facebookWhere do people usually “park” their savings at? Interested to know where I can get a higher interest rate? - Seedly

Anonymous

25 Nov 2019

Saving Hacks

Where do people usually “park” their savings at? Interested to know where I can get a higher interest rate?

I’m currently 20 and awaiting NS. Leave your suggestions below, thanks in advance!

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Andy Yew

10 Jun 2019

Portfolio Manager at Phillip Securities

You can open a poems trading account (young investor) in Phillip Securities, park your money in the trading account and get higher returns on money market funds(PMMF is the largest retail sgd mmf in the market).

Current rates is 1.2712%pa for SGD and 1.9465%pa for USD. No lock in period, returns are calculated daily, no sales charge/administrative fee.

This is unconventional for someone at 20y/o will do(because usually nobody tell them). But a lot of our older client with surplus cash do this and it is something I think is the best place to park my idle cash for higher returns, high liquidity(1 day to withdraw to your bank via online/mobile apps) and very very Low risk.

More info here:
https://smart.poems.com.sg/smartpark/

Oh ya.. we operate the Phillip Jurong East branch, you can pm if you need help.

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Clarence Chua

10 Jun 2019

Financial Planning Specialist at Prudential Assurance Singapore

Depending on how much your savings is.

But if you are 20 and waiting for NS, I think CIMB Fastsaver will be the best account for you. No frills and offers up to 1.5%

Alternatively

Citibank Maxi Gain is a High Yield saving account and you will need 70k in savings for that

UOB one offers attractive interests rate that is tied with your credit card spendings if you can apply for one or your parents are good to apply one for you.
Make sure you are able to hit the card requirements without spending more before going for it too

Gabriel Tham

10 Jun 2019

Tag Team Member at Kenichi Tag Team

For a no frills, easy but high interest, you can go for CIMB fastsaver. First 50k already gives 1% for no requirements.

There are other savings accounts such as DBS multiplier, OCBC 360, UOB stash but these have requirements such as minimum salary credit, fulfil conditions, credit card spend etc. I think in NS it will be hard to hit those conditions too.

Another alternative is Singapore savings bonds. Minimum is $500 to buy in with a $2 fee.

Alex Chua

10 Jun 2019

Seedly student Ambassador 2020/21 at Seedly

Since u have yet to start NS, u can create a CIMB fast saver to park your money with 1% interest annually.
If you are confident of not withdrawing your money for 10 years, put into singapore saving bond(SSB). This will maximise the your interest of up to 2.6%. If you just want to park for 3 years, it will only get you less than 2% interest. Read up more. If you just wanna experience, go ahead and put in the minimum sum. Go read up and do a fact check

Once you have started NS which lasted 2 years. Put into SAYS. This will earn you 2.25% +a bonus yearly cash gift. Do note that this is a 2 year fixed deposit and need to commit to maximise the yield. https://www.posb.com.sg/personal/deposits/savin...

No point putting into multiplier account as it is hard for NSF and students to meet the minimum requirements to earn the interest. Even if you do meet, you are losing more than you earn.

At the meantime, u may want to learn investment. This can be easily be done by monthly investment plan, eg Posb invest saver, etc. Put into STI and hold as long as you can.
Note, it is not capital guarantee.
For more info, https://blog.seedly.sg/which-regular-savings-pl...

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James Yeo

10 Jun 2019

Editor at SmallCapAsia.com

Can try a few things:
Phillip money market fund
Singapore government bonds
High yield savings accoun...

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