Started working full time just last year and i heard this is a good practice and I really hope to review this process for myself this year and automate it possibly. Currently:
Please share how you split your money into separate (and which) bank accounts for savings, investing, spending, salary credit etc!?
Need some advice please! Thank you.
Fellow class of 2020 🤪 HAHHAH here's how I segment mine for now:
Spending - Standard Chartered JumpStart 1% cashback debit card
Salary Credit & Investment - DBS Multiplier
Liquid Emergency Savings - Singlife 1.5% interest p.a. (from 29 Jan 2021)
Less Liquid Emergency Savings - Syfe Cash+ 1.75% interest p.a.
Personally, I use DBS Multiplier as an intermediary because it is the most convenient for me with regards to:
Using of PayNow / DBS PayLah
Transfers between savings / spending / investment accounts - I fund everything from DBS Multiplier
So I'm not particularly concerned with the interest rates for DBS Multiplier, because I'm not in the position right now to hit multiple categories. I just ensure that there's a reasonable amount for me inside for convenient daily transactions. If I need anything more I'll just transfer from Singlife accordingly.
Hope this helps!
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I'll share mine.
OCBC 360 for salary crediting and war chest. I find it fuss free as I am not forced to spend on a OCBC credit card or take a home loan with them. Just crediting salary and saving $500/mth unlocks a decent amount of bonus interest. I transfer anything in excess of the bonus savings requirement to my POSB
POSB for day to day spending. This account has to keep around 3 months of liquidity. Every few months I will transfer excess money into my trading account for investing
CIMB for emergency funds. Since there is no criteria imposed, I leave my emergency stash here. I'll never touch it except in an emergency. It helps that they do not have ATMs all around the island too.
Ultimately, we just need to find a method that suits us. Note that I do not bank very heavily on the 'bonus interest' offerings from the banks to squeeze more, as interest rates keep changing and I would rather focus on my work and such instead of over-fussing over trying to squeeze an extra 0.25% for example.
Lastly, I definitely don't invest or insure with the banks just to unlock extra interest. That is putting the cart before the horse. If the banks have something I need (so far nothing yet), then the extra interest is just a bonus by-product to me.
Hi Bryan. Automation is a good choice as it frees up valuable attention/memory. Here's how I do mine...
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DBS Multiplier Account
Up to 3.8% p.a.
MIN. INITIAL DEPOSIT
MIN. AVG DAILY BALANCE
OCBC 360 Account