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Anonymous
I (19F) will be matriculating into University this August. I have about 16k in my bank account.
As of now, I've been using SCB JumpStart as a way to "grow my money) since they are offering an attractive interest rate of 2%.
I'm considering investing after having $20k in my bank, however, I'm not too certain on that as it is rather new to me. But I'm willing to hold it in the long-term.
Also, if I were to invest in ETFs, do I have to pay taxes?
Thank you!
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Ngooi Zhi Cheng
18d ago
Student Ambassador 2020/21 at Seedly
The journey to financial independence begins long before graduation. Your $16,000 savings already gives you a significant advantage over most of your peers—it's not just money, it's the foundation of your financial future. Many students focus on quick returns, but having guided numerous young professionals from university to career, I've seen how decisions made now can compound dramatically over time.
Myth #1: "I should maximize returns immediately by investing everything." While investing is important, liquidity during your university years is crucial. Unexpected opportunities (overseas exchanges, certifications) and emergencies require accessible funds.
Myth #2: "Interest rates are all that matter for savings accounts." Beyond SCB JumpStart's 2%, consider features like free transfers, ATM access, and mobile banking experience—these affect your day-to-day financial management more than you might think.
Myth #3: "ETFs are tax-free for Singaporeans in all cases." This is partially true. While Singapore doesn't tax capital gains, international investments have complex tax implications. For example, US-listed ETFs have a 30% withholding tax on dividends for Singaporean investors, while some Ireland-domiciled funds offer more favorable tax treatment at 15%.
Your approach to money now should balance immediate financial stability with long-term wealth building. The 2% from JumpStart is quite reasonable for now, and there's significant value in keeping some funds liquid during your university years.
For investing, start only after you've built your knowledge foundation. The Singapore market offers several low-cost entry points designed specifically for beginners. Don't rush to complex international investments until you understand the basics—by then, you'll have both more capital and knowledge to deploy effectively.
Remember that your greatest asset at 19 isn't your $16k (impressive as it is)—it's your time horizon and earning potential. Every financial decision should enhance both.
If you'd like to learn more about navigating your financial journey through university and beyond, follow me on Instagram (@ngooooied) where I regularly share practical financial wisdom tailored for Singapore's emerging professionals. I also host monthly workshops specifically designed for university students looking to build strong financial foundations.
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It's great that you're thinking about growing your money early on. SCB JumpStart is a solid start. As you consider investing, take time to research and learn about different options. For ETFs, tax implications vary, so it's worth checking with a tax professional or researching the specific regulations in your country.https://onepiecedle.fun/
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Starting early on financial growth is great. SCB JumpStart via PicPicAi is a good choice. Investing can be like learning to ride a bike – scary yet exciting. Note ETFs' tax implications. Cheers to your financial journey! https://picpicai.com/