Everyone needs to have bank accounts in Singapore. Your employers will pay you through these accounts, your friends will transfer money they owe you through these accounts and you can save money and withdraw money from these accounts at conveniently located ATM when you’re out.
There are a million reasons why every person in Singapore needs to have at least one bank account.
What this also means is that everyone should take some time to think about how they can best manage their accounts. It doesn’t need to take long or be difficult. You just need to read an article like this, and follow some of the tips that you agree would make your life easier and add value to you.
Here are some saving account hacks we think would be useful to manage your bank accounts in Singapore.
1. Take full advantage of the Singapore Deposit Insurance Scheme (SDIC)
The SDIC guarantees your deposits are insured up to $50,000 per bank per person. What this means is that even if you have five different accounts with the bank, you will only be insured up to $50,000.
On the other hand, if you have two separate accounts at two banks, you will be insured up to $50,000 per bank, or a total of $100,000.
The logic here is to spread your deposits over various banks if you have more than $50,000. This will allow you to enjoy maximum coverage should any adversity hit the banking sector.
2. Always put savings into an account paying good interest
You should always put your savings into accounts paying a good interest rate. Your money is going to sit idle anyway, so why not enjoy the best returns for it.
The OCBC 360 and the UOB One account both pay attractive interest rates of more than 2% per annum on your savings simply by completing some basic tasks. To be frank, it just doesn’t make any sense not to be enjoying this interest rates being given.
If you have the maximum sum the SDIC covers ($50,000) in one of these accounts, you can easily earn more than $1,000 per annum from these accounts.
The best part (which you may not know) is that both UOB and OCBC share ATM. So yes, you can withdraw money from your OCBC account using a UOB ATM and vice-versa.
3. Open a DBS account – without having to hold a minimum balance
The harsh reality is that even though OCBC and UOB offer superior interest rates on their accounts, we still think it makes sense to open a DBS account and have some money in there. This is because DBS ATMs are still the most prevalent in Singapore, and offers the most convenient way to withdraw money no matter where you are in Singapore.
One good thing is that the DBS Remix eSavings Plus account does not require you to keep any minimum balances. Not having to hold a minimum balance at this account means you can save the bulk of your money in savings accounts with the two other banks that are giving better interest rates. At the same time, you can also enjoy the convenience of DBS’s greater resources.
It is important to note that some of the savings accounts at DBS and other banks usually charge a $2 minimum balance fee once your account balance drops below a certain level. You should try to avoid this fee. Do note that this fee can also be charged on your next deposit, when you do make it in future.
4. Try not to hold a current account
There is a limited need for people to hold current accounts nowadays. Bills can be paid via many other avenues, and current accounts usually give little interest rates and have strict minimum balance guidelines. By not using current accounts, where you may incur more charges for the use of cheque books, you can put all your free money into savings accounts that give you the best interest rates.
5. Choose a bank with an extended hours outlet close to your home
The logic behind this is simple – you get to perform banking services after work and on weekends. The good thing is that many banks now designate certain outlets to have extended hours in the heartlands and you may already be living close to one such bank without even knowing. A simple search on the individual bank’s website will show you the outlet location and operating hours.
This is infinitely important when the situation arises that require you to go to the bank. Otherwise, you’d be fine most of the time with your trusty Internet banking token.
Even though virtually everyone has savings accounts, many of us do not properly manage these accounts to the fullest. By simply putting in just a little effort, most of us can enjoy higher interest while gaining superior convenience for our banking services.