For many of those beginning to serve NS, it will be the first time in their life that they will be receiving a substantial sum of money, akin to a salary. With this allowance comes the independence of having your own money in your bank account, and a newfound freedom. POSB/DBS's SAYE account is ideal for existing POSB/DBS customers who wish to save this sum of money and earn interest.
The integration with your existing POSB/DBS account is excellent, and when combined with the fact that POSB/DBS's website and app are pretty well-designed and user-friendly, makes banking chores easy and quick.
Friendly and responsive
The interest rate of 2%, while still valuable, can be insufficient and can provide inferior returns as compared to if the money was invested instead.
Fast and simple
[Terms and Conditions]
There is also the added bonus of no minimum deposit required, as compared to other accounts with comparable interest rates.
It teaches you to budget in advance, and plan out your spending, so it can be valuable in building discipline for those with tendencies to spend spontaneously.
While you forfeit interest accumulated on your money if you withdraw money from the account before 2 years, if you face liquidity issues, you can always change the amount credited to the account monthly to the minimum of $50.
Overall, you can regard this account as a starting point for young NSFs who may not have the confidence or the knowledge to invest in companies or funds themselves.