Hey Guys! I would like to ask which combination of credit card & savings account is the best for my situation?

Question

I'm a graduate student receiving a stipend, which does not qualify as salary, most savings accounts does not benefit me.

Currently, I do have a UOB one account and credit card (I have worked before), DBS Live Fresh credit card, StandardChartered Jumpstart savings account.

After maxing Jumpstart account (Maxing 20K), should I get the CIMB Fastsaver account to reap the 1% interest rate or try to spend $600 a month to get the 1.5% interest with UOB one account?

Pang Zhe Liang · Accepted Answer

If you have maxed out your Standard Chartered JumpStart account, then the natural question will be,

_"Do you really need so much liquidity in the short run?"_

In order to do this, 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/](https://www.blog.pzl.sg/understanding-your-personal-cash-flow/)

Thereafter, calculate how much you need today. Thereafter, make the rest of it work harder for you. At the end of the day, there is no point in earning interest that is barely sufficient to beat inflation for the money that you do not need today.

That being said, if you need short term liquidity, then it is obvious to go for CIMB FastSaver. This is because it earns interest for you without money leaking from your account. On the other hand, UOB One requires you to spend money that you won't otherwise spend. As a result, you have a negative net cash flow with it - which is totally unnecessary.

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Andy Sim · Answer

Hi Anon, yes do max out your Jumpstart first and not leave the money on the table. It's basically free money if you can hit 20K max.

I would then open the CIMB Fastsaver and build my savings there to earn the 1%. Do not spend more than what you can afford as it seems $600 is difficult to hit for you.

Trying using the Seedly calculator to input and see if other accounts might suit you better.

[https://seedly.sg/tools/savings-account-calculator](https://seedly.sg/tools/savings-account-calculator)

Geraldo L. · Answer

For your situation I would go with the CIMB Fastsaver account, instead of spending $600 to meet the higher interest on UOB One - dollar not spent is a dollar saved :)