Asked on 07 Sep 2019
For reference, he has less than 50k in his savings and he is currently using POSB Savings.
Would switching to DBS Multiplier be good enough or are there better alternatives?
I would have previously recommended Citi Maxigain, but it seems that the minimum required amount has been bumped up.
For a no-frills savings account, CIMB Savings!
Open a poems account and u can purchase Phillips money market fund.
Interest rate is 1.3 per cent a year.
I would say, put the amount that your father would want to save into CIMB Saving account. Leave the minimum and spending amount in POSB saving account for usage.
So, he can monitor how much he spend monthly. On top of that, it is easier to draw out the money from POSB bank than CIMB bank.
Savings account with higher interest tends to need a salary crediting component.
Try looking at CIMB savings account, or even invest in SSB as a form of savings.
One of the main criteria for DBS Multiplier would be the need to credit his salary.
If he does not have any salary to be credited, the account will not be eligible for more interest.
1) Is he still getting a salary? And how much?
2) does he use credit cards? And how much?
3) does/can he invest?
4) is he paying any bills (min 3) or through giro?
Any of these questions above have a yes, you can look into...
OCBC 360 Account
UOB One Account
All these have calculators on the websites for you to calculate.
If not, or you’re looking at purely saving, you can look into CIMB Fastsaver. If I’m not wrong, Maybank has something too.
Or, if the money can be locked away?
If yes, can look into CIMB Fixed deposit too! 1.7% for 3 months not bad I thought!
I would recommend him to put most of his money in CIMB Fastsaver, which gives 1% fuss-free with a little bit at POSB Savings for cash he will use. Only transfer money from CIMB to POSB when require to withdraw.
1) CIMB FastSaver - Hassle-free to get a better high spending
2) DBS Multiplier - Easy to switch since it belongs to the same bank of his POSB Savings
3) OCBC 360 - more steps to take to get to the higher interest rate, but could be worth it.
These 3 are the best suited for someone interested to switch from POSB Savings.
Have a better return!