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Gideon Ng
20 Sep 2020
Blogger at FI Pharmacist
Hello, it's great that you're starting to be interested in personal finance in such a young age!
I would recommend you to use the Vivid Savings Account by Singapura Finance.
You are able to create it when you're 16 years old. What's more, it gives you an interest rate 0f 1.05% if you have up to $10k, and 1.3% if you have between $10k and $20k.
This interest rate is effective for your entire balance, so you're able to maximise your savings if you have more than $10k!
However, the weird thing about this account is that you will only receive a 0.25% for your entire balance when your balance exceeds $20k. As such, you should try not to exceed $20k in the account.
The interest rate is attractive for 16 year olds, but it comes with a cost.
There are no FAST transfers, you cannot make any GIRO payments, and you will be charged if you need to make a withdrawal.
I would treat it more as a fixed deposit account for you to store your money first. Once you reach 18 years old, you can close the account and sign up for the SingLife and JumpStart accounts.
You can read my in-depth review of the Vivid Account to find out more.
When you have the time, I would suggest to read up on investing. Once you're 18 years old, you can open a broker account or sign up for robo-advisors, which allows you to grow your money even further!
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Hello!
Investments and savings are separate.
At 16, it is great that you are looking towards ...
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My advice would be to save up for a lump sum investments. Since you are currently 16, you have limited avenues to invest in the market. Take these 2 years to read up about stock picking and when the time is right, open a brokerage account and start investing in indivdual stocks with the amount you saved up. Thereafter, continue individual stock investments together with RSPs and robo-advisors as means of passive investing. Of course, don't forget to leave some of your savings for rainy days as your emergency fund. Even if you are young, you have to factor in a certain amount of risk you are taking in your everyday life that something might happen. Respect Murphy's Law!
On a separate note, just wanted to say you have a huge headstart over many others when you are already thinking about getting your financial journey planned out this early. Keep it up and all the best pal!