My multiplier account gives quite a bit of interest every month, 1.8% if I'm not wrong, if we shift most of the savings into the joint account, is it not worth it? Or should one of us open a high interest savings account and transfer money there, although it is only under the name of one of us?
Deedee and Justin have provided good answers to your question.
The key is to do your research on current interest rates and plan your budget accordingly.
My wife and I have a joint account too, with which we paid big ticket expenses from.
But when we got married, we didn't have a joint account. We simply come to a common agreement on how to fund the wedding expenses.
The current bank interests rates are around 0.8-1%. Step up accounts have higher rates but do be aware of the mechanics behind the step up interest rates.
I would like to touch on the budgeting part.
It is really crucial that you cater an extra 10% or 20%, and aim to spend within or even under budget. The bright side of having a wedding during this times is that your honeymoon will cost less, so you can use some of that to channel to your house or reno.
It would be good if you can enlist the help of your friends who are financial planners too, to help you and your partner plan your finances properly.
It is encouraging that you are taking ownership of your finances and reading up more on it.
Keep it up, and wish you a blessed marriage!
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Do note that currently the interest rates have been revised due to the pandemic.
The multiplier account only requires you to deposit your salary into any dbs account under your name and credit card spend. But the interest only applies to the amount in your multiplier account.
What most couples do, is that they credit their salary into a joint account and transfer the money into their multiplier account for the interest.
Seedly had an interview with a couple that was doing exactly this but I can't remember who or where.
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Standard Chartered JumpStart Account
Up to 1% p.a.
MIN. INITIAL DEPOSIT
MIN. AVG DAILY BALANCE
DBS/POSB Multiplier Account
OCBC FRANK Account