This article was written in collaboration with CIMB Bank Berhad. All views expressed in this article are the independent opinion of DollarsAndSense.sg based on our research. DollarsAndSense.sg is not liable for any financial losses that may arise from any transactions and readers are encouraged to do their own due diligence. You can view our full editorial policy here.
A common stereotype is that Asians are big savers. In Singapore, this is corroborated by data from the Department of Statistics on Household Balance Sheet, which shows that households keep over 35% of their financial assets in currency and deposits. This allocation is more than other asset types such as Central Provident Fund (CPF), shares and securities, unit trusts, and even life insurance.
Given that cash savings form the foundation of one’s financial assets, there’s more reason for you to optimise the returns on your savings accounts first before you look at other types of investments.
You May Already Have A Savings Account – Why Not Optimise It
In a highly banked society like Singapore, you are likely to have a savings account that is entrenched in your everyday life. It functions as an essential daily money management tool, enabling you to receive money and make payments digitally to others.
A savings account can also be used to safely keep and grow your long-term savings, such as for a home purchase, a child’s education, or even an overseas trip. Moreover, up to S$75,000 of your bank deposit is insured by the Singapore Deposit Insurance Corporation (SDIC), making it virtually risk-free to keep your money in a savings account.
In times of economic uncertainty and market panic, you can seek shelter from the high stock market volatility by putting your funds in a savings account. Such a facility not only gives you capital protection but also generates a decent return due to rising interest rates. On top of that, you retain full flexibility in the use of funds that can be accessed whenever you need them.
Compared to other types of investments, there’s no age barrier, nor do you need a large investment amount to open a savings account to generate an investment return, provided you choose the right savings account. In fact, even young children can open a junior savings account like the CIMB Junior Saver Account that gives a competitive interest rate, which might motivate them to save more.
There are many different types of savings accounts available today, including traditional savings accounts and high-yield savings accounts. To optimise the interest returns on your savings, you would need to choose a savings account that fits your needs.
Which Savings Account Should You Choose: Regular Savings Account Vs Multiplier Savings Account
A good savings account should be one that pays a competitive interest rate and requires no monthly maintenance fees or fall-below fees. Naturally, you would want to choose a higher interest-bearing account to earn more from your savings. This would be through a multiplier savings account or high-interest savings account.
A multiplier savings account may give you higher interest rates in the form of bonus interest on your savings, provided you meet a few criteria. This may include crediting your monthly salary; spending a minimum amount on your credit card each month; making an investment or buying an insurance plan; applying for a home loan; and using the bank’s products and services. This could be a useful type of savings account if you are already doing these things or have such expenses as part of your daily lifestyle.
Instead, if you prefer a simple, no-frills savings account that also pays an attractive interest rate, then the CIMB StarSaver (Savings) Account could be a good choice.
Earn Up to 3.50%1 Interest On Your Regular Saving Deposits With CIMB StarSaver (Savings) Account
You don’t have to switch to a multiplier account to earn a higher interest return on your savings and miss the opportunity to enjoy a higher interest if you are unable to fulfil the list of conditions. The CIMB StarSaver (Savings) Account allows you to enjoy as high as 3.50%1 interest p.a. on your deposits without having to jump through any hoops. Unlike most regular savings accounts, you are rewarded for saving more with the CIMB StarSaver (Savings) Account.
The table below illustrates the interest rates that you will receive for the different account balance tier.
^Interest accrued daily and credited monthly. Daily interest will be paid on the entire daily balance, provided that the balance is at least S$1,000 in your CIMB StarSaver (Savings) Account on any given day.
Source: CIMB – StarSaver (Savings) Account
There is no cap on the deposits that you can hold with the StarSaver Account. In fact, the more you have in savings, the higher the interest rates you will earn.
Interest rates are accrued daily and credited monthly, provided you maintain a minimum deposit of at least S$1,000 in your account on any given day. This means it does not matter if you have to make frequent transactions with your savings account. There is also no fall-below fee or other account maintenance fees even if you do not maintain the minimum S$1,000 needed to earn the published interest rates.
The minimum age is 16 years old to open an individual StarSaver (Savings) account; A Joint (In-Trust) savings account (CIMB Junior Saver) is also available for those under 12. As a CIMB customer, you have wide access to your savings at over 6,000 CIMB ATMs regionally and at any PLUS ATMs globally.
Additionally, if you have more than S$250,000 in fresh deposits, you can take advantage of the current New-To-Preferred promotion – giving you up to S$12,4601 in welcome rewards. This includes an additional 1%1 bonus interest rate on your fresh deposits across 3 months and an acquisition gift.
For example, if you deposit S$250,000 in fresh funds, you can earn S$1,953 in interest for the first 3 months which is inclusive of the prevailing interest rates and a 1% bonus interest. On top of that, you will enjoy a S$388 cash gift, for a total welcome reward of S$2,341.
On the other hand, if you made a S$1 million deposit, your interest amount would be S$10,460 for 3 months and you would receive a S$2,000 cash gift for a total welcome reward of S$12,460.
*Inclusive of prevailing interest rates for CIMB StarSaver Account and bonus interest of 1.00% p.a. (exclusive to New-to-Bank CIMB Preferred Customers and New-to-Preferred Customers) across 3 months.
Source: CIMB Preferred Account
There’s even more reason for you to sign up for CIMB Preferred today. You can nominate up to 3 of your family members to share your CIMB Preferred privileges and benefits as long as they maintain a minimum Total Relationship Balance (TRB) of S$5,000 in their CIMB StarSaver Account.
This means they too will receive the same upfront preferential rates, dedicated relationship manager support, complimentary airport lounge access, and invitations to exclusive family and lifestyle events – as long as you qualify for it.
Open A CIMB StarSaver Savings Account Online Today!
You can open an account online through Myinfo, and fund your account by transferring a minimum of S$1,000 via FAST.
Take advantage of the current promotions and open a CIMB StarSaver Savings Account to optimise the earnings on your savings. While you’re at it, you can also extend the benefits you receive to your family members!
1 Terms and Conditions apply. Please refer to CIMB SG official website for more information.
This article was first published on 11 October 2022 and has been updated to reflect the latest figures.