We have all heard of financial gurus chanting about how putting your money into a savings account is bad and probably no different from putting them into a biscuit tin under your bed. That is true to some extent.
If you follow any financial advice, they will encourage you to put your money into index funds, bonds or any high yield financial products. However, you cannot just put all your money into investments. You will still need to have a savings account to keep some petty cash and emergency funds.
A traditional savings account provides little to no interest and your money will slowly erode with inflation over many years. Therefore it is important to find the best savings account, that brings you the most benefits. Here are some examples.
High Interest for Young Adults
DBS Multiplier Account offers up to 3% p.a. This account is suitable for younger people. This account requires no minimum amount and for individuals age 29 or below, there is no minimum spending required. This account is suitable for younger people who may not have large spending habits and keep a large amount of money in their savings accounts. Those older than 29 years old can earn higher interest rates by spending S$500 through PayLah! Retail spending. Alternatively, you can also spend upwards of S$2,000 on credit cards, home loan instalments, insurance and investment to earn the higher interest rates.
An Account with Flight Deals
UOB offers a unique take on savings accounts, by introducing their KrisFlyer Account. This account is suitable for frequent flyers as it provides flight rewards instead of higher interest rates. For credit card users, you get to enjoy 5 bonus miles per $1 spent. Debit card users can also enjoy perks like discounts on Changi wifi, exclusive privileges on Scoot like priority check-in and additional baggage allowance.
A Good First Account
Standard Chartered Jumpstart Account is another youth account with a different twist. It is similar to DBS Multiplier Account where it does not have a minimum spend requirement. They offer reasonable rates at 0.50% p.a. interest for account balances up to S$20,000 and 0.50% p.a. step up interest on deposit balances up to $20,000 when you invest. However, they offer a 1% cashback when you make transactions on eligible debit card spending. The transactions include ATM, NETS, paying insurance and EZ-Link Card transactions. A Savings Account for the Older Individual
Maybank Privilege Plus Savings Account is a great savings account for older individuals aged 50 and above. With an initial deposit of S$500 for Singaporeans/PRs and S$1,000 for Foreigners, you get to unlock the multitude of benefits Maybank offers. If you are aged between 50-70 and have at least S$30,000 in your savings account, you will be entitled to complimentary personal accident insurance, accidental medical reimbursement and permanent disablement benefits.
There is also a birthday privilege where you can get discounts on your birthday month. Furthermore, there are additional privileges should you choose to make a transaction with certain Maybank cards. For Maybank Platinum Debit Card users, you get to enjoy dining, medical, wellness and travel discounts. Maybank Family & Friends Card users can earn 8% cash rebates for spending on daily essentials.
Savings accounts do not have to be a sophisticated biscuit tin. Whether you are young or old, travel frequently or not, find a savings account that fits your needs and lifestyle. By doing so, you can maximise the savings that you put in your savings account.