facebookI have $20,000. Should I a) apply for a POSB Everyday credit card to increase my interest rates to 1.85%, or b) move my funds to StanChart Jumpstart account for 2%? - Seedly

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Anonymous

02 Mar 2020

Saving Hacks

I have $20,000. Should I a) apply for a POSB Everyday credit card to increase my interest rates to 1.85%, or b) move my funds to StanChart Jumpstart account for 2%?

Just opened a DBS multiplier account but only crediting my salary. Asking this question as I’m slightly uncomfortable moving most of my savings to a bank (StanChart) that I’m unfamiliar.

Discussion (8)

What are your thoughts?

Why not both!

I am putting $20k in SCB JumpStart and salary credited to DBS Multiplier. POSB Everyday is not my main card so I make a small payment (e.g. public transport using SimplyGo) every month to satisfy the CC category.

SCB JumpStart is SDIC protected and you can access your savings easily by transferring to DBS via FAST or PayNow.

You should move your funds to standard chartered jumpstart to get the 2% interest. As i believe you are still quite young, there is no need to apply for a credit card at this point in time.

Andy Sim

Andy Sim

01 Mar 2020

HR Professional at a Financial Institution

Hi Anon, you can maximise the 20K into SCB Jumpstart account and don't touch it. Remain your salary crediting into your Multiplier, apply for a cc to earn higher interest (since there's no min spend) and accumulate your money there again. So in essence you'll have 2 bank accounts.

Banks in SG are generally safe. Your Jumpstart account is also SDIC insured up to 75K so don't worry about it :)

Hi there, I faced a similar issue as you. I opened a DBS Multiplier Account when I started working and even before that, most of my savings were in POSB savings for pretty much the entirety of my life. I do think there are some things to consider like accessibility of ATMs, how often you pay with card vs cash.

For me, I left a small amount in POSB for my spending and transferred majority to StanChart Jumpstart and OCBC 360. However with salary crediting, you can also try looking around other hurdle savings account to see if any of them can offer you a rate above 2% given your spending habits etc.

Alex Chua

Alex Chua

01 Mar 2020

Seedly student Ambassador 2020/21 at Seedly

Most here will suggest you to maximise your 20k into jump-start 2%.

U should probably start by unde...

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