A Savings Account enables you to deposit money for safe-keeping, while also earning interest on your balance to accumulate your cash. This is different from your Current Accounts that are mainly used for simple day-to-day transactions and not specialised for saving money.
Savings Accounts are extra beneficial for families and parents as it not only encourages savings but also frees up money for flexibility in case of emergencies.
This article will tackle the best Savings Accounts for you and remember that you can also open a Junior Savings Account for your kids.
How To Choose The Best Savings Accounts
We have listed some important factors you should look out for when deciding which Savings Account is the most suitable for you:
- Minimum balance requirements: This is the minimum daily amount you are required to have in your account. It is common for banks to penalise users with a fall below fee if they fail to meet this minimum balance requirement. It would be good to go with accounts that have a lower requirement as this would make it easier to avoid paying any fees if you somehow fall below the required minimum.
- Interest rate: An interest rate is the money you earn in return for holding your savings in an account. A high interest rate means that you earn more.
- Annual Percentage Yield (APY): This reflects the actual rate of return that will be earned in one year if the interest is compounded. A high APY means that your money will grow faster. Thus, it is best to find a Savings Account that has both a high APY and high interest rate, so that your money accumulates faster.
- Accessibility and ease of use: Choose a bank and account that is the most convenient for you. Accounts that have more features such as online and mobile banking are convenient, especially in the current era.
Best Savings Accounts In Singapore
Choosing the best savings account may be a difficult task at first glance. However, you don’t need to worry as we have chosen a few of the top savings accounts available today.
[product-comparison-table title="Best Savings Accounts In Singapore"]
The OCBC 360 Account is great for encouraging its account holders to save up as it rewards them with an additional 0.1% for each month that their account balance increases by SGD 500 or more.
It also offers a boosted interest rate for those who credit their monthly salary of at least SGD 1,800.
Additionally, if a user purchases an eligible insurance or investment product, their interest rate will benefit as well.
Ultimately, these bonuses can add up to 3.00% per annum effective interest on top of the 0.05% per annum base rate. Note that this bonus interest applies up to your first SGD 70,000 only.
- Minimum Initial Deposit: SGD 1,000
- Minimum Average Daily Balance: SGD 3,000
- Fall below fee: SGD 2 that is waived for first year
- Base interest rate: 0.05% per annum
- Minimum Age: 18 Years Old
Benefits:
- Minimum Salary of at least SGD 1800 through GIRO
- High effective interest rate of up to 3.35% per annum
- Bonus rewards for consistent saving:
- Increase your savings by SGD 500 monthly to enjoy 0.10% bonus interest on the first SGD 25,000
- 0.20% bonus interest for the next SGD 25,000
- 0.40% bonus interest for the third SGD 25,000
- If your account balance is above SGD 200,000, you can benefit from an additional 0.40% on your first SGD 75,000 deposited
- Maximum interest attainable at a SGD 70,000 balance
CIMB FastSaver Review: Best Savings Account With No Fall Below Fees
The CIMB FastSaver lives up to its “fastsaver" name as it does not give any penalty to those who fall below the minimum daily average balance.
It offers convenient access to internet banking services via CIMB Clicks Internet Banking and CIMB Clicks on Mobile.
It also offers one of the highest interest rates for a savings account: 1% per annum. However, do note that you must also apply for their Visa Signature card to enjoy this benefit.
- Minimum Initial Deposit: SGD 1,000
- Minimum Average Daily Balance: SGD 1,000
- Fall below fee: None
- Base interest rate: 0.30% per annum (1.00% per annum if you apply for their Visa Signature card)
- Minimum Age: 16 Years Old
Benefits:
- No fall below fee
- Conveniently access CIMB’s internet banking services via CIMB Clicks Internet Banking and CIMB Clicks on Mobile
- Max effective interest rate: 0.70% per annum at SGD 100,000 balance
- Interest Rates with Visa Signature card:
- 1.00% per annum on first SGD 10,000
- 0.30% per annum on next SGD 65,000
- 0.15% per annum above SGD 25,000
- Account holders can also enjoy instant SG-MY Funds Transfers that are guaranteed safe and free of any service changes.
UOB One Savings Account account holders are able to earn up to a 2.50% per annum interest rate upon reaching a SGD 75,000 balance.
A UOB One Debit Mastercard will be automatically issued to account holders upon successful application of their UOB One Account.
Not only that, it also features attractive promotions that help to encourage its account holders to save up, so be sure to check their website for special promos.
- Minimum Initial Deposit: SGD 1,000
- Minimum Average Daily Balance: SGD 1,000
- Fall below fee: SGD 5
- Base interest rate: 0.05% per annum
- Minimum Age: 18 Years Old
Benefits:
- Interest Rate if you meet the card spend of minimum SGD 500:
- 0.25% per annum on first SGD 60,000
- 0.05% per annum beyond SGD 75,000
- Interest Rate if you meet the card spend of minimum SGD 500 and credit your salary/make 3 GIRO debit transactions:
- 0.50% per annum on first SGD 15,000
- 0.55% per annum on next SGD 15,000
- 0.65% per annum on next SGD 15,000
- 0.80% per annum on next SGD 15,000
- 2.50% per annum on next SGD 15,000
- 0.05% per annum beyond SGD 75,000
- You can get an up to 10% rebate on Shopee Singapore, Dairy Farm Singapore, Grab and Singapore Power with UOB One Credit Card & an up to 3% rebate on Shopee Singapore, Dairy Farm Singapore and Grab with UOB One Debit Card.
The Maybank SaveUp Account is ideal for those who are thinking of taking out a loan as it can help you earn bonus interest.
Certain loans are included in their suite of nine products* that can earn up to 3% per annum interest on your first SGD 100,000. See the list in the benefits section below.
It also offers attractive and competitive interest rates. Furthermore, Maybank SaveUp has one of the lowest minimum initial deposits so it is convenient to apply.
- Minimum Initial Deposit: SGD 500 for Singaporeans & PR, SGD 1,000 for Foreigners
- Minimum Average Daily Balance: SGD 1000
- Fall below fee: SGD 2 (waived if user is below 25 years old)
- Base interest rate: 0.05% per annum
- Minimum Age: 16 Years Old
Benefits:
- Account holders can earn bonus interest based on the number of qualifying products held:
- 1 qualifying product: 0.1% per annum bonus interest
- 2 qualifying products: 0.7% per annum bonus interest
- 3 qualifying products or more: 2.75% per annum bonus interest
- Choose from a suite of nine qualifying products* to enjoy up to 3% per annum interest on your first SGD 100,000:
- GIRO Payment/ Salary Crediting
- Card (Maybank Platinum Visa Card and/or Horizon Visa Signature Card)
- Structured Deposits
- Unit Trusts
- Regular Premium Insurance
- Home Loan
- Car Loan
- Renovation Loan
- Education Loan
*Each qualifying product has its respective criteria and terms, including minimum transaction amount, duration of bonus interest.
OCBC Bonus+ Review: Best Savings Account For Consistent Savers
The OCBC Bonus+ Savings Account has a higher minimum initial deposit than average. Thus, it is a good fit for those who save consistently or already have capital that is ready to be parked.
On the other hand, it is also a good fit for those who want an option that will help them strictly save, as the minimum amounts required are higher.
Consequently, the higher amount will make it less tempting to withdraw.
- Minimum Initial Deposit: SGD 5000
- Minimum Average Daily Balance: SGD 3000
- Fall below fee: SGD 2
- Base interest rate: 0.05% per annum
- Minimum Age: 16 Years Old
Benefits:
- Earn bonus interest:
- When you make no withdrawals in a month (+ 0.10% per annum)
- When you deposit at least S$500 and make no withdrawals in the same month (+ 0.25% per annum)
Comparison Table Of The Best Savings Accounts
Now that you have a primer on different Savings Accounts available, here’s a quick recap of the information presented in this article:
* Waived for first year
** Waived if less user is than 25 years old
More saving tips
- Set a budget: Setting a budget is important as it gives you more control over your money. It is a good way for you to organise your spending. This can also help you ensure that you set aside a buffer for any unexpected expenses and reduces your risk of overspending.
- Track your spending: Tracking makes it easier for you to identify and reduce any unnecessary wasteful spending habits.
- Focus on recurring expenses: It is good to look back on your routine payments and recurring expenses and see if there are ways that you can reduce these amounts.
- Pay off your credit card: Credit card debt is a deadly blow to your efforts to save. If you rack up debt due to late payments, you will never be able to reap the fruits of your saving habits and may even incur a net loss.
