I am a 21 year old with 25k savings. Where should I put them for interests?

Hi, I would like to chip in some of my opinion.

I would suggest opening a Singlife account which gives 2.5% per annum for the first $10k. Capital is guaranteed but returns aren't. Singlife's intention is to offer 2.5% pa for the first year. I don't think there will be any changes in the interest rate until our policy ends.

Fixed Deposits rates are not affected by whether we are entering phase 2. Low interest rate environment is gonna stay for quite long because the Fed is maintaining 0-0.25% interest rate for the next two years.

I would invest the remaining funds. However, this depends on your risk appetite. For beginners, I wouldn't really recommending picking your own stocks because it requires a lot of time to learn and research. I have a friend whom I recommended looking into passive investing through ETFs be it ETF RSP or robo advisors. In the meanwhile, while you engage in ETF RSP or robo advisors, you can start learning how to analyse the companies by reading books or blog articles that analyse these companies.

Hey Anon, well done on your savings. I'd suggest going for both the Singlife Account (10k) at 2.5% p.a and Etiqa Elastiq (15k) at 1.8% p.a. Both of these offer a higher interest rate than SCB Jumpstart and DBS FD. In my opinion, doesn't make sense to put in a FD, you lose the flexibility and the returns are not attractive either.

https://www.aaronleow.com/wealth-projection-cal...

You can use the above calculator to project your wealth.

If you need the money for short term events; i.e wedding, home and renovation costs, you will be better off holding them in short term guaranteed deposits.

If not, set aside 6 months of your expenses as emergency funds first, and think about the amount of risk you are willing to take to invest the excess amount.

I wouldn't bother with CPF as it will be automated once you start working anyway. It just doesn't make sense to give up liquidity at your age when there are better avenues attributing to your long time frame.

Avoid timing the market. Spend more time protecting your capital first and foremost, and focus on growing your income. That will be your highest return on time.

TLDR: there is no substitute for hard work.

Why would banks increase interest rates? US Fed has announce flat interest rates til 2022. we will be following suit as per usual. Also, now is the absolute worst time to invest in stocks/property. Considering that earnings have plummetted and stock prices have rallied 50%. Makes no fundamental sense. The bubble is on the verge of popping once stimulus checks stop being given out.

In terms of best returns for now, CPF top ups give you the best returns but the money gets stuck. You can however follow the ever popular 1M45 or 4M65 couple and how they retire rich via CPF top ups. Search that up.