Tuesday 20 October 2020

High Interest Accounts that I use | To store emergency/spare cash

Information is accurate as of published date but might change over time hence please do check before applying for anything mentioned.

High interest accounts are good but not essential because you having to manage them especially if Banks adjust their interest rates can be troublesome. Unless you have a really huge amount of liquid cash on you, I would say just stick to a few account and leave it as such.

So the first account that I opened after I started working in end 2018 was the

DBS Multiplier Account

I was attracted to this account because firstly, everyone in Singapore knows DBS and definitely has either a POSB or DBS account. Naturally, the terms offered was also rather attractive when it was first rolled out. I could easily fulfill 3 criteria (salary, investments [Dividends] and also credit card spend) and got an interest rate of about 2% p.a.

Definitely, changes happened considering the environment and currently, I can only fufill 2 categories as it don't buy stocks frequently with my DBS Vickers Account. This brings the interest earn to much lesser but it is still higher than the usual 0.05%.

So now, this account is my spending account and after my salary is credited in, it gets allocated to different accounts that I hold. So here is really the bare minimum for spending and after each month, I transfer whatever is left to my Standard Chartered which is part of my savings account. I have a already allocated a fixed saving amount, the transfer is like an extra/bonus that I do to clear out the account every month.

DBS Multiplier is still attractive to me because

  • It gives a higher interest rate than 0.05%
  • The fall-below fee of $5 is waived for you up until 29 years old
  • No minimum credit card spend to qualify

Singlife Account

For the Singlife account, it was previously really good with 2.5% p.a. meaning you will get about $20 per month by placing $10,000 inside. Do note that it is not a savings account. It will have changes to it's interest rate starting November 2020 with the rate dropping to 2% p.a. Still good but when you compare it with 2.5%, you feel like you are losing a bit.

I place $10,000 here because the after $10,000 till $100,000 earns you 1%. But I just channel whatever excess to my Standard Chartered Jumpstart Account.

Standard Chartered Jumpstart Account

When I first came across this account, it was really a no-frills and very very attractive account for the young people haha, as in for those aged between 18 - 26 years old. It originally provided 2% p.a. for deposit balance up to $20,000 and no fall-below fee as well with no criteria meaning that no salary credit or credit spending was required though you need to be btw 18 to 26 years old. That was amazing! Even though the interest rate has dropped to 1% p.a. I still find it good because it is really a no criteria account to get that 1% p.a.

  • What I also like is that Standard Chartered in Singapore does not have many ATMs so it is good cos if you will not draw the money out even though almost everything is cashless nowadays. But out of sight means out of mind literally.
  • The excess from the $10,000 that I put in Singlife account is channeled to this account to at least earn 1% p.a.

I definitely won't be moving my money around too much to chase after the interest rate unless something appears with more than 2% per annum. I find having to keep finding high interest rate accounts can be tiring and troublesome since my savings are also not that huge an amount. But it is great knowing that the cash you hold on too are earning some amount of interest and not just decreasing in value every minute.

Hope you guys enjoyed today's video, do like and subscribe and see u guys soon!

No comments:

Post a Comment