10 Aug 2020
It's not likely for DBS to improve their rates anytime soon right? I'm leaning towards SC JumpStart next as I prefer something fuss-free, but what are the odds that the interest rate will drop even further from 1%?
I'm also considering a SingLife account, but with everything being so volatile now, it feels like the 2.5% might drop anytime haha. Thoughts? Thanks in advance! :)
Hi Anon! Despite the slashed bank rates, I think its still important and beneficial to open a savings account with a bank. Even though Standard Chartered has slashed its rates for their Jumpstart account, it is still the best compared to other banks at 1%. You can consider diversifying into Singlife too and earn up to 2.5% interest rates on your first $10k. Do note that this figure is not guaranteed.
Given the current market volatility, we wont know for sure if the interest rates will be slashed but for now I would think it is good to diversify. Do consider investing too to beat the bank rates and inflation rates as well, but ultimately this is up to you and your needs, preferences and risk appetite. Hope this helps! :)
If you are employed/receiving a salary, it would be good to credit your salary with Multiplier. You can take advantage of it by using it as a "high interest" mixed spending and savings account where you use DBS credit cards for your monthly spending and crediting your salary.
On top of multiplier, you can also create Singlife. If you have spare funds or savings you don't wish to touch, you can just park the funds there to accumulate interest. Highly recommend sticking up to 10k SGD.
Moving beyond, I would strongly encourage you to ask yourself if you are ready to invest, what is your risk appetite, your investment horizon as well as your spare cash that you don't need in the short to medium term to invest them.
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MIN. ACC BALANCE
1.0% non-guaranteed + 0.5% bonus
RATE OF RETURN
1.0% for first $10k
DBS/POSB Multiplier Account
Standard Chartered JumpStart Account