facebookWhy do people invest in SSB over putting their money in high-interest savings accounts or fixed deposits? - Seedly

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Anonymous

05 Mar 2020

General Investing

Why do people invest in SSB over putting their money in high-interest savings accounts or fixed deposits?

Is it a wise decision to put your money in SSB over a high-yield savings account? What about a fixed deposit? Which is a low-risk investment that would be good?

Discussion (2)

What are your thoughts?

Hariz Arthur Maloy

Hariz Arthur Maloy

05 Mar 2020

Level 15·Independent Financial Advisor at Promiseland Independent

The highest interest account without any hoops would be CIMB fast saver and that doens't beat SSB yields. The rest require either a salary credit, some Giro, or some credit card or insurance and investment spend with the bank.

So for purely no frills, SSB is pretty good.

The comparison with FD would be liquidity as SSB can be redeemed anytime and interest is pro-rated while FDs may have penalty or you lose the interest, and that SSBs can be held for 10 years, locking in returns while the longest FD is only 3 or 5 years at max.

Normally high yield saving acc got multiple hoops to jump but SSB don't have any T&C.
Fixed deposit u need to lock in certain period, if u take out before maturity date, there will b no interest whereas SSB interest will b paid proportionally.

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