I just turned 18 and opened my Standard Chartered JumpStart account. Should I move all of my childhood savings from POSB into the JumpStart account? - Seedly
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Standard Chartered JumpStart Account

Anonymous

Asked on 19 Jun 2020

I just turned 18 and opened my Standard Chartered JumpStart account. Should I move all of my childhood savings from POSB into the JumpStart account?

Is there any reason for me to leave some of my savings in my childhood POSB savings account?

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Lim Qin Da
Lim Qin Da
Level 6. Master
Updated on 19 Jun 2020

Hey Anon!

Great that you opened your Jumpstart account at such an early age! You can consider moving up to $20k into the SCB Jumpstart account, since the new interest rates of 1% would apply to the first $20k. Other high interest savings accounts that you could consider are Singlife (2.5% for first $10k) and Stashaway Simple (1.9%).

If you currently only have these 2 accounts and are not planning to open anymore savings accounts, you could use Jumpstart as your emergency funds/ main savings account for interests, and leave some money in POSB for expenditure. With more POSB/DBS atms around it would be much easier for you to withdraw cash too.

Hope this helps!​​​

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PillowCase
Level 5. Genius
Answered on 28 Jun 2020

Hey there.

If you are considering high-interest savings accounts, CIMB has recently announced today that they will be revising their interest rate for FastSaver. You might want to take a look here.

Other alternative choices that do not require spending/minimum sum include:

Singlife Account (2.5% p.a, capaital guaranteed, interest non guaranteed)

FSM Auto-Sweep Account (1.05%p.a, interest rates may be revised)

Stashaway Simple (1.9%, capital non guaranteed, interest non guaranteed)

SCB JumpStart (1%p.a, only for aged 18-26)

Crypto Earn (Depending on currency, as high as 16%p.a (CRO) without any prior staking. However, do take note of the volatility of cryptocurrencies. For higher interest rates, a fixed duration of 90 days is imposed before withdrawal can be made. Intetest is paid out every 7 days)

Crypto Exchange (20%p.a for CRO currency. Similar to Crypto Earn, just that fixed duration is set at 180 days. Interest is paid out daily)

Vivid Account (1.05% p.a for first 10k, 1.30% for 10k-20k)

Tiq 3 Year Endowment Plan (2.10%p.a, guaranteed)

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Hayley
Level 4. Prodigy
Updated on 26 Jun 2020

Hello, anon, lucky for you, you now have various student card options to sign up for, that includes frank debit, standard chart jumpstart, dbs live fresh etc.

of all, i believe jumpstart is a better account for savings and to earn interest. they have lowered it fom 2% p.a to 1% p.a, but it is still pretty good for a student to be able to get.

as for your POSB savings account, i suggest to still maintain it. for myself, i have jumpstart, posb savings and ocbc frank!

reason to keep

  1. DBS/POSB atm withdrawals are super convenient as its widely located

this is my main reason to keep my card, because i can easily transfer funds on mobile to my dbs account and withdraw at nearest atm.

  1. good to have 2 or more accounts; this account can be used to track your expenses. you can consider jumpstart as a savings account, then transfer a budget expenses amount to posb acc every month!

  2. to maximise your posb account, i think you can search online for debit cards types and find one that suit your needs better! eg passion card, everyday card

you can keep your posb account number, just get a new card that can help you to earn cashback/points for your expenses on this account :)

only cons

there is a minimum bal. of $500 to prevent penalty of $2 per month

interest rate is super low, it is 0.05% p.a throughout, and is only credited at the end of year 31st dec.​​​

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Generally, I advise my clients to have two bank accounts - one for salary, and the other for expenditure. I have explained why in my post on how to create a monthly budget.

How I do My Budget:

How to create a Monthly Budget

For your case, Standard Chartered JumpStart is likely to yield a higher rate of interest as compared to your POSB account. Therefore, I will use it as a wealth accumulation account. Thus, POSB savings account won't have much use now.

On the other hand, if you prefer a disciplined way of creating a budget for your cash flow (like what I do), then you may use your POSB account for that purpose.

I share quality content on estate planning and financial planning here.​​​

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