What kind of investment plans or bank saving accounts can I invest in during my time in national service (NS)? I am thinking to put some savings aside to let it grow while I serve NS. - Seedly

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Asked on 26 Sep 2018

What kind of investment plans or bank saving accounts can I invest in during my time in national service (NS)? I am thinking to put some savings aside to let it grow while I serve NS.

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Gabriel Lee
Gabriel Lee
Top Contributor

Top Contributor (Dec)

Level 6. Master
Updated on 07 Jun 2019
  • Open a POSB Save As You Serve (SAYE) account

When you enlist into NS, open a POSB SAYE account online and deposit some of your monthly salary into that account as it gives you additional 2% interest after you ORD. This is assuming that you do not make any withdrawals during the 2 years. If you do, you'll forfeit the additiona 2% interest that you could've earned. This makes you save up for your future funds or education. You can then use your remaining salary to go out and enjoy with your friends/family. I'm currently contributing $400 per month into my POSB SAYE account.

Alternatively, you can open a CIMB FastSaver account to earn 1% interest with no obligations and you're able to withdraw anytime as well.

  • Investments

You can easily invest in the STI ETF (Nikko AM) by setting up a Regular Savings Plan with POSB. All you need is just $100 a month to begin investing. Alternatively, you can choose to invest in US ETFs through robo-advisors such as Stashaway or Smartly. I'm currently contributing $100 per monthly into Stashaway as I want to diversify my investments out of the Singapore market and due to better historic performance. With that said, historical performance isn't a measure/indiciation of future performance. Alternatively, if you have a higher risk appetite, you can consider venturing into P2P lending and stocks. I'm planning to try P2P lending soon as it offers attractive returns (with higher risks of course). I have a friend in NS who invests in US stocks and made quite a profit as well but of course, you can easily lose money as well. Please only invest with money that you can afford to lose.

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Gabriel Lee
Gabriel Lee

27 Sep 2018

1) To me, I feel that the POSB SAYE is the best account while in NS since it gives me an additional of 2% interest after I ORD. Of course, you do not have to put all of your monthly salary into that account every month, you can just put from as low as $50 as you won't be able to withdraw it throughout the 2 years or you'll have to forgo the additional interest earned. So the money that you put in should be money that you foresee that you won't have to spend. I believe that it is the savings account which gives the highest interest for NSFs. Since you're a NSF, the salary credit doesn't meet the DBS Multiplier's minimum in order to earn additional interest, also you'll have to spend a certain amount on a few categories. Another alternative account would be CIMB FastSaver which gives 1% interest for no requirements and you can choose to withdraw your funds anytime instantly via FAST transfer.
Gabriel Lee
Gabriel Lee

27 Sep 2018

2) Go for CIMB FastSaver as it gives your 1% interest, no frills and hassle free. As shared in the previous answer (1), unless you meet the criteria to earn additional interests for DBS Multiplier, you'll only be earning the base interest of 0.05%. Check out their website for the requirements. As for investing with DBS Vickers, it depends on your risk appetite as stocks trading is rather risky in my opinion and you might not have a lot of time during NS to monitor your portfolio. If you're keen, you can check out Standard Chartered instead of DBS Vickers as it only charges a commission fee of $10 instead of $25 (Vickers). I think there's an article on Seedly which covers this, stock brokers 3) It's easy because you can set up the RSP online and choose to allocate an amount to invest from as low as $100. It'll be automatically invested for your every month on the same day, check out their website for more details too. Pretty simple to set up. https://www.posb.com.sg/personal/support/investment-ut-apply-invest-saver.html. If you want to diversify out of the Singapore market, use robo-advisors like Stashaway or Smartly. Personally, I'm investing with StashAway and Smartly due to better historic performance, but note that it isn't an indication of future performance. 4) I think you can do it through Standard Chartered bank too. My friend uses it and invests in US stocks like Apple and Nvidea.
Yong Kah Hwee
Yong Kah Hwee
Top Contributor

Top Contributor (Feb)

Level 6. Master
Answered on 26 Sep 2018

I agree with Nicholes that the SAYS account is recommended. Alternatively, you can go for the CIMB Fastsavers account, which gives 1% per annum and has no requirements.

Regarding investment plans, you can consider POSB Regular Savings Plan, or putting your money into robo-advisors. To know more, you can check out these articles by Seedly:

https://blog.seedly.sg/regular-savings-plan-the-piggy-bank-for-working-adults/

https://blog.seedly.sg/singapore-robo-advisor-investment-comparison/

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POSB Save As You Serve account.

Regular savings plan to invest in stocks monthly such as POSB, OCBC, Maybank, POEMS

If you have a lump sum alr in your bank and dont want to take much risk, look for fixed deposit with good interest is also not bad or put into the Singapore Saving Bonds.

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Investment plans: Index investing, P2P, robo-advisors. Savings accounts: CIMB fastsaver. Alternatively, you can put into SSB.

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Save As You Serve would be the best for regular savings contributions when you are in NS. Other than that, CIMB FastSaver as an alternative with their 1% interest rate. If you can meet the S$15,000 quantum, Citibank's Maxi Gain would be another good alternative starting at 0.8% of monthly SIBOR rate, plus a bonus rate of 0.1% every month (1.2% max) if you don't touch your balance.

Investments wise, if you are just starting out, consider Robo Advisories like Stashaway (no minimum amount). Maybank KE has a monthly investment plan that you can look at for S$100 per month or more that allows you to buy into the STI ETF or individual stocks from a list.

But, if you really want to supercharge your investments, save up and attend an investment workshop teaching on options portfolio management. Not cheap and relatively higher risk, but the returns are worth it. And you will have someone guiding you to achieve success.

Please do your own due diligence before you embark on any investments, and only invest what you can afford to lose. Hope this helps and all the best.

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