What is the best way for a 20-year old to start saving and investing?

I would recommend investing 50% in a market portfolio like S&P500 ETF as it historically yields 10% return and has a general upward trend. Another 50% can be other individual stocks that you like and see a potential of 10% return. Diversification is always important. There is no reward for bearing unnecessary risks. 

However, you will need time for researching first. Acquiring the financial knowledge is more important than getting the assets asap. While building up your knowledge, you can think about investing in low-risk savings plans (e.g. from banks, SSB) first to gain some extra interest, instead of keeping cash in the bank.​​​

Since you're going to NS soon, I believe that you're a student and thus, have little to no monthly income. As such, there isn't a point in opening a DBS Multiplier account since you will not fulfill the criteria to earn the additional interests. I'm currently serving National Service as well so here's my suggestion and what I did:

1) Close your POSBkids account and open a CIMB Fastsaver account

I entered NS in May this year and recently, I closed my POSBkids account and transferred all of my money inside that account into my newly opened CIMB Fastsaver which gives me a much higher interest rate of 1% as compared to 0.05%. This might seem like a small difference but a little goes a long way! E.g. I have $45k in my POSBkids account. So the interest that I would earn in a year is only $22.50. But if I were to put it in CIMB Fastsaver, I would be able to earn $450 of interest in a year. That's a difference of $427.50 which I feel is quite a huge difference especially in the long run.

Note: Keep the balance in CIMB Fastsaver below $50k since it's only SDIC insured up to $50k should anything happen to the bank. Alongside with this, I also opened a Fixed Deposit account last week and put in a significant amount inside it to earn 1.84% interest for locking it in for 12 months as I do not foresee that I'll need this sum of money anytime soon.

2) Open a POSB Save As You Serve (SAYE) account

When you enlist into NS, open a POSB SAYE account online and deposit some of your monthly salary into that account as it gives you additional 2% interest after you ORD. This is assuming that you do not make any withdrawals during the 2 years. If you do, you'll forfeit the additiona 2% interest that you could've earned. This makes you save up for your future funds or education. You can then use your remaining salary to go out and enjoy with your friends/family. I'm currently contributing $400 per month into my POSB SAYE account.

3) Do not close your POSB eMySavings

Take it as your expenses account where you use it for paying for your transport, meals with friends etc. If you need additional funds, you can easily transfer it from your CIMB Fastsaver account to your POSB account instantly via FAST and it's free of charge. But stay disciplied and save up whenever possible since you do not draw much during NS. I'm using DBS eRemix Savings Plus for my expenses account since I can easily withdraw cash and pay with VISA or NETS. I also keep the amount in this account low since it only earns 0.05% interest.

4) Investments

You can easily invest in the STI ETF (Nikko AM) by setting up a Regular Savings Plan with POSB. All you need is just $100 a month to begin investing. Alternatively, you can choose to invest in US ETFs through robo-advisors such as Stashaway or Smartly. I'm currently contributing $100 per monthly into Stashaway as I want to diversify my investments out of the Singapore market and due to better historic performance. With that said, historical performance isn't a measure/indiciation of future performance. Alternatively, if you have a higher risk appetite, you can consider venturing into P2P lending and stocks. I'm planning to try P2P lending soon as it offers attractive returns (with higher risks of course). I have a friend in NS who invests in US stocks and made quite a profit as well but of course, you can easily lose money as well. Please only invest with money that you can afford to lose.

In my case, I'm currently using DBS Remix eSavings Plus (Expenses), POSB SAYE ($400 monthly) and CIMB FastSaver (Emergency/Life savings).

All the best in your saving/investment/NS journey!

Save As You Serve, by POSB would be your best choice for a savings account during your NS years due to the higher interest offered. No need to close your existing account with POSB; you can repurpose it for other uses.

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Before you start investing, look to improve your investment knowledge. Get some material to read in camp or before you enlist. Millionnaire teacher may be a good place to start. Learn to earn by Peter Lynch as well (though this is more of a US context). Look to protect yourself via insurance coverage also. SAF group insurance policies will be a good starting point at your age. Also look into hospitalisation plans if your parents did not start you on one.

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For investing proper, you can look into investing via robo advisories, which gives access to global and US ETFs. Stashaway and Smartly will allow small amounts to start off with. Alternatively, a Monthly Investment Plan via Maybank KE may be a good choice as well. Will allow you to buy into the STI ETF or other stock counters for S$100 per counter per month.

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Good that you are investing early in life. Key is to stay focused, and be disciplined. Try to master one form of investment before moving to another. All the best in your NS and investment journeys.

Hi there!

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Good that at your age as a nsf you love to save, invest and learn ways to save and also bloom your money.

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During my time in ns, I opened up a POSB saye account and it really helps to discipline your saving skills or method as it auto deduct your amount you wish to save. This account I must say is a must to open!!

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Safra debit card would be good because the ammenities at safra for example if you life to swim is free! It’s just the few months they will deduct a portion of your pay up to $90 monthly but only for like a few months from what I recall. As I just ord this year July:)

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Currently, I have 3 accounts with DBS. It’s good for savings, expenses and an account to keep for your let say holiday or future planning in let say 2-4 years.

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You can do it!