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Anonymous

Posted on 23 Jun 2020

What is the correct strategy to pay for a big ticket item like the downpayment for a house or for kids? Should I go into a savings plan that ends just when I am planning to purchase it?

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2 answers

Discussion (2)

P

PillowCase

Level 7. Genius

Posted on 28 Jun 2020

Hey there.

If you are considering high-interest savings accounts, CIMB has recently announced today that they will be revising their interest rate for FastSaver. You might want to take a look here.

Other alternative choices that do not require spending/minimum sum include:

Singlife Account (2.5% p.a, capaital guaranteed, interest non guaranteed)

FSM Auto-Sweep Account (1.05%p.a, interest rates may be revised)

Stashaway Simple (1.9%, capital non guaranteed, interest non guaranteed)

SCB JumpStart (1%p.a, only for aged 18-26)

Crypto Earn (Depending on currency, as high as 16%p.a (CRO) without any prior staking. However, do take note of the volatility of cryptocurrencies. For higher interest rates, a fixed duration of 90 days is imposed before withdrawal can be made. Intetest is paid out every 7 days)

Crypto Exchange (20%p.a for CRO currency. Similar to Crypto Earn, just that fixed duration is set at 180 days. Interest is paid out daily)

Vivid Account (1.05% p.a for first 10k, 1.30% for 10k-20k)

Tiq 3 Year Endowment Plan (2.10%p.a, guaranteed)

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Malvin Tan WP

Malvin Tan WP

Level 7. Genius

Updated on 23 Jun 2020

Yes that would be wise because the inverse is to take a loan to finance your big ticket item.

In other words, if you are not saving now...you will pay for it later with interest

2

Question Poster

23 Jun 2020

So should the saving be done via financial instruments such as saving plans or just put in a high yield savings account? thanks :)

Malvin Tan WP

Malvin Tan WP

25 Jun 2020

Instruments such as saving plans aka endowment are designed such that you forsake liquidity but insurer compensate you with protection i.e death benefit or sometimes interest/yield. Whereas high yield savings are designed to make you sign up for ancillary products such as credit cards/insurance through banks but the bank compensate you with interest/yield. Depends on your preference

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