Asked on 01 Jul 2020
I have a sum left in my jumpstart account and I’m looking to withdraw it and deposit it into an account which offers better interest rates. Some criteria that I’m looking for:
flexibility for withdrawal (Just incase for future needs, I don’t need this flexibility now)
I'm currently looking to re-finance my HDB loan, so I need the flexibility to use in the next 2-3 months.
I just put my $30K funds that came back from a previous investment into both Dash EasyEarn and SingLife (maxed out $20K and $10K respectively).
Both of them require a minimum sum to maintain in the account ($2k for Dash and $5k for Elastiq) for you to enjoy the interest.
Both of them are capital guaranteed as well.
In terms of flexibility for withdrawal, Dash is slightly better due to requiring a lower minimum amount of $100, although you'll incur a $0.70 transaction fee each time. This fee will be waived if you transfer the money to Singtel Dash, although this amount of money will be locked up in Dash and you cannot withdraw it subsequently.
Another thing to consider is that Dash's interest rate is only at 2% for the first year, and for the next year onwards, the interest rate is only 1.5%. Elastiq has a guaranteed 1.8% yield for 3 years.
If you would like to find out more about Elastiq, I have written a review on it here.
Both products are similar but the dealbreaker for Dash EasyEarn is that it charges $0.70 per transaction for withdrawal to bank account.
As for Elastiq, there is a lock in period of 3 months while Dash EasyEarn has none.
For Dash EasyEarn, withdrawal amounts must be at least $100, in multiples of $100 per withdrawal. On the other hand, withdrawal amounts must be at least $500, in multiples of $500 per withdrawal.
I don't think you should be treating both products as savings account but instead as a more flexible time/fixed deposit.
Do consider Singlife account first if not yet utlilised. The account offers 2.5% (non-guaranteed) for the first $10,000. Besides the 3 points you mentioned, you can also consider their rates and minimum/maximum investment amount.
Dash (1.5% + 0.5% bonus, $2,000-$20,000)
Elastiq (1.8% first 3 years, $5,000-$50,000)
I haven't applied for either, but I dont think the process will differ significantly
Both are capital-guaranteed
Elastiq has a 90-day lock in, none for Dash but will incur fees for withdrawal
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