With the latest changes to the savings account interest rates, what are you doing differently to work around this?

Maxing out various frills-free accounts

• SingLife first 10k at 1.5%

• SingLife 10-99k at 1%

• Jumpstart first 20k at 0.4%

Hi there!

Definitely a valid concern when the announcement was announced.

Here are some of my 2-cents worth point of view.

You can explore into the following areas:

1. Money Market/Low Yield Funds - Looking at least 1.8% and above would align with your current strategy, possibly to grow idling monies before allocating into other investment assets.

2. SCB Jumpstart Account: $20,000 at 2% p.a

3. CIMB Fastsaver: 1% p.a (good for emergency funds)

Hope the above helps.

Cheers!​​​

Here to share my savings strategy! :) Would like to know if there's other better strategies out there or any opinion on my current strategy! :-)

*interest rates are subjected to post-changes from May 2020 onwards

1) SC Jumpstart : 2%pa on first 20k ($400/yr)

• already have 20k, placed these funds here to roll interest as I continue to build my capital.

2) DBS multiplier : 1.6%pa on first 15-25k ($240+/yr)

• I am currently building on my next 15k on this account so as to move on to step 3 (will explain again later). And since I have already started crediting my salary into POSB and opened a multiplier account so might as well continue on this account. However I still have to spend a few dollars on creditcard to acheive the 1.6%pa

3) OCBC 360 : 2.4%pa salary credit + 0.4%pa when you increase acc balance by $500/mth (as compared to prev month) + 0.4%pa $500 cc spend = 2.8-3.2%pa

• These rates are only for $35k, hence I will move my 20k(SC) and 15k(DBS) into this account and start earning 2.8-3.2%pa. As for excess funds (other than $500topup) I will continue to pump into SC jumpstart for no-frills 2%pa and I might just close DBS multiplier. *** is optional as we wouldn't want to spend the extra $500/mth for the interest of (0.004x35k=$140/yr), not really worth but if you are already spending that amount on cc normally then why not :)

• As for other criterias it is out of my way to achieve those categories so I would stick with this final step 3) which would make up my emergency funds + travel funds + electronics/medical etc

4) Invest!!!

• Excess funds after 40-50k cash should be up for investments! :) (only if the i/r are worth and depends on liquidity)

1) SingLife for emergency funds (2.5% on 10k)
2) SCB JumpStart (2% on 20k)
3) DBS Multiplier for salary crediting (2% on 50k, main acct with salary + cc + rsp)
4) Joint POSB Savings for salary and dividends crediting ($0 balance and maintains another multiplier acct with cc, 1.85% down to 1.6% on 25k)

Also consider if you can get more from OCBC 360 with salary + $500 cc