National Service (NS)
Asked on 12 Aug 2020
I am currently 20 and have about 6.8k of cash, planning to settle my dbs tuition tion fee loan right after graduate. Where should i park my money for the next 7mth or 2yr 7mth(after ns)?
Hi Anon! You may want to split your money into Standard Chartered Jumpstart account, Singlife and StashAway Simple. They all offer 1%, 2.5% and 1.9% interest rates. Do note that Singlife and StashAway Simple's interest rates are not guaranteed, but certainly better than what the banks are offering.
With an amount of 6.8K Cash, a good option would be Singlife insurance savings account (up to 2.5%). Despite your capital (6.8k) being guaranteed, the interest of 2.5% is not guaranteed. It allows you enough liquidity (easy to withdraw via their app).
However, if you feel uncomfortable putting your money with singlife, you can consider standard chartered jump start (1%) up to 26 year old. It is a normal bank account.
1) Keep up to 6 months of your expenses in a high interest saving account, such as SingLife for 2.5% interest per annum. (Emergency funds)
2) Keep maybe 10% of your savings in your current savings account, if you haven't opened an account, I would recommend Standard Chartered JumpStart Acc. (This is for you to spend, credit your income to)
3) The rest will be fully invested in equities. (Stocks)
I would recommend DCA using Index Funds and learning how to pick your own stocks.
You should put your savings of $6.8K into Singlife to get 2.5% p.a !!! :))
If you’re okay to deal with the risk..., you can try Robo-Advisors ((higher returns)) — try to put your money in for at least a year :))
You can park your money with SingLife for 2.5% for maximum returns on your first 10k, although the 2.5% is not guaranteed and you should also know that it is a insurance savings plan and not a bank account. You can also consider Standard Chartered JumpStart account which has 1% interest on your savings, it is a normal bank account.
Both allow liquidity and for your funds to be taken out when you need it.
Since you are 20 years old, I highly recommend you to create a JumpStart account. It provides 1% interest for the first $20k and has no minimum amount required in the account.
You can also consider the SingLife account, which offers 2.5% for the first $10k and 1% for the next $90k. The only issues I have with the SingLife account are its liquidity and the app being rather laggy and buggy at times. (If you are interested to find out more about the SingLife Account, you can read my review here.)
I would suggest that you consider how much emergency funds you will need, especially during uni. It mainly requires you to consider your monthly expenses, but as a student, you can consider other things like if your parents are giving you allowance etc. If you are working part time or your parents are giving you allowance, you might not need so much emergency funds, and 3 months might just be sufficient. (To find out more about emergency funds, you can read my article.)
For emergency funds, I would strongly suggest splitting up your money between SingLife and JumpStart due to the liquidity issue of SingLife.
Maybe something like a 70/30 split for SingLife/JumpStart. This ensures that you have an amount of money in JumpStart that is liquid, and you can have instant access to it, if it is required for an emergency.
Your goal should be to build up your savings in the SingLife account to reach $10k. This allows you to maximise the 2.5%. (However, it also depends on how much you've decided your emergency funds should be.)
SingLife is offering a $10 referral bonus to both you and me if you sign up using my referral link. For more information on the referral (you will need to carry out some steps first to be eligible for the bonus), you can refer to the end of my article.
Hello, considering the current times we are in, you can consider parking the $6.8k cash in a Singlife account for the 2.5% per annum interest (non-guaranteed) up to the first $10k.
Hello, you can look at putting your money in Singlife account, they offer non guaranteed 2.5%pa interest rate. So far for me, the interest that i receive is quite near to 2.5% and withdrawal is easy and almost immediate. Other options available are Elastiq by Etiqa that gives guaranteed 1.8%pa interest rate but there is a lock-in for the first 3 months which might not be good if you need the cash for your expenses. Lastly, there is Standard Chartered JumpStart account which gives 1%pa interest rate.
Btw if you need a referral link to sign up for Singlife account, you can sign up HERE and you'll get a free $10 cash credited to your account upon successful sign up!
Singlife offer 2.5% interest withCapital guaranteed
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