Asking this because of course it is easier to segregate finances by putting your savings and expenses into different account so that you can keep track better. But let's say if I can get 2% with DBS multiplier, doesnt it make more sense to put all my money there so that I can get the best returns?
I top up my savings accounts to the extent to which I can enjoy the higher interest rates. It's important to see what the cap is for the different savings accounts.
Take for example the Citi Maxigain savings account. I currently have my Citi Maxigain savings account topped up to 100k (because beyond 150k, you don't avail the step-up interest of 2%). Currently that gives me the best interest rates with no hassle of minimum spending etc.
For the rest, I use Standard Chartered Bonus Savers account (but am not liking the minimum card spend), and the rest I have in CIMB for all the rest of it.
Yup, I put all my money in my DBS multiplier account like you said! I have a spreadsheet which tracks how much emergency funds and savings i have, so i don't accidentally spend anything.
Yes but it's best to split into :
1) Expenses / Petty cash accounts - For monthly expenses - If you use DBS / POSB then use their normal savings/current account.
2) Savings / Investment acounts - Use DBS Multiplier to get max interest and all your other $ should be here!
The benefits is also fast and easy transfer and easier to keep track all within 1 app and you can sync with Seedly app easily to track expenses by category.
#1 can also be any other banks.
I'd say split if you can, for instance, into a main account, emergency funds and investibles, as there is usally a cap on the max amount eg 50k, 70k that can earn the high interest rates.
It really depends on you. Personally, I worry about accidentally/intentionally touching the emergency funds so i'll have a current and savings account.