Asked on 24 Mar 2020
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?
Hey Darren, I feel that it's alright so long as (1) there's a purpose for each account and (2) you are able to manage properly (know where your funds are kept and conditions to fulfill to get the best interest rate it offers). There was a similar question asked before, do check it out - https://seedly.sg/questions/how-many-bank-accounts-do-you-own-and-for-what-purposes
Regardless, all bank accounts are insured for deposits up to $75k.
Personally, I'm have 7 savings accounts now.
1) Singlife Account (2.5% p.a) - For life savings/emergency funds (maxed the $10k limit)
2) Etiqa Elastiq (2.02% p.a) - For life savings/emergency funds (bulk of my cash, take note that it's only 1.8% p.a for new users)
3) Standard Chartered JumpStart (2% p.a) - For everyday usage/expenses (few hundred dollars)
4) UOB KrisFlyer (0.05% p.a) - New account promotion, $80 after 6 months (put the minimum amount to quality for the promo)
5) DBS Savings Plus (0.05% p.a) - For funds transfer since I remember the account number and PayNow & PayLah is linked to it, used to be my main account (no cash inside, all incoming and outgoing cash gets transferred)
6) DBS Multiplier (0.05% p.a) - For Vickers cash upfront account (no cash inside, will transfer in when I execute a trade)
7) Maybank SaveUp (0.875% p.a) - To pay credit card bills (no cash inside, will transfer in when the credit card bill comes)
Used to have the following accounts but don't use it anymore.
1) CIMB FastSaver -1% isn't that attractive anymore
2) OCBC Savings account - Opened for the Geneco's $40 rebate
Hope this helps!
09 Apr 2020
09 Apr 2020
Hey Darren, I have an OCBC Bonus+ bank account at the moment for my emergency funds. I initially opened OCBC Bonus+ when I first started working to challenge myself to save $500/month to hit 1.45%pa. Even if I didn't manage to save that amount, I would still get 0.75%pa (back then was 1.05%pa). And if you withdraw money from the bonus+ account, for that month you will only get the base interest of 0.05%pa. Although the interest rate isn't as high as other HYSAs (like SCB Jumpstart) OCBC Bonus+ motivates me to save and prevents me from touching the money at all.
Some people have one bank account while others have mutiple bank accounts. It's up to you on how you want to utilise them.
This is an interesting question, purely in terms on calculating the difference in interest earned (potential of crisis aside). I previously developed a few calculators to determine monthly interest across multiple savings accounts in SG, holding certain criteria standard. So based on my research:
Let's say you have a S$51,000 balance with UOB One. Assuming you're crediting your salary and spent S$500 that month with your UOB credit card, you'll earn about S$88.16 in interest. Ok, so now let's split that balance. You now have S$25,500 in your UOB One Account (still crediting salary & spending with your card) and S$25,500 in your OCBC Bonus+ Account (assuming you haven't made a withdrawal and deposited S$500 since the previous month). Your respective interest from the month would now be S$41.40 (UOB One) + S$31.40 (OCBC Bonus+) = S$72.80. That's S$15.36 less than if you kept everything in your UOB One Account.
This may not seem like a lot, but it can add up across the year (keep in mind that your monthly interest will change based on your balance & savings behaviour!). The question becomes, how much are you willing to give up annually?
If you're interested in learning more about interest rate breakdowns, check out the guide I put together:
25 Mar 2020
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.
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:
I share quality content on estate planning and financial planning here.
3 more comments
25 Mar 2020
25 Mar 2020
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