For bank accounts with no salary crediting, which one would give the best interest for e.g. 30k funds? Or would it be better to put it in a FD or SSB as the funds are not ended urgently? - Seedly
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Singapore Saving Bonds (SSB)

Vicki Chng

Asked on 03 Dec 2019

For bank accounts with no salary crediting, which one would give the best interest for e.g. 30k funds? Or would it be better to put it in a FD or SSB as the funds are not ended urgently?

Give the variables above, what would be the best course of action that i can take that would result in the best results?

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Hi Vicki,

CIMB Fastsaver gives 1% with absolutely no criteria. I'd put my monies there first.

I would not look at FD as I totally lose my interest should I terminate the FD prior to maturity because I need my monies.

For SSB, I would still get accrued interest, but liquidity is not immediate as it takes up to a month to get monies back, and I need to apply as well, and might not get full allocation.

So the best course of action would be to split up amongst all 3. So say, $10K in CIMB, $10K in SSB and $10K in FD. And if I really needed the funds, I'll take it out in this order: CIMB/SSB/FD

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šŸ‘ 2

If you can fulfill some hurdles, UOB One would be a good choice.

If not, FDs and SSB are fine as well.

If you don't need liquidity and have at least a 3yr horizon, single premium endowments are also giving a compounded 2.32% p.a for 3 years.

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Cedric Jamie Soh
Cedric Jamie Soh, Director at Seniorcare.com.sg
Level 9. God of Wisdom
Answered on 22 Dec 2019

For bank account with no salary crediting,

If you are below age 26, gof or SCB jumpstart as you can get 2%

CIMB Faster Saver at 1% is next good bank account

Citi Maxigain is good too.

UOB One has higher interest but there are other criteria such as minimum credit spend before the next tier. (So is OCBC 360 account, even without salary credit, there are 2 more tiers)

Or you can talk to foreign banks (because local bank's fixed deposit rates suck) and ask for longer term fixed deposits.

I suggest singapore saving bonds also if you are risk adverse.

You can also read up on this higher interests than fixed deposits scheme.

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šŸ‘ 1
Bjorn Ng
Bjorn Ng
Level 9. God of Wisdom
Answered on 22 Dec 2019

Do consider UOB One. Salary credit is not a main criteria. Instead, spend min. $500/month on your UOB cc (take a look at UOB x Grab promo), and create 3 GIROs from the account.

I think SSB interest rates right now is not worth to put it in, but the good thing about it is the liquidity where if you need the money suddenly, you can withdraw it out from SSB. FD has this disadvantage so only go for it if you have sufficient liquidity buffer.

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Junus Eu
Junus Eu
Level 9. God of Wisdom
Answered on 03 Dec 2019

Citibank Maxigain and CIMB for no salary crediting.

Personally I have liked Citibank Maxigain for up to $150k, and post which I tend channel it to CIMB for the rest. THAT SAID they have revised their fine print such that there will be a massive drop in interest rate from 2 Dec 2019 onwards, potentially from the current 2.5% to 1.5%. I will be looking out for other places to park my cash!

What I do is to max out Citibank Maxigain, then put the rest in CIMB.

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Eveline Lau
Eveline Lau
Level 6. Master
Answered on 23 Dec 2019

UOB One, if you can fulfill min. $500 spending + 3 GIRO. Followed by FDs and SSB, followed by CIMB Fastsaver. If you're less than 26 years old, you may also want to consider SCB Jumpstart.

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šŸ‘ 0
Yanisa Koh
Yanisa Koh
Level 6. Master
Answered on 23 Dec 2019

FDs and SSBs are fine if you are sure that the funds will not be needed urgently.

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šŸ‘ 0

Firstly, we need to have a complete understanding on our cashflow. Through this process, we will understand our earning ability and spending habit. Here is a guide to help you: https://www.blog.pzl.sg/understanding-your-personal-cash-flow/

From there, understand when you will require this fund of $30k. If it is not required, then put it into tools that allow you to grow it for the long-term, e.g. retirement.

Personally, I won't put my money into Singapore Savings Bonds as its rate doesn't even meet the inflation rate. Accordingly, there is little value to it.

If you require the funds within a few years, then the best channel is probably fixed-deposit.

If you need the liquidity, the only place available will be the bank. You may consider UOB One if you have bills that can be parked under GIRO or to spend $500 monthly on their credit card. This way, you unlock the higher tiered interest.

Here is everything about me and what I do best.

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Hwee Kian
Hwee Kian
Level 7. Grand Master
Answered on 04 Dec 2019

UOB One would suit you the best, followed by SCB Jumpstart although the latter only earns 2% for the first 20k.

As Dawn mentioned, UOB One for 3 Giro + $500 credit card spend would give you the bonus interest.

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šŸ‘ 0
Dawn Fiona
Dawn Fiona
Level 7. Grand Master
Answered on 03 Dec 2019

I'm using UOB One for 3 GIRO + credit card spend to meet the bonus interest, without any salary crediting :)

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Isabel Wong
Isabel Wong
Level 6. Master
Answered on 03 Dec 2019

For bank accounts with no salary crediting:

  • UOB One is actually doable but you need to manage it properly to make sure you hit the various criteria

  • SCB Jumpstart is the best with 2% with the only criteria that you need to be below 26 to open one

  • CIMB Fastsaver/Citi Maxigain is the next best

Alternative safe investments:

  • SSB - though the rates now are not too good

  • Short term endownments - most of the 3 year plans are offering 2.25%-2.5% guaranteed

Actually if you don't need the money for any main financial goal (to buy a house, education etc) - you should consider in income stocks or a good REITs which have much better yields. Especially if you have 10 years investment horizon.

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šŸ‘ 0
Choon Yuan Chan
Choon Yuan Chan
Level 9. God of Wisdom
Answered on 03 Dec 2019

Given the variables above, I would recommend putting in SSB. SSB also gives you the flexibility to withdraw anytime though you need to wait a few days before getting the money back.

A decent interest with flexibility to withdraw is a great combination

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