What are the simplest ways to beat inflation? Besides savings accounts, are there any other options I can consider? - Seedly
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Lim Qin Da

Asked on 07 Jul 2020

What are the simplest ways to beat inflation? Besides savings accounts, are there any other options I can consider?

Anyone has any tips? Which one will you recommend to a total newbie like me?

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Lim Qin Da

Lim Qin Da

Level 6. Master

Updated on 07 Aug 2020

Here are the top picks to park your savings/emergency funds without the need to credit your monthly salary! These options generated lots of commotion in the community in this low interest rate environment. Besides savings accounts, some are insurance savings plans or even cash management accounts.

Before you dive into the loooong comparison below, here’s a quick tip!

I would recommend putting your first $10k into Singlife Account for the 2.5% p.a. interest rate with no catch. Thereafter, you can consider the array of choices and decide based on the pros and cons. If you’re investing with robo-advisors or brokerages, you could also consider the cash management accounts that some of them offer!

Information accurate as of 7 Aug 2020.

SAVINGS ACCOUNTS (Read More)

CIMB FastSaver Account (Read More // Reviews)

Capital

  • Guaranteed

Interest rates

  • Not guaranteed

  • 0.50% p.a. for the first $50k

  • 0.80% p.a. for the next $25k

  • 1.50% p.a. for the next $25k

  • 0.40% p.a. for anything above $100k

Other benefits

  • No fall-below fees, minimum $1k to start earning interest

Standard Chartered Jumpstart Account (Read More // Reviews)

Capital

  • Guaranteed

Interest rates

  • Not guaranteed

  • 1.00% p.a. for the first $20k

  • 0.10% p.a. for anything above $20k

Other benefits

  • No fall-below fees

  • Debit Card: 1% cashback on eligible spending up to $60 a month

Restrictions

  • Age limit: 18 to 26 years old

INSURANCE SAVINGS PLANS

Dash EasyEarn (Read More)

Capital

  • Guaranteed

Interest rates

  • Guaranteed

  • 1.50% p.a. for $2k to $20k

  • Additional 0.50% p.a. for the first year

Other benefits

  • Life insurance coverage for death: 105% of account value

  • Dash account: Free withdrawal but money will be locked up there

  • No fall-below fees

Restrictions

  • Account value: Minimum $2k and maximum $20k

  • Top ups: Minimum $500 and increments of $500 per top-up

  • Withdrawals: Minimum $100 and increments of $100 per withdrawal

  • Withdrawal fees: $0.70 for each withdrawal to bank account

ELASTIQ (Reviews)

Capital

  • Guaranteed

Interest rates

  • Guaranteed for 3 years

  • 1.80% p.a. for $5k to $50k

Other benefits

  • Loyalty bonus: A non-guaranteed bonus of 0.3% of the average monthly account value for the past 36 policy months will be given every 3 years if no withdrawal has been made before

  • Death benefit: 106.8% of account value

Restrictions

  • Account value: Minimum $5k and maximum $50k

  • Lock-in period: Withdrawals can only be done after 90 calendar days

  • Top ups: Minimum $500 and increments of $500 per top-up

  • Withdrawals: Minimum $500 and increments of $500 per withdrawal

  • Fall-below fees: $5 charged at the end of each policy month if average daily account value for that policy month falls below $5k

Singlife Account (Read More // Reviews)

Capital

  • Guaranteed

Interest rates

  • Not guaranteed

  • 2.50% p.a. for the first $10k

  • 1.00% p.a. for the next $90k

  • 0% p.a. for anything above $100k

Other benefits

  • Life insurance coverage for death: Up to 105% of account value

  • Debit Card: No additional forex charges on overseas spend

  • Retrenchment coverage: Claim up to 3 months’ worth of average card spend

  • No fall-below fees, minimum $100 to start earning interest

CASH MANAGEMENT ACCOUNTS (Read More)

Endowus Cash Smart Core/Enhanced (Reviews)

Capital

  • Not guaranteed

Interest rates

  • Not guaranteed

  • 1.10% to 1.30% p.a. for Core (Safer)

  • 1.90% to 2.20% p.a. for Enhanced (Slightly riskier)

Restrictions

  • Fund-level fees: 0.18% for Core, 0.3% for Enhanced

  • Access fee: 0.05% per year

  • Account value: Minimum $10k

  • Withdrawal time: 3 to 4 business days

Others

  • Core: Low risk investment portfolio consisting of Fullerton SGD Cash Fund – Class A (50%), LionGlobal SGD Enhanced Liquidity (50%)

  • Enhanced: Slightly riskier investment portfolio consisting of LionGlobal SGD Enhanced Liquidity (50%), UOB AM United SGD Fund (50%)

  • Cash and SRS

FSMOne Auto-Sweep (Reviews)

Capital

  • Not guaranteed

Interest rates

  • Not guaranteed

  • 0.97% p.a.

Restrictions

  • Management fee: 0.05% per quarter

  • Account value: Minimum $50

  • Subsequent top-ups: Minimum $100

  • Withdrawals: Minimum $50

  • Withdrawal time: 1 business day

Others

  • Low risk investment portfolio consisting of LionGlobal SGD Enhanced Liquidity (45%), Fullerton SGD Cash Fund (40%), Cash Account (15%)

  • Cash only

MoneyOwl WiseSaver

Capital

  • Not guaranteed

Interest rates

  • Not guaranteed

  • 0.79% p.a.

Restrictions

  • Fund-level fees: 0.15%

  • Account value: Minimum $100 or $50 RSP monthly

  • Withdrawal time: 2 business days

Others

  • Low risk investment portfolio consisting of Fullerton SGD Cash Fund – Class A

  • Cash and SRS

Phillip SMART Park (Reviews)

Capital

  • Not guaranteed

Interest rates

  • Not guaranteed

  • 1.02% p.a. for SGD version

  • 1.32% p.a. for USD version

Restrictions

  • Management fee: 0.45% p.a.

  • Account value: Minimum $500

  • Subsequent top-ups: Minimum $100

  • Withdrawal time: 1 business day

Others

  • Investment into Phillip Money Market Fund – Class A consisting of Fixed Deposits (49.98%), Money Market Securities (26.60%), Cash and Accruals (23.42%)

  • Cash and SRS

StashAway Simple (Reviews)

Capital

  • Not guaranteed

Interest rates

  • Not guaranteed

  • 1.90% p.a.

Restrictions

  • Fund-level fees: 0.205%

  • Withdrawal time: 3 to 4 business days

Others

  • Low risk investment portfolio consisting of LionGlobal SGD Money Market Fund (50%), LionGlobal SGD Enhanced Liquidity Fund SGD Class I Acc (50%)

  • Cash and SRS

Still having difficulties or too much work for you? Try out the FREE Seedly Savings Account Calculator! After filling up some basic information, the calculator will tell you which savings account gives you the highest interest rate. Easy peasy!​​​

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4 more comments

Alex Chua
Alex Chua

15 Jul 2020

I guess u have answered it all. For non emergency funds, I would recommend robo advisors like syfe and/ or Stashaway. P2P lending (high risk, high rewards) : doing my deeds to help the smes
Shania Loh
Shania Loh

10 Aug 2020

Thank you for the comprehensive reply! A really good summary :)
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post
Shania Loh

Shania Loh

Level 6. Master

Answered on 10 Aug 2020

Hi!

I personally think to beat inflation, one should start investing. There are many ways to do so now but if you are a beginner, I suggest investing with a robo-advisor. There are plenty in the market to choose from such as StashAway, AutoWealth, EndowUS etc. If you are looking to start small, consider investing with StashAway since they do not have a minimum investment sum.

You may consider StashAway Simple, there cash management account that can earn you about 1.9% interest rates (not guaranteed) but it is definitely higher than what the bank is offering.

Other alternatives include Singlife (2.5% interest rates) or seeking advice from a finanical advisor and see if you are comfortable buying a savings plan.

0

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

Frankie Rappaport

Level 10. Unicorn

Answered on 09 Aug 2020

Investing for more than 10 years into MSCI World ETF with periodical re-investing

what to avoid, I wrote up here

https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy

0

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

Other than savings accounts, one option is resale endowment policies, which are short-term, high-interest savings plans that yields up to 4.6% projected IRR, likely to cover inflation.

Seek advice from a financial advisor if this is suitable for you.

Disclaimer: I own a business trading insurance policies.​​​

0

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