A savings account is one of the most basic form of bank accounts allowing you to store your money safely and earn interest on the account balance. There are different types of savings accounts with varying features and benefits allowing you to pick one that best suits your needs and requirements.
Savings Account Singapore
In Singapore today, everyone has the need to open bank accounts. There are multiple reasons for it such as your employers transferring your salary to a bank account, the need for you to withdraw money from your account conveniently through ATMs located strategically throughout the island, family and friends transferring money they owe you to your account and vice versa.
Now that the need to own a bank account has been established, you are now faced with wondering which type of account is best suited for your needs.
Types of Savings Account in Singapore:
There are three different types of Savings Account offered in Singapore which are as follows:
- A basic savings account – A basic savings account comparatively offers a low rate of interest on your account balance, but the interest offered is still higher when compared to a current account. This account also allows you with quick access to your money anytime you need it which is a huge advantage during emergencies where you can withdraw money or make payments conveniently.
- A certificate of deposit account – Also referred to as CD accounts/fixed deposits/term deposits. This type of savings account typically holds your money for a fixed period of time which can be between a few months and up to a few years. A CD account offers the highest interest rate (Annual Percentage Rate) when compared to other types of savings accounts. The longer the money is saved in this account, the higher the interest rate you will earn. However, what you must know about this type of an account is that the money you save in this account should not be used for emergencies or withdrawn before the maturity period because you will incur a penalty in such cases.
- A money market account – A money market account typically carries a minimum balance which is on the higher side but also yields a better rate of interest when compared to a basic savings account. The transactions you make with these accounts may be restricted to a certain number per month but this type of account usually comes with a debit card and checking facility.
Factors to consider with Savings Account:
There are a few factors that require due consideration when opening a savings account in Singapore. Find below the top factors to consider:
- Minimum balance requirement – Savings accounts that offer the best interest rates are also the ones with requirement of highest minimum balance per month. Therefore, do not just check the interest rate structure offered but also the minimum balance criterion before choosing the savings account. However, with research you may be able to find high yielding savings accounts with low or no minimum balance requirements. Also watch out for fees and charges for when the balance in your account falls below the minimum requirement.
- Initial deposit requirement – Some savings accounts require a specific amount to be paid upfront as the initial deposit amount for account opening. This amount is not the same as the minimum balance requirement amount. You may find savings accounts with no minimum balance requirements but you may have to make an initial deposit to open the account.
- Choose a savings account over a current account – When compared to any type of savings account, a current account yields lower interest and has strict guidelines when it comes to maintaining a minimum balance in the account. Additionally, the penalties also imposed when the minimum balance in not maintained in the account is also higher when compared to a savings account. Therefore, when you need to consider which type of account to open, savings account is a better option as you can use this account for the same functions and more with better yielding interest and leniency in maintaining minimum balance.
How to open a Savings Account?
There are multiple ways to apply for a savings account in Singapore:
- Online – You can apply for a savings account offered by your preferred bank in Singapore by visiting the bank’s official Singapore website and applying online. The online application form can be found on the savings account web page of the bank’s website along with the list of documents you need to submit. There are three ways to apply online:
- Apply online directly – When directly applying online, you will be required to fill in all the information and attach the requested documents and submit the completed application online. Here even new customers of the bank can apply online directly.
- Apply online through Internet Banking/Online Banking – Many leading banks in Singapore provide online banking services wherein customers of the bank can login to their online/internet banking account using their User ID and Password and apply for the respective savings account online. This option is not open to new customers of the bank.
- Download the online application form and submit it to the bank – Here, the application form will be available online wherein you will need to download this form, take a print out, complete the form by filling in the required details and then submit it to the bank along with the requested documents via mail, email or fax.
- Phone Banking – You can call the respective bank on their phone banking hotline number, often available 24 hours a day and request for further details on their savings account product or to start the application process for opening the savings account.
- Request for a callback – Many banks in Singapore now provide the option of calling you back wherein you can fill an online contact form with your preferred date and time for a callback and a representative from the bank will contact you regarding the same and take the application process further.
- Visit the bank - You can apply for a savings account from your preferred bank by visiting your nearest bank branch for the select bank along with the required documentation and apply for their savings account directly in person.