Where should I place my money since I’m serving the nation soon? TIA. - Seedly

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Asked by Anonymous

Asked on 22 Jul 2019

Where should I place my money since I’m serving the nation soon? TIA.

I don’t see myself spending much while serving the nation, and for emergency funds, i can probably ask my parents for support. As for experience, i have none but will do my part and research as well. I’m open to all suggestions!

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Hi anon! I’ve most certainly not served the nation but here at Seedly, we’re all about making smarter financial decisions. So let’s break things down together and see how we can grow your finances during your NS years.

TL;DR: These 3 tools should be able to help you grow your finances over your 2 years in NS:

  • POSB Save As You Serve (SAYS): 2% p.a. interest on your monthly savings
  • CIMB FastSaver Account: 1% p.a. interest for balances up to S$50,000
  • Investing as a beginner: STI-ETF, SSB, Robo-Advisors

For starters, it’s great that you don’t picture yourself spending a lot in your NS days! Do keep up with the good work and discipline over the next 2 years. With whatever savings you have at the moment together with your monthly NS pay, here are 3 different ways you can grow your money:

#1 POSB Save As You Serve (SAYS):

From as little as S$50 per month, you get to enjoy up to 0.25% p.a. base interest + 2% p.a. additional interest. Also, if you intend to get a debit card to use alongside the account, there’s the SAFRA DBS Debit Card and HomeTeamNS-PAssion POSB Debit Card with pretty reasonable cash rebate deals and additional privileges

#2 CIMB FastSaver:

A popular savings account among young adults, the CIMB FastSaver is a really attractive savings account due to its 1% p.a. interest rate.

  • From as little as S$1,000 per month, you get to enjoy 1% p.a. interests for balances up to S$50,000.
  • Beyond S$50,000 balance, you get to enjoy 1.50% p.a. interests up to S$75,000 balance.
  • Beyond S$75,000 balance, you’ll only get to enjoy 0.6% p.a. interests.

I’m pretty sure you have AND can maintain at least S$1,000 in the account given how disciplined you are. Not sure about you but 1% p.a. interest rate sounds pretty good to me especially when there aren’t multiple conditions to fulfil! There’s no need to hit a minimum spend every month, do salary crediting or meet any online bank transaction quota.

By simply depositing a portion of your monthly NS salary into this account, you get that 1% p.a. You can continue using the CIMB FastSaver Account beyond NS too, the account is pretty popular among undergrads and fresh grads saving up for their financial goals!

#3 Investing for beginners:

Given that you’re ready to do your own research, I take it that you want to start investing but you aren’t too sure where to begin or what to do. I recently answered a similar question for an investing newbie here, do take a read! To sum things up, I would recommend you invest in STI-ETF, SSB and Robo-Advisors since you’re a beginner. Given that you’ll be busy serving the nation, these investment products are great for you too since they’re passive investments over a long term horizon. To learn more about the 3 investment products, here are some useful Seedly articles to help you along the way:

STI-ETF:

SSB:

Robo-Advisors:

More importantly, as a beginner of investing who’s also busy serving the nation, I’d recommend you do Dollar-Cost Averaging (DCA) through a Regular Shares Savings (RSS) Plan. The idea behind doing DCA is essentially setting aside a sum every month (as low as $100!) to invest. You can do DCA for all 3 investment products by setting aside a sum of your monthly NS pay to invest in them, e.g. $100 in each investment product.

I hope this summary on where you can park your savings & NS pay in order to grow them over the next 2 years was helpful! Wishing you all the best serving the nation and achieving your financial goals! :-)

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LN
Lucas Neo
Level 2. Rookie
Answered 2w ago

Highly recommend using POSB:SAYS as you utilise your free time to educate yourself on investment. Remember to setup your SAYS account early, so that you’re able to start crediting your NS Allowance as soon as you first receive it.

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Leonard Tan
Leonard Tan
Level 1. Freshie
Updated 3w ago

I will ORD soon in another few more days and am quite embarassed to say that I just started saving seriously only recently by setting aside $100 a momth. If only I had been even more serious at the start, I would have already had a decent pool of svaings. sighs

1 comment

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Kenneth Lou
Kenneth Lou

3w ago

Haha it's fine man! Don't be so hard on yourself haha. I was like you last time also. Because I had a girlfriend (through Army as well, and she was in Uni) I almost had no savings left (oops) because every weekend we would go out. haha :D But I find that what's important is starting your savings and investment journey in University, that is most critical in my opinion!
Gabriel Tham
Gabriel Tham, Tag Team Member at Kenichi Tag Team
Level 8. Wizard
Answered on 22 Jul 2019

POSB Save as you serve is a pretty good account while serving NS. https://www.posb.com.sg/personal/deposits/savings-accounts/says Check it out and see if it suits you.

If not, there is always CIMB fastsaver, 1% interest per year if you have 1k and above inside.

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