never failed me and it has both PayLah and PayNow. Should I just leave $1,000 savings permanently in my DBS? Or it's not worth it and close DBS and just use OCBC?

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Sorry it's very long as I am confuzzled. Any help would be greatly appreciated and have a great day!!

Discussion (1)

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thefrugalstudent

24 Oct 2022

Founder at thefrugalstudent.com

I'd also prefer to use DBS since PayLah is quite convenient when card payments aren't accepted.

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You can open a DBS multiplier account - I believe the MADB is waived until you're 29, so you won't have to worry about it for awhile.

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Then, you can close your DBS savings account as you'll be charged a fall below fee for every month you don't meet the MADB.

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