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Savings Accounts

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Insurance

Lifestyle

Fixed Deposits

Savings

Savings Accounts

When should I buy an endowment plan/insurance plan, and how much should I have in the bank to keep paying the premiums?
Cash Flow Firstly, we need to have a complete understanding on our cashflow. Through this process, we will understand our earning ability and spending habit. Here is a Guide: Understanding Your Personal Cash Flow Rainy Day Funds As insurance premium is part of cash outflow, therefore we need to account for this amount in our emergency funds. If you are paying for your insurance on a monthly basis, then you should set aside at least 3 to 6 months of the total insurance premium. If you are paying for your insurance premium on an annual basis, then I will suggest for you to create a budget to save up the amount. Here is how I do my budget: How I do My Budget: How to create a Monthly Budget Healthcare Insurance Healthcare insurance is always a top priority for most people. This is because medical inflation has hit 10% in 2019. Therefore, you should get it while you are healthy. More Details: Is MediShield Life enough in Singapore? Integrated Shield Plan Singapore: A Starter's Guide Life Insurance Next, we need to protect your future income earning ability. This is when we look into life insurance options. More Details: What is a Term Insurance Policy? What is a Participating Whole Life Insurance Policy? Term vs Whole Life Insurance Singapore How much insurance coverage should You have? As a general rule, 10% to 20% of your annual income on healthcare insurance and life insurance Basic Life Cover = 10 times your annual income Critical Illness Coverage = 5 times your annual income Endowment We will need to understand more about you and your goals before we evaluate whether an endowment will be suitable for you. Fixed Deposit Similar to endowment, we need to understand more about your financial goals in order to determine whether we need short-term liquidity. If so, max out the yield from the higher interest earning account before you look into fixed deposit. All in all, you should spend quality time to understand yourself and how you wish to plan for your future. Thereafter, we will know what is the right tool to use to achieve your goal. I share quality content on estate planning and financial planning here.
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Investments

Family

SG Budget Babe

Savings

Savings Accounts

How do you convince your parents that money in the savings account is just rotting away and should be taken out to invest?
Rais M
Rais M
Level 7. Grand Master
Answered on 26 Feb 2020
My parents are not that young anymore and I do not want them to take or feel that they are at risk when it comes to investment. After much consideration, I decided not to convince them to invest their money, but rather, I will invest more of my money to support them somehow. I am their retirement plan.
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Investments

Singapore Saving Bonds (SSB)

ETF

Savings

Savings Accounts

Robo-Advisors

Stocks Discussion

Online Brokerages

I am a fresh grad with about $40k in my savings accounts. I want to start doing long term investments but I am overwhelmed by the options I have. Any advice?
Oh Yi Ning
Oh Yi Ning, Financial Advisor at AIA Singapore
Level 6. Master
Answered 17h ago
Hey there! Great job on achieving that sum of money after freshly graduating! You don't want to go into SSB now because.. rates now are really low. Savings accounts wise, there will probably be a huge dip in the interest rates across the board; highly unlikely anyone will be spared. You might want to look into your insurance protection needs first before embarking on investing. Reason being, in the unfortunate event something happens, you won't have to liquidate your investment to meet that pressing need. Insurance provides that safety net. For beginners starting to invest, you can consider doing dollar cost averaging, ie. Setting aside a sum of money every month. That is way better than stock picking at the start and eliminates any form of emotional interference from it. Do your due diligence, you can pick a robo, go for an ILP with a trusted agent or use online brokers :) All the best! Financial planning is an integral part of life. You can reach me here to find out more.
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Savings

Savings Accounts

Investments

Robo-Advisors

ETF

Stocks Discussion

Online Brokerages

What should I do with my savings given that all the interest rates have dropped?
Hi Anon, I think there needs to be some fundamental understanding to the idea of holding cash. All you've listed are not perfect and direct alternatives to a savings account. They come with risk and are usually less liquid. If you need to hold cash, you hold cash. If you don't need to hold cash, it should be invested. So this needs to come back to how you're allocating resources. I don't want people to move out of cash because rates have dropped in search of a higher return but forgetting the fundamentals of cash. You're not supposed to make money from it. We've been spoiled over the last 5 years or so with High Yield Savings Accounts that many confuse them as alternatives to investment because "can make money". No, it has never been that way and it'll never be that way. But cash has it's place in everyone's portfolio. So now, how much cash should anyone hold? I have 3 pots. 1) Day to day spending (I cap this at 1 month income for liquidity) 2) Emergency Fund (6 months, 12 months, 24 months, up to you and at whatever stage in life you're at) 3) Money needed within 3 years (big ticket purchases that will happen and you can't risk that money). Anything above that should be invested according to your risk profile, AT ALL TIMES. So this will then be a combination of the above options like equities, fixed income, commodities, social security, property). So now, people are waking up realising "hey I have too much cash". But please don't move cash away if it's needed for the above 3 reasons, but move cash away if it is above and beyond those 3 reasons. A caveat would be people who want to save for a warchest althought I reject that idea. But if that's the case then that'll be pot 4. So figure out how much you should hold. Next, figure out your investment strategy and asset allocation for your risk profile/appetite. Then stick to it.
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Savings

Savings Accounts

Family

How do I close my father's bank account after he dies?
Hi anon, I am sorry to hear about your loss. For reference, your father's estate will be guide by Section 7 of the Intestate Succession Act unless he was a Muslim, in which case Muslim Law and the Syariah Court are involved. Your dad's next of kin will need to apply to the court for a Grant of Letters of Administration. The following toolkit should help: https://www.familyjusticecourts.gov.sg/docs/default-source/family-courts/probate/probatetoolkitnov2018.pdf. The Grant of Letters of Administration is is a court order authorising a person to administer the deceased’s estate, and distribute their assets, according to the Intestate Succession Act (ISA). The piority for the sequence of next of kin would be as follows: - Spouse - Children - Parents - Siblings - Nephews and nieces - Grandparents - Uncles and aunts To apply for the Grant, you will need: - Service Bureau Form for Application for Letters of Administration - Schedule of Assets (write in to the banks/CPF board/Financial Institutions, etc for help on this, after the application for the Grant has been accepted, as you will need to show proof of the court approved originating summons) - Certified true copies of: Death certificate of the deceased, Death certificates of next-of-kin (if applicable), Divorce certificate of the deceased (if applicable), Foreign grant (if applicable), Inheritance certificate (if applicable) Forms can be obtained from the Family Justice Court webpage You need to apply for it within 6 months of his passing. Acceptance of the application will take a few weeks. After that, you will need to file the Supporting Affidavit and Administration Oath. The person empowered by a Grant of Letters of Administration to administer a deceased’s estate is known as the administrator. There may be up to 4 administrators who must act jointly and unanimously. The administrator is required to first pay the debts, liabilities, taxes, funeral and other expenses of the deceased. Afterwards, the administrator will distribute the balance of the estate according to the ISA. If there are any beneficaries of the estate who are under age 21 according to the ISA, then 2 administrators are needed. With the Grant of Letters of Administration as well as the other documents on hand, you may then approach the bank to start the process of closing his bank account as well as withdrawal of the funds. The banks will have their own processes, so please check with them. As you can see, the process is not what I would call simple, and I have omitted some additional information, else this answer would be an essay. I'd recommend that you contact a probate lawyer for assistance. Take care and stay strong. All the best.
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Standard Chartered JumpStart Account

OCBC 360 Account

Savings

Savings Accounts

COVID-19

Fresh Graduates

Interest Rates

Singlife Account

Seeing that Standard Chartered Jumpstart and OCBC 360 interest rates p.a. have been cut effective from July 1, where should I jump to for my savings?
Boon Peng
Boon Peng
Level 6. Master
Answered 2d ago
Hello there! You might consider parking your money with Singlife as it will generate a non guarantee interest of 2.5% per year for your first 10 grand. You may take a look at their website: https://singlife.com/manage/ For your remaining 10k, it will be indifferent if you were to place your money with SCB or Singlife. In addition, if you have additional spare cash after you have considered your emergency funds, you might also want to explore investment to further grow your money.
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Savings Accounts

Savings

Standard Chartered JumpStart Account

Singlife Account

Is there such thing as having too many savings accounts?
Oh Yi Ning
Oh Yi Ning, Financial Advisor at AIA Singapore
Level 6. Master
Answered 19h ago
Hey there! You will need to see what is the purpose of the savings accounts. Just note that in general, we will see a trend across banks that interest rates will be cut. Ultimately, you will need to separate your separate accounts for spending, saving and endowments etc. Financial planning is an integral part of life. You can reach me here to find out more.
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Savings

Economics

Interest Rates

Savings Accounts

COVID-19

Is it possible for interest rates of high interest savings accounts to rise again?
Lim Qin Da
Lim Qin Da, Community Lead at Seedly
Level 6. Master
Answered 1d ago
Hey Anon! Given the current COVID-19 situation, I think interest rates of high savings bank accounts are unlikely to rise again at least in the near future. Although the government is pumping in money and we are slowly seeing signs of improvement and recovery, the projected recovery is slow and may take years for the economy to return back to normal. Many banks are doing the same as we see banks like SCB and OCBC slashing interest rates for their savings accounts significantly. It is possible though, for interest rates to recover when banks readjust it after the economy recovers and interest rates start to pick up. But time here is the big question and unfortunately, we could see the slashed interest rates as the norm for quite a long period of time as of now...
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OCBC 360 Account

OCBC 365 Credit Card

OCBC

Savings

Credit Cards

Savings Accounts

Do you think it is a wise option to cancel my OCBC 365 credit card since the Spend Bonus is removed from OCBC 360 account?
Kenneth Lou
Kenneth Lou, Co-founder at Seedly
Level 9. God of Wisdom
Answered 1d ago
Yes I would also think so. You should aim to now disconnect your spending and saving relationship with seperate banks/issuers that can give you a better interest rate. For example: - CIMB FastSaver has 1.0% pa flat on your savings (no conditions) - AMEX true cashback card, HSBC Advance card has flat cashback as well (no min spend) and a few other cards also can't rmb off hand! Just some food for thought, because I am also doing this right now to disconnect and re-think my banking relationships come July 2020 to optimise it better.
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OCBC 360 Account

Standard Chartered Bonus$aver Account

COVID-19

Savings Accounts

Savings

Seedly

Will Seedly revise their Best Savings Account Calculator in Singapore 2020, since OCBC 360 and SCB has changed their interest rate?
Kenneth Lou
Kenneth Lou, Co-founder at Seedly
Level 9. God of Wisdom
Answered 1d ago
Hello there! Thank you for asking this question :) Yes we will revise our calculator towards the end of the month as we enter July 2020. The main reasons are because: - The banks are still releasing their updated interest rates these few days/weeks - We would rather make a big ONE TIME change than little changes along the way - Most of the interest rate changes only take effect on 01 July 2020 Hope this answers your questions, and I am sure you will hear about it the moment we push it out and update it. Do share with your friends as well once it is up!
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