As of 1 January 2021, Standard Chartered has revised the interest rates for their JumpStart savings account to 0.4% pa. In this low interest rate environment, it is unsurprising that Standard Chartered has revised its rates (the rates for Bonus$aver account were revised on 1 October 2020).
With two substantial interest rate cuts in 2020 alone, you may be wondering if the JumpStart savings account is worth the while.
Standard Chartered JumpStart Interest Rate Revised To 0.4%
At the start of 2020, the Standard Chartered (StanChart) JumpStart account was easily one of the best high interest rate savings account at 2% p.a. and no hurdles to clear to receive said interest rate. Unlike most other high interest savings account that require salary credit, credit card spend, insurance or investment, StanChart JumpStart gives you the advertised interest rate directly on your first $20,000 account balance.
|JumpStart Interest rate||Before 1 July 2020||1 July 2020||1 January 2021|
|Any balance above $20,000||0.10%||0.10%||0.10%|
However, the eye-catching 2% interest rate has been nerfed, dropping to 1% on 1 July 2020 and again on 1 January 2021 to 0.4%. That said, for a hassle-free savings account, 0.4% is not something to be scoffed at. The JumpStart’s 0.4% is still higher than the 0.3% offered by CIMB FastSaver (with effect from 15 January 2021) which was one of our recommended best savings accounts if you don’t want to keep jumping through hoops.
Standard Chartered JumpStart Is Only For Young Adults
Not only does the JumpStart account have a relatively high base interest rate (0.4% p.a.) that requires no special spending or salary credit, it has no fees and no minimum balance. This makes it the perfect set-and-forget savings account.
Additionally, you receive 1% cashback on all eligible transactions on your JumpStart debit card, capped at $60 per month. All these features make the JumpStart account a versatile and fuss-free savings account for their intended target group.
There is only one condition of the JumpStart: you must be between 18 and 26 years old at the time of application. This restricts JumpStart to the domain of students, fresh graduates and young (working) adults). This is one key reason why the JumpStart account was not featured in our roundup of best savings accounts if you don’t want to keep jumping through hoops.
Should You Open And Keep Your JumpStart Account Before You Turn 27?
The interesting fact about the JumpStart account is that even though you can only open the account between the ages of 18 and 26, you can continue to keep the account after the age of 26. You can retain the JumpStart account and you will continue to receive the same base interest rate as other JumpStart account holders. Even at 0.4%, the JumpStart is still a strong contender for the best fuss-free savings account, if not for its age requirement.
With this in mind, if you are currently eligible to open a JumpStart account, you may want to consider doing so. There is little to lose for opening this account as there are no fees and no minimum balance. This means you can choose to leave this account empty or leave very minimal funds in here and it will still be there for you when you need it. However, there is the potential for an upward revision of the base interest rate when interest rates rise in the future (when you are possibly past the age requirements to open this account).
By opening the account now, your future self may thank you for your foresight in retaining a fuss-free high interest savings account.
However, if you are looking for somewhere to park your savings without jumping through all the hoops and still earn a higher interest rate, there are alternatives besides savings accounts. Insurance savings plans, like the Singlife Account, or cash management accounts, such as Endowus Cash Smart and Stashaway Simple, all offer better return rates than most savings accounts and are worth your consideration.