Saving money is the first step towards becoming financially responsible. It is the foundation that supports everything else we want to achieve financially, from having an emergency fund for unexpected expenses to setting aside capital for investments so that we can plan towards FIRE.
Without the discipline to save, even the best investment opportunities will remain out of reach.
However, saving money is not just about putting it aside.
The savings account(s) that hold our savings also play an essential role. Just as we would not keep wearing the same clothes we wore to school when we start working, our savings account should also change as we progress in life. What works well when we are just starting with a few hundred dollars may no longer fit our needs when our savings grow into the tens of thousands.
In this article, we explore the best savings accounts in Singapore for every stage of your financial journey, from your first dollar to your first $100,000, so that your money can continue to grow and keep up with your goals.
Read Also: Best Savings Account For Salary Crediting Only (For A Minimalist Banking Lifestyle)
Tier 1: Less Than $10,000
If your savings are below $10,000, there are usually two possible reasons.
The first possibility is that you are still a student and have not yet started earning an income. At this stage, your priority should be to build the habit of saving, rather than maximising interest rates through complex account conditions. Many high-yield savings accounts may claim to give high rates, but this usually requires you to jump through multiple hoops, which may be unrealistic if you do not yet have a regular income.
At this age, a simple and accessible option will be the DBS Multiplier. To earn an interest rate of 1.5% per annum (p.a.), all you need to do is make one Credit Card/PayLah! Retail Spend each month.
Do note this is only eligible for those who are 29 and below (sorry millennials)
The added advantage here is that since this account is with DBS, you can easily make cash withdrawal at an ATM from your account when required.
For those who do not require their account to have access to a physical ATM or bank branches, you can also consider the offerings of digital banks, such as the GSX Savings Account, which offers competitive interest rates (ranging from 1.08% to 1.18%) with minimal or no conditions.
Such accounts allow you to start earning returns on your savings immediately, without having to meet any criteria.
Tier 2: $10,001 to $50,000
Here’s where many working adults may fall.
Assuming you are working and have an annual income of at least $30,000, it makes sense to consider either the OCBC 360 Account or the UOB One Account. This is because both of these high-interest savings accounts benefit salaried employees who can credit their income and meet a $500 monthly credit card spend requirement (which is why a minimum annual income of $30,000 is required to qualify for the credit card).
For the OCBC 360 Account, simply by crediting your monthly salary and spending $500 on OCBC credit cards each month, you can already earn 1.6% p.a. If you grow your savings by at least $500 monthly, this goes up to 2.0% p.a.
For the UOB One Account, if you credit your monthly salary and spend at least $500 on an eligible UOB credit card, you earn 1.5%.
The DBS Multiplier, on the other hand, operates a little differently. Instead of requiring a specific salary amount, it considers your total eligible transactions, such as income crediting and card spend.. For individuals with total monthly transactions ranging from $500 to $15,000, the interest rate can reach 1.8% per annum.
This flexibility makes the DBS Multiplier more inclusive for those with lower or irregular incomes, such as freelancers or part-time workers, as it does not require a minimum salary credit.
Tier 3: $50,001 to $100,000
Once your savings reach between $50,001 and $100,000, this is the stage at which you need to start being more deliberate about where your money is invested. At this level, the difference between earning 0.5% and 3.0% interest can amount to several thousand dollars per year. The opportunity cost of leaving your savings in a low-interest account becomes much more significant.
High-interest accounts, such as the DBS Multiplier, OCBC 360, and UOB One, which we mentioned in tiers 1 and 2, remain excellent choices for this tier. Each of these accounts rewards users who can meet specific criteria, such as salary crediting and card spending.
At this point, you may want to expand your options to include the Standard Chartered Bonus$aver account. This is because if you have a salary credit of at least $3,000 and spend $1,000 or more on a Standard Chartered credit card, you can earn 3.05% interest. Assuming you have $100,000 in savings, this translates to $3,050 annually.
By the time your savings approach six figures, you are no longer just setting money aside; you are managing a growing asset.
At this point, the key is to stay proactive. Interest rates and account conditions change, and the best option today may not be the best one a year from now. Reviewing your savings strategy periodically (like how you would review your insurance policies) ensures that your money continues to grow at an optimal pace.
Ultimately, good saving habits are not just about discipline; they are about efficiency. Whether you are building your first $10,000 or fine-tuning your approach at $100,000, treating your savings like a portfolio to be managed, rather than a pile of idle cash, will help you move from saving out of necessity to saving with purpose.
Read Also: I Opened A Child’s Savings Account For My Daughter. Here’s Why We Decided To Do It “In Person”
Photo Credit: iStock/tang90246
