What is a Savings Account?
A savings account is an interest-bearing deposit account.
Deposits are held at a bank or financial institution and provides principal security and interest rates in return.
How to choose the best Savings Account with the highest interest rate for you?
Currently there are a few popular savings accounts in Singapore which provide the highest interest rates.
They are mainly:
- DBS Multiplier
- OCBC 360 Savings Account
- UOB One Account
- Maybank SaveUp
- BOC SmartSaver
- Standard Chartered Bonus$aver
- CIMB FastSaver
- Citibank InterestPlus
The best savings account for one depends mainly on meeting criteria set by the banks.
These variables can be mainly broken down into:
- Bank balance
- Monthly salary to be credited into the savings account
- Monthly credit card spend
- Monthly bill amount
- Number of bills per month
Unit Trust Investment
- Annual lump sum with the bank
- Monthly investment with the bank
- Monthly instalment of home loan from the bank
- Annual insurance spend with the bank
The Pros and Cons of Savings Accounts
Advantages of Savings Accounts
There are a few benefits to parking your excess cash in a savings account:
- Money in a savings account gives interest as compared to that in a checking account.
- Money in a savings account can be easily accessible and gives one more liquidity as compared to stocks, bonds or other possible financial products.
Disadvantages of Savings Accounts
- Liquidity of savings account can discourage one from saving since the money is readily available for one to spend.
- Interest rates of savings accounts are usually lower than most of the financial products available.
- Savings accounts that provides high interest rates in Singapore usually comes with certain terms and conditions.
How to apply for a Savings Account?
If you are an existing customer with a bank, most banks allow you to open your Savings Account through their online iBanking system.
New customers can do so online by filling up an online application or simply head down to any of the bank's branch to do so.
Documents required to apply for a Savings Account:
- The initial deposit in form of cash or cheque
(Assuming the savings account requires a minimum deposit)
- Passport/ Employment Pass/ S Pass/ company letter/ proof of residential address
Depending on the bank, application for a savings account can be done within a week.
Tools to help you choose a Savings Account with the highest interest rate?
To help Singaporeans make smarter personal finance decision, here are some tools to help you:
One can read up our article on what all the banks have to offer when it comes to savings account:
or simply use the Best Savings Account Calculator to help you decide on the best savings account.
If there are still questions after reading Real User Reviews on the savings account, ask the community at Seedly QnA.