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

Asked on 24 Mar 2020

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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Gabriel
Gabriel
Level 8. Wizard
Answered on 09 Apr 2020

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!

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Darren Lee

09 Apr 2020

Oh my! Thank you so much for the breakdown! But mannn thats alot of account to manage and keep track off. Currently i plan to use Standard Chartered as my savings account and i will use UOB One for salary crediting, with my POSBkids for spendings. I've read a little on the Singlife, but may i ask for a little elaboration on it and how it works
Gabriel
Gabriel

09 Apr 2020

It sure is! But thanks to Seedly's mobile app, I'm able to consolidate and keep track easily all in one place. Basically, it works like a bank account which offers 2.5% interest p.a (non-guaranteed) where you can deposit and withdraw funds with no other penalties or conditions, such as minimum spending or salary credit. Check out my review here (https://seedly.sg/reviews/savings-accounts/singlife-account?rid=11334&utm_source=review_share&utm_medium=internal) and feel free to clarify further.
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J
Jane
Level 3. Wonderkid
Answered on 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.

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Carrie Rose
Carrie Rose, Senior Research Analyst at ValueChampion
Level 4. Prodigy
Answered on 08 Apr 2020

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:

https://www.valuechampion.sg/bank-accounts/best-savings-accounts-singapore​​​

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N
Ninja
Level 7. Grand Master
Answered on 25 Mar 2020

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

25 Mar 2020

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

25 Mar 2020

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
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峻豪
峻豪
Level 4. Prodigy
Answered on 24 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.

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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:

How to create a Monthly Budget

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

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Pang Zhe Liang
Pang Zhe Liang

25 Mar 2020

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

25 Mar 2020

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)
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