Savings Account Optimization

 

Sing Investment's GO Saver has been buffed since 3rd September 2022 onwards(Which is yesterday). It is a mobile only savings account that is pretty hassle free. You can open the account instantly via the app with your Singpass. No initial deposit required, no early account closure fee, no hurdle just a very simplistic tiered interest rate system that credits every month. 

I downloaded the Sing Investment app and the application for their GO Saver is really instantaneous. You will need to wait one business day though before its truly ready for Fast transfer.

First $50,000 deposit gives you a 1.68% interest pa, next $150k gives a 1.88% pa, next $300k gives a 2% pa and anything above that gives a 2.5% pa. The effective interest rate for the first $500k is 1.932% pa.

The first $50,000 deposit that accrues a 1.68% pa beats Cimb Fastsaver $75k deposit with an EIR of 1.53%. Do note that both are savings account with no lock in period, ie liquid cash. So in terms of no frill savings account, Singlife 2%> SIF GO saver 1.68% > CIMB Fastsaver 1.53%  > all local banks as of now. 

The recent Trust and GSX digital savings account even if we were to factor in their max interest rate from hurdles like credit card spending or via GSX pockets, both still lose to SIF GO saver's 1.68% pa. However its good to open saving accounts of all digital banks available as I am sure more attractive rates will come by in the near future.

Do note that there is downside too for GO Saver. You can only Fast transfer $50k daily and there is a fall below fee of $2 if your daily average balance fall below $1k. The work around trick for this is to put in only $1.99 or below in the account at the start of the new month to avoid the $2 deduction.

As it is SDIC insured for up to $75k. If one were to use this savings account best to just max it at $75k if you want that extra security. This gives an EIR of 1.746% pa.

If you want to sacrifice liquidity for a higher interest rate comparable to SSB, you can take a look at UOB Fix Deposit, it has one of the highest rates now among all three local banks

2.6% pa for 12 months with a minimum of $20k. This means you can put in any amount above $20k. For this, you have to drop by a UOB branch to deposit. It is an easier way to lock in at the current rate rather than bidding for SSB every month. Do note than SSB is still superior though. It has a higher rate(September issue) and you can withdraw at any month and the rates will be prorated, which means better liquidity.

With the Feds increasing their rates by another 75 or 50 basis points soon, I am pretty sure that these Fix Deposit or SSB rates will ultimately be higher in the next 3-6 months time. So it will be ideal to stagger it gradually. See how it goes.