Asked by Anonymous
Asked on 19 Jan 2019
High interest savings accounts generally reward for spending on credit cards. How do you save money in another account and earn high interest rates, yet not touching the money?
Yes, I do! 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 like you mentioned), and the rest I have in CIMB for all the rest of it.
Personally, I placed a portion of my money in another saving accounts which reward me with higher interest if I do not withdraw it as I generally don't spend much.
I think it differs from person to person on how should they allocate their money in different accounts depending on their income and average monthly expenses
You can pay the credit card bills with the smaller account. Or if you have the willpower, one account will work just fine.