I'm looking to have a higher interest account to increase my savings. Which bank savings account should I go for? - Seedly

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Asked by Alcander Seow

Asked on 11 Jun 2019

I'm looking to have a higher interest account to increase my savings. Which bank savings account should I go for?

I'm an 18-year-old male student with 2 bank accounts; OCBC Frank account and POSB eEverydays Savings account. I'm looking to have a higher interest account to increase my savings. Currently, my OCBC Frank card is my main spending account, while my POSB account has a couple of hundred of dollars inside and is my saving account (put money in, don't touch). Currently looking at these few plans/accounts; OCBC -Bonus+ Savings Account, Monthly Savings Account POSB -unsure Investment accounts too

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Randy Chai
Randy Chai

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Level 4. Prodigy
Updated on 20 Jul 2019

Hi Alcander!

Taking the assumption that you're a student and thus, would not be able to qualify for Salary Crediting, Credit Card Spend, Home/Car Loans and/or Investments. Here are the top 3 Saving Accounts you can go for with the highest interest rates.

P.S. Calculated/Researched based on this formula (Base Interest + Bill/Giro Payment + Other Bonuses)

1) Maybank's Save Up Programme

Base interest rate: 0.3125%

  • one Maybank product or service, Giro Payment Bonus (of at least $300): 0.3%

Total attainable interest: 0.6125%

Source: Maybank

2) Bank of China's SmartSaver

Base interest rate: 0.25%

  • Payment Bonus (3 bill payments of at least S$30 each): 0.35%

Total attainable interest: 0.6%

Source: Bank of China

3) CIMB FastSaver Account

  • Base interest (First $50, 000): 1%

Base interest (Next $25, 000): 1.5%

Base interest (Above $75, 000): 0.60%

Source: CIMB

Based on our assumptions and interest rate formula, CIMB's FastSaver Account will provide you with the highest interest rate at 1% which will be ideal for you at this juncture.

However, don't just hear this from me, do check out what our community have to say by reading their reviews: https://seedly.sg/reviews/savings-accounts

Also, for a more detailed breakdown for all available savings accounts, do check out our Best Savings Account Cheat Sheet here: https://blog.seedly.sg/best-savings-accounts-singapore/

Last but not least, do note that you can use Seedly's Savings Account Calculator to find out which service provider is best for you: https://seedly.sg/tools/savings-account-calculator

I hope this will help!

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Tan Wei Ming
Tan Wei Ming

()

Level 5. Genius
Updated on 15 Jun 2019

Hi, I recommend you to sign up for CIMB FastSaver account. CIMB FastSaver is a great no frills savings account in the market currently. The interest rate for this account is 1% and interest is calculated daily so long you have at least $1000 each day. There is no fall below fee so you can have $0 in the bank account and not kena any bankdraft or whatsoever.

Since there is limited ATMs for CIMB, I always do a FAST transfer from CIMB to OCBC for withdrawals or vice versa for deposits.

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Alcander Seow
Alcander Seow

15 Jun 2019

Do I need to buy insurance to get the guarantee from SDIC?
Tan Wei Ming
Tan Wei Ming

15 Jun 2019

It is not a local bank. However, it is one of the members of SDIC. You do not need to get any insurance.
Fan ZD
Fan ZD

()

Level 3. Wonderkid
Updated on 15 Jun 2019

Seeing as you would have no regular income as a student, I would go for CIMB FastSaver - no min. Fall below fee, 1 percent interest rate with no criteria to fulfill. Park money in the fixed deposit for up to 1.9 percent interest currently. Note that this account is online only (no atm withdrawal).

Alternatively, if you prefer to invest your savings, you can consider banks where you can access certain investment features. Example being OCBC with their Blue Chip investment plan.

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Fan ZD
Fan ZD

12 Jun 2019

Quite safe. Covered by SDIC up to 75k too. Anyways, the first question you should ask yourself is, what is your priority at your age? Then look at the savings accounts and banks to go with
Alcander Seow
Alcander Seow

15 Jun 2019

Currently, just looking for a way/s to increase my assets with little to no risk. But at max prep to open only 3 bank account. Priority right now, is to saving $$ and invesy slightly ($50 - $100).
Jia Jia
Jia Jia

()

Level 4. Prodigy
Updated on 16 Jun 2019

Hiya, I opened a CIMB FastSaver account at your age for the no frills 1% interest rate as the others have mentioned. It is safe, easy to apply for online (on desktop) but their mobile app is a little bit slow and less user friendly than POSB or OCBC. I still use Frank as my main spending account and closed my POSB.

When comparing CIMB to OCBC+, I still prefer CIMB because there is no withdrawal penalty i.e. the interest rate stays the same. This is unlike OCBC+ which encourages you not to withdraw at all. I would rather place the $$ into Singapore Savings Bond or a 3-6 month Fixed Deposit since interest rates for these are above 1.45%. Also, it may be hard to place a min sum of $500 of savings into that account monthly to hit the higher interest rate, unless you have a job or tuition gig that pays really well. Just my two cents.

Btw, I'm not sure when you are entering NS, but when you do, POSB Save As You Serve interest rates are better than CIMB during that period if you credit your pay into the account. https://www.posb.com.sg/personal/deposits/savings-accounts/says

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Jia Jia
Jia Jia

16 Jun 2019

You can't withdraw fixed deposits during the period which you have placed it with them and you will get a fixed interest rate of 1.5-2.0% (based on current schemes). You can only place fresh funds with the bank for fixed deposits. Most banks require a min of 10/20k placement for the fixed deposits so only consider this option if you have sufficient savings. If not, choose the CIMB 1% frills-free option. Note, only get a FD if you think you won't require the sum during the period of time and keep emergency funds too!
Jia Jia
Jia Jia

16 Jun 2019

For >$10k, I think the CIMB Fixed Deposit is pretty decent for 3/6 months. https://www.cimbbank.com.sg/en/personal/news-and-promotions/promotions/accounts/cimb-fast-fixed-deposit-promo.html