What are your thoughts on having more than one bank account to split your funds? - Seedly
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Darren Lee

Asked 1w ago

What are your thoughts on having more than one bank account to split your funds?

Hi, I was chatting with my friend and he brought up having a different bank account for your savings (eg. UOB One + OCBC Bonus+ Savings) just in case one bank faces a crisis. My initial thought was, what about the interest I lose from the UOB One?

May I check if anyone here has more than one bank account? Or what does the community think about his idea?

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N
Ninja
Level 6. Master
Answered 1w ago

All banks in Singapore have their deposits insured under SDIC up to 70k. What are you guys worried about?

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Pang Zhe Liang
Pang Zhe Liang

1w ago

Protected up to S$75k, not 70k
Darren Lee

1w ago

It was a topic of conversation and we chanced upon it. So ventured into it lorh. And as we talked more about it, i had this thought on whether having more than one account is beneficial or not
Pat
Pat
Level 5. Genius
Answered 1w ago

Actually am doing the same as your friend.

In the case of OCBC+, there is no spending required so it is a pure savings account with min $500 increase per month to qualify for the 1.45%.

UOB One would be your spending + crediting of salary account. The interest difference is probably 1-2%, but frankly splitting it up into 2 accounts is more for forced (emergency) savings rather than interest.

What your friend mentioned about bank crisis is valid -- max out the 75k SDIC insurance limit across the banks.

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Pat
Pat

6d ago

Open it before you hit 26 dude!! The age limit is only for account opening, 2% interest carries on. Good to use UOB One for spending to hit the $500 min spend on credit card I think? The rest are like investment accounts and should be separate imo.
Darren Lee

6d ago

Ohh! I thought the account closes once i hit 26! Thanks for highlighting! Okay! So now i guess I have a candidate for savings account!
峻豪
峻豪
Level 4. Prodigy
Answered 1w ago

I think most people out there has more than 1 bank account, just that which combination of saving accounts can get you most interest without changing too much of your lifestyle. What I normally tell people is that try not to overspend or over commit too much on insurance or investment products just to 2-3% interest. Always choose the saving account with requirements you can easily meet.

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Generally, the money in the bank is protected under the Deposit Insurance Scheme by SDIC for up to S$75,000 per bank per person.

Moreover, the next natural question will be, "do you need so much liquidity in the short-term?"

Anyway, I use mainly two bank accounts for budgeting purposes - one for salary and the other for expenses.

How I do My Budget:

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I share quality content on estate planning and financial planning here.​​​

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Pang Zhe Liang
Pang Zhe Liang

1w ago

Yes, it is more of control. You spend on UOB One credit card, not spend from UOB One bank account - I think you got a little confused here. So long as you meet the spending criteria for UOB One credit card, i.e. minimum spending of $500 monthly, you will receive a higher interest from UOB One account. To put it another way, you do not need to spend a single cent from UOB One bank account in order to earn a higher interest. - the emphasis is on the credit card.
Darren Lee

1w ago

Ahh, so we are leaving the rebate out of the picture as well? Since the inclusion criteria for cashback rebate is different from the bonus interest (as far as i know)