facebookI am a low risk investor and usually put my funds in FD.. FD rate is now very low and i am stuck as how to maximise my funds or use it to get better returns. Please advise.? - Seedly
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Angela Neo

Asked on 01 Sep 2020

I am a low risk investor and usually put my funds in FD.. FD rate is now very low and i am stuck as how to maximise my funds or use it to get better returns. Please advise.?

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Answers (7)

Peter Oh

Peter Oh

Level 3. Wonderkid

Updated on 07 Sep 2020

Hi Angela, the answer will depend on what is the amount of deposits you are intending to roll and how many accounts you are willing to open to optimize.

In my view, for deposits <$15k and you only want to choose one account, the Singlife Account is preferred because it offers the highest blended interest rate at 2.5% for first $10k, and 1% for next $90k. This means the blended interest rate will be over 2% for deposit amounts of less than $15k. In addition, you are able to transfer funds to/fro your bank account via the Singlife app at no cost and you can also use the free Singlife Visa Debit Card for any ad-hoc expenditure.

If you have more savings, I would next opt for ELASTIQ. The 1.8% p.a interest rate is guaranteed over the first 3 years and will result in higher returns compared to what is being offered by other options like Singtel Dash EasyEarn or ETIQA GIGANTIQ. The maximum policy size of $50k also makes it more flexible compared to Singtel Dash EasyEarn.

You can view the below article, which provides more details on the above-mentioned and also compiles the updated yields/interest rates across Cash Management Accounts by brokers/Robo-Advisors, Insurance Savings Accounts and Short-term Endowments.

https://theinvestquest.com/best-savings-and-fixed-deposit-alternatives-in-sg/​​​

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Sarah

07 Sep 2020

Thanks, the article was helpful

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about

Post

Hi Angela,

You can consider money market funds, which at least has better liquidity compared to FDs.

If you are willing to take on more risk, short duration investment grade bond funds can be considered, due to their relative safety and lower volatility compared to equities. I highly recommend not to start any equity investing if you are really green and not prepared to cope with the swings of the market, as it might scare you and affect you emotionally. When emotions run high, it is hard to stay calm and make logical decisions.

Beyond that, you will really need to sit down and speak with an advisor to understand the other options available to you. "Better returns" is relative, a bond fund would already likely have better returns than an FD, and the same goes for equities, but what kind of risk are you taking on just for those returns?

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Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about

Post

Hey there!

You may want to opt for other options apart from fixed deposit. In a low interest rate e...

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