facebookWith all the major Singaporean banks announcing huge cuts to their interests rates, what should be the best alternative to place our savings in until the interest rates get back to normal? - Seedly

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          Anonymous

          02 Jul 2020

          Saving Hacks

          With all the major Singaporean banks announcing huge cuts to their interests rates, what should be the best alternative to place our savings in until the interest rates get back to normal?

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              Discussion (1)

              What are your thoughts?

              It depends on the purpose of the savings in the bank.

              For example, if the money is for daily spending, then it would be more convenient to use a local bank account due to the wider ATM network and PayNow compatability. In some cases where if you can hit the transaction requirements, you may be eligible for bonus interest rate on the existing rate (multiplier account).

              If the money is meant as emergency funds, then it would be best not to put into any account that requires lock-in or have more complex withdrawal procedure. Savings insurance account can be considered. This includes Singlife account.

              For spare cash, you can consider putting them in short term endowment plans or into money market funds (similar risk profile). For the former, Elastiq offers 1.8% for first three years and 90 days lock in and Dash Easyearn has 2% return for first year. Money market funds wise, there's Endowus at 2.2% and StashAway 1.9%. Do check out their terms and conditions first before applying.

              If you feel you can up a notch and invest in risker securities, you can consider index funds and robosadvisors. You can take a look at the articles on the various personal finance sites and do a comparison on them and learn about how they work. From there, you can pick which is more suitable for your financial needs.

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