Asked 1w ago
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?
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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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:
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