Do you guys have a separate savings account or put all your money (expenses + savings) into the bank account that gives the most interest? - Seedly
 

Savings Account

Asked by Huang Yixuan

Asked on 06 Dec 2018

Do you guys have a separate savings account or put all your money (expenses + savings) into the bank account that gives the most interest?

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?

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Takingstock @
Takingstock @
Level 6. Master
Answered 3w ago

You are right that storing all the cash in the highest interest account will generate the best returns (between one and multiple accounts), however you don't get the best returns from just holding cash in a bank account... You can invest for better returns.

Some people hold multiple bank accounts so that each is a reserve for a different purpose, I know a colleague who holds one bank account each to handle the finances for each rental property she holds. The account balance simply becomes a quick calculation of her property returns.

Personally I hold just two, a high interest bearing one, and a separate one for spending (allowance system). The interest earned from my spending acct isn't much, but for me the benefits are

  • the balance tells me how much is there left for spending

  • there are a lot of controls built into my main / high interest account, it gives me comfort that me or scammers can't easily take money out of it, without needing to use the banking token and key in quite a few of otp passwords.

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Junus Eu
Junus Eu
Top Contributor

Top Contributor (Jan)

Level 9. God of Wisdom
Answered on 18 May 2019

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.

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Yong Kah Hwee
Yong Kah Hwee
Level 8. Wizard
Answered on 06 Dec 2018

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.

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Frodo
Level 2. Rookie
Answered 3w ago

I am using Jumpstart for now. Only problem is the lack of ATMs.

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Lau Joey
Lau Joey
Level 2. Rookie
Answered 3w ago

Jumpstart account is pretty good for 18-26 years old

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Lau Junle
Lau Junle
Level 2. Rookie
Answered 3w ago

Easy. Use Standard Charted Jumpstart account

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HC Tang
HC Tang, Financial Enthusiast, Budgeting at The Society
Level 8. Wizard
Answered on 17 Jan 2019

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.

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Npm Adele
Npm Adele
Level 4. Prodigy
Answered on 17 Jan 2019

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.

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Lok Yang Teng
Lok Yang Teng
Level 8. Wizard
Answered on 06 Dec 2018

It really depends on you. Personally, I worry about accidentally/intentionally touching the emergency funds so i'll have a current and savings account.

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