fbpx

A Guide to Singapore’s Best Savings Accounts

A savings account is one of the places to safeguard your emergency funds. These are risk-free, flexible accounts that offer interest on your money and allow you to access your cash whenever you need it.

Most banks in Singapore offer a savings account. With so many to pick from, how do you choose the right one?

Realistic Interest Rate vs. Maximum Interest Rate

The rates provided by the banks are often calculated based on an optimistic figure that assumes you qualify for their highest interest rate.

That’s not always the case. We’ll use a more realistic interest rate based on the following assumptions:

  • Have a minimum of S$10,000 in savings (enough to qualify for the lowest interest rate without incurring the fall below fees)
  • Earns a monthly salary of at least S$2,000
  • Spends at least $500 every month

Read more: 5 Ways To Kick Start The Savings Habit

OCBC 360 Account

If you save regularly, the OCBC 360 Savings Account is a good choice. While the bonus interest rate for maintaining a S$100,000 account balance is out of reach for most of us, the base rate with a bonus from crediting your monthly salary grants a decent 2.00% rate.

Unlike other banks that reward you for spending, OCBC encourages you to save by offering you up to 2.40% p.a. bonus interest rates if you increase your average daily balance by at least S$500 monthly.

Account Details & Interest Rate Structure

Details
Minimum Initial DepositS$1,000
Minimum Average Daily BalanceS$3,000
Fees
Fall Below Fee: S$2 (Waived for the first year)
Interest Rates (p.a.)
Realistic Interest Rate: 0.05% – 2.50%
Maximum Interest Rate: 7.65% (At least a S$100,000 balance)
Rates Breakdown (p.a.)
Base Rate: 0.05% p.a. (No requirements)
Salary Bonus: 2.00% (Credit your salary of at least S$1,800 through GIRO)
– 2.00% (First S$75,000)
– 4.00% (Next S$25,000)
Save Bonus: 1.20% p.a. (Increase your average daily balance by at least S$500 monthly)
– 1.20% (First S$75,000)
– 2.40% (Next S$25,000)
Spend Bonus: 0.60% p.a. Charge at least S$500 to your OCBC 365 Credit Card each month.)
Insure Bonus: 1.20% p.a. (Purchase an eligible insurance product from OCBC)
– 1.20% (First S$75,000)
– 2.40% (Next S$25,000)
Invest Bonus: 1.2% p.a. (Purchase an eligible investment product from OCBC)
– 1.2% (First S$75,000)
– 2.4% (Next S$25,000)
Grow Bonus: 2.4% p.a. (Maintain an average daily balance of at least S$200,000)

DBS Multiplier Account

The DBS Multiplier Account is a great fit for high-spenders who use a variety of DBS’s financial products and services. Effective interest rates are the real returns on a savings account after taking into account compound interest.

The effective interest rate of 4.10% p.a. offered by DBS is one of the highest in Singapore.

This account is also suitable for students or young adults under 29 years old who find it hard to meet the transaction requirements. Customers already enjoy an additional interest rate of 0.40% without spending any money.

Account Details & Interest Rate Structure

Details
Minimum Initial Deposits
Minimum Average Daily BalanceS$3,000
Fees
Fall Below Fee: S$5 (Waived if less than 30 years old, or if it’s applicant’s first account with DBS)
Interest Rates (p.a.)
Realistic Interest Rate: 0.05% – 0.90%
Maximum Interest Rate: 4.10% (At least a S$100,000 balance)
Rates Breakdown
(Income with spending / p.a.)

Total eligible transactions per month and its rates:

Below $2,000:
– 0.050% (Category 1*)
– 0.050% (Category 2*)
– 0.050% (Category 3*)

S$2,000 to S$2,500:
– 0.90% (Category 1)
– 1.70% (Category 2)
– 2.00% (Category 3)

S$2,500 to S$5,000:
– 1.50% (Category 1)
– 1.80% (Category 2)
– 2.20% (Category 3)

S$5,000 to S$15,000:
– 1.80% (Category 1)
– 2.10% (Category 2)
– 2.40% (Category 3)

S$15,000 to S$30,000:
– 1.90% (Category 1)
– 2.20% (Category 2)
– 2.50% (Category 3)

Above S$30,000:
– 2.20% (Category 1)
– 3.00% (Category 2)
– 4.10% (Category 3)

*Category 1: Income + 1 transaction. First S$50,000
Category 2: Income + 2 transactions. First S$100,000
Category 3: Income + 3 transactions. First S$100,000

Rates Breakdown
(Income and PayLah! / p.a.)

Total eligible transactions per month and its rates:

Below S$500: 0.05% (First S$10,000)
Above S$500: 0.55% (First S$10,000)

Rates Breakdown
(PayLah! Only / p.a.)

Total eligible transactions per month and its rates:

No Minimum Spend: 0.50%

*Only applicable to individuals under 29 years old

Maybank Save Up Account

Consider the Maybank Save Up Programme if you are looking to take out loans.

Consumers who use at least three Maybank products or services enjoy a maximum effective interest rate of 3.0%. It’s easy to hit the requirement since nine of the bank’s products qualify under the programme.

Account Details & Interest Rate Structure

Details
Minimum Initial Deposit
Singaporeans & PRs: S$500
Foreigners: $1,000
Minimum Average Daily BalanceS$1,000
Fees
Fall Below Fee: S$2 (Waived if less than 25 years old)
Interest Rates (p.a.)
Realistic Interest Rate: 0.25% – 0.35%
Maximum Interest Rate: 3.00% (At least a S$50,000 balance)
Rates Breakdown (p.a.)

Base Rate:
– 0.15% (First S$3,000)
– 0.25% (Next $47,000)
– 0.25% (Remaining balance is above S$50,000)

Bonus:
– 0.1% (1 product or service)
– 0.7% (2 products or services)
– 2.75% (3 products or services)

UOB One Account

The UOB One Account is one of the best saving accounts that do not have a compulsory salary requirement.

UOB also offers customers a higher interest rate as long as they make three GIRO payments, not just have their salary credited into the account. This would mainly benefit those who do not have a steady monthly income.

Account Details & Interest Rate Structure

Details
Minimum Initial DepositsS$1,000
Minimum Average Daily BalanceS$1,000
Fees
Fall Below Fee: S$5 (Waived for first 6 months for accounts opened online)
Early Account Closure Fee: S$30 (Within 6 months from opening)
Interest Rates (p.a.)
Realistic Interest Rate: 0.25% – 0.75%
Maximum Interest Rate: 7.80%
Rates Breakdown (p.a.)

Account Balance:

First $S15,000:
– 0.25% (Category 1)
– 0.75% (Category 2)
– 1.40% (Category 3)

Next $S15,000:
– 0.25% (Category 1)
– 0.80% (Category 2)
– 1.40% (Category 3)

Next $S15,000:
– 0.25% (Category 1)
– 0.85% (Category 2)
– 1.50% (Category 3)

Next $S15,000:
– 0.25% (Category 1)
– 0.90% (Category 2)
– 1.50% (Category 3)

Next $S15,000:
– 0.25% (Category 1)
– 2.50% (Category 2)
– 2.50% (Category 3)

Next $S25,000:
– 0.05% (Category 1)
– 0.05% (Category 2)
– 3.60% (Category 3)

Above S$100,000:
– 0.05% (Category 1)
– 0.05% (Category 2)
– 0.05% (Category 3)

Category 1: Minimum spending with eligible UOB card
Category 2: Minimum spending with eligible UOB card AND make 3 GIRO debit transactions
Category 3: Minimum spending with eligible UOB card AND credit salary via GIRO

CIMB FastSaver Account

The CIMB FastSaver Account is one of the best saving accounts in Singapore for its high base rate. Depositing your money in a FastSaver account alone qualifies you for a 0.5% interest rate.

Furthermore, it has a minimum deposit amount of only S$1,000 and no fall below fee, which makes it an excellent choice if you are still a student or young adult without much savings yet.

Account Details & Interest Rate Structure

Details
Minimum Initial DepositsS$1,000
Minimum Average Daily BalanceNone
Fees
None (No fall below fee)
Interest Rates (p.a.)
Realistic Interest Rate: 1.50% – 2.20%
Maximum Interest Rate: 4.20% (At least a S$10,000 balance)
Rates Breakdown (p.a.)

FastSaver Balance:

First S$10,000:
– 1.50% (FastSaver Only)
– 2.20% (FastSaver and Visa Signature Credit Card)
– 3.50% (FastSaver and Investment/Insurance)
– 4.20% (FastSaver, Visa Signature Credit Card and Investment/Insurance)

Next $15,000:
– 1.50% (Across categories)

Next $25,000:
– 2.50% (Across categories)

Next $25,000:
– 3.50% (Across categories)

Above $75,000:
– 0.80% (Across categories)

TLDR: Summary

Feeling overwhelmed? Don’t worry. Here’s a summary of what the different savings accounts offer and who should tap on them.

Savings AccountRealistic Interest RatesMaximum Interest RatesSuitable For
OCBC 3600.05% – 2.50%7.65%
Consistent wealth growth
DBS Multiplier0.05% – 0.90%4.10%
Salaried workers
Maybank Save Up0.25% – 0.35%3.00%
Users who are planning to take out loans
UOB One0.25% – 0.75%3.60%No fixed salary
CIMB FastSaver1.50% – 2.20%4.20%
Students and young adults

Which savings plans you should pick ultimately depends on your goals and current financial situation.

And though savings accounts do not offer big gains, they help you grow your money slowly and steadily. The effects of a small increase won’t be felt immediately, but you’ll definitely reap the benefits in time to come.

Read more: 4 Habits Preventing You From Saving Without You Realising

Leave a Reply

Your email address will not be published. Required fields are marked *