Bank Account

Asked by Anonymous

Updated 3w ago

What is the next best safest savings solution if my plan is to put aside $1,000 monthly for the next 10 years (not looking for investment/endowment plan)?

Anything better than ssb?

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Answers (12)

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Gabriel Tham
Gabriel Tham,
Top Contributor

Top Contributor (May)

Level 8. Wizard
Answered on 03 Jul 2018

SSB is a good choice if you intend to keep for 10 years. Else, you can try fixed deposits. The FD rates are rising recently

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Daniel Lee
Daniel Lee,
Level 3. Wonderkid
Updated 3w ago

I second the opinion provided by Gabriel Tham. SSB is a good SAVINGS instrument for the following reasons.

1) it provides the interest rate of a 10 year bond

2) behaves like a saving accounts (withdrawal without penalty)

3) $2 transaction cost allows for re-investment especially in an rising interest rate environment. This elimates any interest rate risk that you might encounter in the future. (for every $1,000 invested, it only takes a 0.4% increment in market interest rate to justify switching your old SSB with the newly issued SSB).

While i may not understand your goal of savings, here is my 2 cents based on your what you want. Savings at the end of the day only provides for a low level of return that at best helps consumers match up with inflation rate. Just like a farmer who would rather sell a chicken that doesn't lay eggs than to keep it, there is no incentive for consumers to hold on to cash that does not provide for positive inflation adjusted returns.

Most importantly, what are you looking to save for? Depending on your answer, just saving instruments alone might not be sufficient. You may want to look into it before fully committing to your current financial plan.

Cheers :)

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Jin Shun Chia
Jin Shun Chia

18 Sep 2018

Also agree with Gabriel and Daniel. Just adding on if you're not looking at SSB, investment or endowment, then the next one would be Standard Chartered e$aver or CIMB FastSaver accounts.
Yong Kah Hwee
Yong Kah Hwee,
Level 6. Master
Answered on 17 Sep 2018

I'd subscribe to the POSB RSP and put the rest of my money into a good savings account, SSB, as well as fixed deposits!

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Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 6. Master
Answered on 17 Sep 2018

Other than SSB, next safest alternatives would be fixed deposits, or high yielding saving accounts like CIMB Fastsaver or Citibank's Maxigain.

Unless you are prepared to stomach some risk, there's not really a lot of choices available. Do stay away from retail endowment/ILP/annuity products, not worth the investment and opportunity costs..

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Though you already know SSB and more into safe deposit, with 1k/monthly for the next 10 years. That's 12k per year for 10 years. Total of 120k.

Instead of just the passive SSB but and leave it there, can consider buying in a manner similar to DCA but some variations, build a bond ladder.

Read here : https://kpo-and-czm.blogspot.com/search/label/SSB

to find out how it is done and also use the excel build by author to find out it works. It can be set to work like a divident investing machine instead of just a regular bond / savings account. You can reinvest the interest or consider it as your "monthly dividend" lol :)

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Esther Esther
Esther Esther

07 Feb 2019

What's DCA?
HC Tang
HC Tang

07 Feb 2019

Oh it stands for Dollar Cost Averaging. It means monthly invest a fix amount automatically via giro to the investment regardless of situations usually using regular savings plan account. Due to the nature of buying consistently regardless of higher or lower price, averaging it will means cheaper overall. Though is a better methods of investing.
Jay Liu
Jay Liu, Diploma in Accountancy at KHEA
Level 6. Master
Answered on 16 Sep 2018

Putting it into SSB. You can also put it into FD during promotional periods like recently CIMB have promotion rates for their FD min placement of 10k though. Otherwise you can also consider CIMB fastsaver.

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Gabriel Lee
Gabriel Lee,
Level 6. Master
Answered on 16 Sep 2018
  • High interest savings account (e.g. CIMB FastSaver, DBS Multiplier)
  • Fixed deposits
  • Singapore Savings Bond
  • POSB SAYE account

These are the safest options to stick with

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Nicholas Chan
Nicholas Chan,
Level 5. Genius
Answered on 16 Sep 2018

Can consider index funds since you are doing a 10 year monthly dca. U are highly likely to come out ahead.

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Good Day Every Day
Good Day Every Day,
Level 6. Master
Answered on 16 Sep 2018

Singapore Saving Bond is the best option.

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Isabella Jo
Isabella Jo,
Level 4. Prodigy
Answered on 21 Jul 2018

Consider ssb. You just need to have cdp account and commit minimal $500. Fee is $2 to purchase and $2 if early redeem. No need to pay $2 if you let it run for 10 years. Capital guaranteed too

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Jeff Yeo
Jeff Yeo,
Level 6. Master
Answered on 19 Jul 2018

Stay far far away from endowment plans the returns are too low and time frame too long.

I think the banking landscape changes from time to time and it is important to review the promotions, rates and move our money around accordingly.

If you enough cash go go for a Bond, else SSB might be a good choice.

SAYE

MaxiGain

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Luke Ho
Luke Ho,
Level 6. Master
Answered on 19 Jul 2018

If you're aged 44-45 and can save that much, the highest risk free interest would literally be your CPF.

With 1k a month for 10 years compounding, you'd definitely have your FHS and then some, so you'd have a ton of excess at the end of 10 years as sweet, sweet cash.

Otheriwse, there's really no reason not to go for an endowment if you plan to save that much. Illiquid savings are far higher yielding than liquid as a general rule, and endowments have been upgrading and performing. You can get endowments that don't require more than 5 years payment and yield anywhere between 2.5 to 3.9% net of fees quite comfortably.

If you'd like to consider that as an option, you can reach me at https://www.facebook.com/luke.ho.54.

If you're not convinced and want to see potential proof, you can also reach me there. O_O

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