On the other hand, MAS expects average inflation in Singapore to be between 2.5% - 3.0 % in 2013 and 2.0% - 3.0% in 2014 (reference from FocusEconomics)
In the current market where property and stocks are not performing well, people may park most of their cash in banks. Thus consumers should aim to get the best deals with higher return interest on those hard earn money we saved.
I personally recommend the following higher interest saving/current/fixed deposit accounts:
Interest: 0.8%
Minimum average balance: $1,000
How to enjoy 0.8% interest?
To enjoy 0.8% p.a. on the entire account balance, simply top up the month-end balance of your CIMB StarSaver (Savings) by: - Maintaining an increasing balance with monthly deposits of a minimum amount $100; OR
- Placing periodic lump sum deposits that will automatically convert by CIMB Bank into equal portions for your account.
Which mean we may place $ 10,000 and enjoy 0.8% p.a. interest for the whole $10,000 for the next few years.
Even if you are not able to save too much to meet their tabulated increase in account balance, you may still enjoy 0.5% interest which is 10 times more than other normal saving accounts.
The disadvantage of this account is that there are only 2 CIMB branches (Orchard and Raffles) in Singapore which allow you to withdraw cash. Alternatively, you may perform inter-bank transfer to get the cash out of the bank.
This disadvantage can be beneficial to those who wants to save and prevent themselves from easy access to the cash.
When I recommended this account to my friends, most of them asked "Is it safe? What if the bank closed down (which is highly unlikely)?"
This account is under Deposit Insurance Scheme which insured up to $50,000 in aggregate per Scheme member by Singapore law. Therefore, if you are saving less than $50,000, you are basically well protected.
To read more about the fall below fee and other terms and condition, you may visit the website: CLICK HERE
Interest: 1.88%
Minimum Average Balance: $3,000
How to enjoy 1.88% p.a. interest?
To enjoy 1.88% p.a. on your savings up to a $25,000 balance, simply spend $500 on the bonus$aver credit/debit card each month based on transactions posting date(s).
Do note that there is a annual credit/debit card annual fee which is waived for 2 years only.
The disadvantage is that you will have to make sure that you spend $500 on card each month. However, I believe that in our current society where living expenses are high, it is not too difficult to clock the $500 per month.
If you are not a big spender, you can choose to offer to pay first on your credit card whenever you dine out with your friends and get them to pay you by cash. This will help you to clock your $500 per month.
To read more about the fall below fee and other terms and condition, you may visit the website: CLICK HERE
Effective Interest: 0.69% p.a.
Minimum initial deposit: $10,000
This saving account is a little more complicated than the previous 2 accounts.
To enjoy 0.45% p.a. interest, there should be no withdrawal in the 1st month and 2nd month. On the 3rd month, if there is no withdrawal, there will be interest of 1.18% p.a. on the quarter month. The resulted effective interest p.a. if there no withdrawal made is 0.69% p.a.
Complicated? You may take a look at the following illustration taken from their website.
4. Fixed Deposit (FD)
Fixed Deposit is another safe avenue to park your spare cash with some returns.
If you are able to set aside cash for 12 months, you can place your money in FD that gives good interest return.
On and off, you may also find promotional Fixed Deposit accounts that give interest of more than 1% .
Currently, there are a few FDs that give quite good interest:
UOB
CIMB
Promotional 1.1% interest FD for 12 months tenor
Promotional 1.1% interest FD for 12 months tenor
Save smart for rainy days!
With love,
Evelyn
