Almost every bank in Singapore, including foreign banks with limited services such as RHB and State Bank of India, offer savings and current accounts. Everyone needs a savings account. How else can one store their money? And when banks give you higher interest rates and help your savings grow, it’s a great added incentive to keep our money there. You also need to keep an eye out for promotional offers from banks to enjoy the finest privileges in savings accounts.
When a bank promises you higher interest rates, there would be conditions to be met and terms to be considered. Let us look at the 5 best savings accounts in Singapore, their terms and conditions, and their pros and cons.
Top savings accounts in Singapore
OCBC Frank Account
This is a must-have account for youngsters and newly employed people, because it allows you to save with little restrictions.
The key pros of having this savings account are:
- No-frills account: The OCBC Frank Account doesn’t impose restrictions on you. You don’t have to maintain a minimum balance or deposit a minimum amount to the account. There is no monthly service fee if you are less than 26 years old.
- Higher interest rates: This account gives you up to 0.4% interest per year on your savings, instead of the usual 0.05%. The first S$10,000 in the account gets you 0.2% p.a., from S$10,001 to S$100,000 you get an interest of 0.3%, and from S$100,001 to S$500,000 you get an interest of 0.4%.
- Cashback rewards: If you credit your salary to the Frank account, you get a cashback of S$30 for salary credits of S$500 to S$1,500, and S$60 for salary credits of above S$1,500. The first 500 new customers who are less than 30 years old are eligible for this cashback.
- Customizable debit card designs: The debit card associated with your savings account can be customized from a design gallery of over 120 images. You can sport your favorite team, axiom, image or pattern on your debit card and let it enhance your personality.
- Discount offers: There are periodic promotions available on the Frank account.
Some of the limitations of this account are:
- Fall-below fees: If you are above 26 years old, you will be required to pay a monthly service fee of S$2 in case the average daily balance goes below S$1,000.
POSB Save As You Earn Account
Also known as the POSB SAYE Account, this savings account gives you higher interest rate if you credit your salary to it.
Here are the pros of having this savings account:
- Higher interest earnings: You get an interest of 2.05% p.a. – which is 2% higher than a normal savings account – if your salary is deposited into the POSB SAYE Account. The additional interest is given only to the amount that you designate as fixed savings. The fixed monthly savings amount should be between S$50 to S$3,000. You also need to fix which date of the month – between the 1st and 25th – when the savings are locked. You can earn up to S$51.31 at the end of 2 years through interest if your monthly savings equal S$100.
- No withdrawal clause: You can only get the higher interest if you don’t withdraw any money from the account.
- Higher interest only on the fixed savings: You get 2.05% interest only on the amount that you decide as the fixed monthly savings. For the remaining amount in your account, you will earn only the base rate of 0.05% p.a.
Citibank Tap and Save Account
Citibank Tap and Save account does not give you a high interest rate, but there are other perks to look forward to.
Here are some pertinent reasons to get this savings account:
- Interest rate: The Citibank Tap and Save Account gives you an interest rate of up to 0.13% p.a. The base interest rate is 0.01% but as your balance increases, the interest earned rise to 0.13% over a 1-year duration. The formula followed is that of Step-Up Interest.
- EZ-Link rebates: You get a cash rebate of 2% on all EZ-Link Reload Top-Ups – a minimum of S$30 each – done through the debit card or internet banking of this card.
- Cashback on purchases: Purchases made through this account will give you a 1% cash rebate.
- The interest rate of 0.13% with a minimum initial deposit of S$15,000 is not too attractive.
Maybank iSAVvy Savings Plus Account
This account gives you bonus interest on any balance above the pre-set daily average balance, and also allows you to create sub-accounts within your iSAVvy Plus account to build savings systematically.
Here are some reasons why this iSAVvy account is a great one to have:
- Higher interest rates: For this account, you get interest in the following tiers – 0.1875% p.a. for daily balance less than S$5,000, 0.3% for daily balance of S$5,000 to S$50,000, and 0.38% for daily balance of S$50,000 or more. In addition to this, you get a bonus interest of 1.56% every six months if your daily average balance is higher than what is specified.
- Sub-account creation: You can make up to 15 sub-accounts within your main account to help you create a systematic savings pool. Each account can be named as you want – for example “Honeymoon in Greece” or “Ferrari down-payment”. You can transfer funds within the sub-accounts without any hassle or extra charges.
- Free travel insurance: Up to 15th July, 2017, you can get free travel insurance if your average daily balance is a minimum of S$200,000. If your average daily balance is S$100,000 you are eligible for complimentary personal accident insurance.
The reasons why you may want to reconsider this account are:
- High average daily balance: You need to maintain an average daily balance of more than S$50,000 to get the highest interest rate available.
CIMB FastSaver Account
This is a no-frills account that doesn’t confuse you with various terms and conditions. CIMB promises you a nominal interest of 1% p.a. from the first dollar you deposit in the account.
Here’s why you should get this savings account:
- Higher interest earnings: You get an interest of 1% p.a. on the account by just maintaining a deposit of at least S$1,000. You can earn 1% interest on balance of up to S$50,000 and 0.6% on any amount above that with CIMB FastSaver Account.
- No strings attached: The account does not need you to follow convoluted terms and conditions to get a higher interest rate.
- No penalty: There is no Fall-Below Fee for this account, which means that even if your account balance goes below S$1,000, there will be no penalty charged to you.
Though the account has little going against it, you may want to consider this drawback:
- The highest interest you can earn is 1%, so if you have a large amount to deposit, you should consider the OCBC 360 or UOB One accounts that reward you for higher deposits as well as spends.
Review & Compare best savings accounts in Singapore
|Interest rate||Minimum deposit||Benefits|
|OCBC Frank Account||0.4% p.a.||NA||
• No minimum balance or initial deposit amount
• Promotional offers
• Cashback of up to S$60 on salary credits
• Customizable debit card
|POSB Save As You Serve Account||2.05% p.a.||NA||Pick a fixed monthly savings of S$50 to S$3,000 and earn higher interest on that amount|
|Citibank Tap and Save Account||0.13% p.a.||S$15,000||
• 2% cash rebate on EZ-Link Reload Top-Ups
• 1% cash rebate on purchases
|Maybank iSAVvy Savings Plus Account||1.56% p.a.||S$500||
• Creation of sub-accounts
• Free travel and personal accident insurance
|CIMB FastSaver Account||1% p.a.||S$1,000||No Fall-Below Fee|
How to choose the best savings account in Singapore?
Here are some questions you should ask yourself before deciding which savings account is the best for you:
- What is the minimum initial deposit and the minimum average daily deposit required? Would you be able to maintain that deposit?
- Have you compared the interest rates and other benefits between various banks and savings accounts? Does the account give you extra facilities in line with the competitive banking market?
- Are you sure you want to keep all your savings in a savings account instead of a bigger investment? The higher your savings, the more interest the accounts will give you, but if you have a lot of savings, you might as well put it to better use on an investment with a higher yield.
Other savings accounts you can consider are: