Asked by Anonymous
Updated on 18 Apr 2019
I have 50,000 spare cash, which bank account in Singapore offers best interest and liquidity? SDIC says to offer safe guarding for our deposit. Anyone have experiences before in this SDIC?
Off-hand I would say that SDIC has not had to pay out since it's inception as I do not know of any incidences where banks/insurers have failed to payout to their clients in Singapore due to default.
With effect from 1 April 2019, the limit has increased to $75,000
I've done a full write up on elastiq plan, comparing it with SSB and Singlife Endowment for 3years. These plans are for liquidity. https://www.theastuteparent.com/2019/01/elastiq-by-etiqa/
you can consider ELASTIQ :) flexibility of funds after 90 days at guaranteed 2.02% pa for first 3 years. https://tiq.com.sg/product/universal-life-insurance-elastiq/
or of course, SSB.
UOB One Account gives high interest rates (2.43%) only if you can set aside $50,000 as savings deposit and able to spend at least $500 on a participating UOB credit card.
I would recommend Citibank MaxiGain if that 50k will remain untouched. The base rate starts at 80% of sibor and increases to 2%.
Let me know if you need an RM to meet you at the place of your convenience to set up the account.
You may PM me at www.facebook.com/brandan.chen should you like me to intro an RM
I would recommend CIMB FastSaver which offers 1% interest per annum for up to $50,000. It is an online savings account and your deposit is insured (SDIC) up to $50,000. It offers liquidity as well since you can easily make a FAST transfer to another bank account via it's iBanking platform, CIMB Clicks.
Invest that money in REITs or ETFs (Straits Times Index or S&P500) and easily get about 7-9% (safer, passive option). Also, if you're capable of evaluating good & cheap companies, Stocks can cross over 10%.
Why put that money in a fixed deposit for the bank to give you only 2% when they are using your frozen amount to invest for waaaay higher returns?