facebookFresh graduate here looking to become a financially responsible adult and making the best out of this COVID-19 situation. Looking for recommendations on which bank accounts to open too. Any advice? - Seedly

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Fresh graduate here looking to become a financially responsible adult and making the best out of this COVID-19 situation. Looking for recommendations on which bank accounts to open too. Any advice?

Hi all, I've been doing some readings n hv some qns,
I have about 7.5k in savings n am looking to open a HYS acc (dbs multiplier/ocbc 360) but i'm also looking at singlife for their higher %. I'm starting a traineeship (9 mths duration) soon but i doubt i can apply for a DBS CC to make full use of the DBS % right? Which would u recommend?
I'm also intending to pay off my tuition fee loan as much as i can to take advantage of the 0% interest now, is it wise of me to do it aggressively now?

Discussion (2)

What are your thoughts?

Duane Cheng

Duane Cheng

27 Jul 2020

Financial Consultant at Prudential Assurance Company Singapore

Hi Gavin,

One of the other options you can use is the UOB one account. The main difference between the offerings by the 3 banks, is that UOB allows debit card spending to qualify for your interest calculations. If currently you are unable to apply for a CC, or you do not want to apply just for the sake of having a HYS account, then UOB one is an option you can explore.

The current interest rate for UOB one's first tier, is also the highest in the market today standing at 1.0% vs 0.8% (OCBC), and 0.9% (DBS).

If your student loan is currently interest free, you can just stick to the current repayment schedule, and refinance as you go along. You can pay off your loan earlier, however it will come at the expense of your current day liquidity. As you start your employment, the loan amount will be managable (although irritating). Do check with your student loan provider, whether an early repayment would have penalties attached to it as well.

I do hope i was able to answer your questions! Have a great week ahead!​​​

Tan Wei Ming

Tan Wei Ming

24 Jul 2020

Founder and Writer at Frugal Youth Invests

You should use Seedly Savings Account calculator to determine which savings account yields the higher interest.

https://seedly.sg/tools/savings-account-calculator

If you have sufficient fund to pay off the loan, it is definitely advisable to do so.

I will definitely be aggressive in paying off my loan as I do not want the interest expense to snowball.

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