Have you heard of the 50/30/20 rule? It’s a powerful rule that recommends you to allocate 50% of your income to basic needs, 30% to your wants and desires, and 20% to savings. However, many people need help to divide their income accordingly. Here comes dtenAI, a one-stop solution to all your problems. We offer personalized recommendations, insights, and plans to help you build a secure financial future.

You may come across several saving plans in Singapore, but choosing the right one seems overwhelming. Before deciding, you must understand the benefits and features of a specific savings account. Whether you want to save to buy a car, plan for retirement, or grow your wealth, opting for the right strategy will cover all the aspects.

So, what are the criteria for selecting the best saving plan? Compare some basic features such as benefits, interest rates, accessibility, fees, and charges before proceeding with the final one. This article will compare top options to help you find the best one for better financial planning.

What is a savings account?

Before exploring the available options, it’s important to understand the different types of savings accounts. There are two primary categories of savings accounts you can open.

Savings account: A savings account is a basic and low-risk account where you deposit money, earn interest, and withdraw your funds anytime. This account is ideal for short-term goals and provides easy access to your money.
High-yield savings account: A high-yield account is a premium account offering higher interest rates than the standard savings account. You may require a higher minimum balance and fulfill certain conditions, but this is an ideal choice to maximize your savings for long-term goals.

Understanding the basics of a savings account will help you choose the one that suits your goals for a powerful financial journey.

5 Factors to Look for in a Savings Plan

When selecting a savings account for your income, you must consider multiple options. The primary and premium savings accounts are equally effective and profitable for specific needs, but only some options are equally created for both. You must understand the key factors to keep your finances on track and make the most out of your savings.

1. Interest Rates

One of the most important and primary factors of all the savings accounts is the interest rate, which means how much your savings will grow over time. Make your search, and select the plans offering competitive rates, significantly on the higher amounts.

2. Flexibility and Accessibility

Everyone wants flexible access to their funds. Choose the account that suits your financial habits. Some accounts may require you to maintain a minimum balance to withdraw the funds, or some may have certain withdrawal limits.

3. Additional Features

Look out for the additional features offered by many banks. These features enhance the value of your savings account and maximize your returns. Some added benefits may include insurance coverage, cashback on transactions, or loyalty rewards.

4. Fees

Be considerate about the fees associated with the accounts. You must pay maintenance fees, withdrawal charges, or other basic costs for your savings account. Some accounts may appeal to you with fancy interest rates, but hidden charges can affect your earnings.

5. Customer Support and Reputation

You should also consider the quality of customer support offered by the bank. Improved customer service can make your experience smoother. Check their online reviews, seek feedback from friends and family, and check the bank’s history.

We have helped you to look into all these factors to personalise the best account for you.

2 Things to Avoid when Choosing A Savings Account

Some features should be avoided while considering the major factors to assess before choosing the account. Stay aware of the maze of confusing features.

1. Only focusing on interest rate

Interest rates are the most critical factor in choosing a savings account. But don’t let the fancy interest rates divert you from other considerations. For example, you open a savings account with a higher interest rate for a minimum account balance, but for some reason, you fail to maintain the minimum balance. Eventually, you will be hit by an additional service fee for failing to meet the requirement.

2. Putting All your Money in a Single Account

Maximizing your return from a savings account is excellent, but only put some of your money in a single account. Consider your age and risk tolerance, and diversify your money in various investments. You can invest some of your money in the stock market or buy cash deposit certificates. Make strategic and wise decisions.

You can make informed decisions aligning with your financial goals by carefully investigating the key features and limitations. One account that suits someone else may not be the same for you, so choose according to your financial preferences.

7 Top Savings Plans in Singapore

Many banks in Singapore offer high interest rates. Here comes the question of which savings account is right to put your cash in for a desirable outcome. To save you from looking at the noticeable features of all the banks separately, we have shared a detailed comparison of the top banks in Singapore.

1. UOB One Account

UOB One account offers up to a 6.00% interest rate. The best part of UOB One Account is that you can earn the maximum EIR by fulfilling only 2 conditions. Here is the breakdown of the criteria to fulfill.

Earn upto 3% EIR for the first S$75,000 by crediting a minimum S$1600 salary and spending a minimum S$500 from the card.
Maximize the rate to 4% EIR with S$150,000.
Earn a 2% interest rate by opting for 3 GIRO debit transactions.
Maintain a minimum daily balance of S$1000 to stay within the fee.
The fall-below fee is S$5 and is waived for the first six months for an online account.

UOB One Account is ideal for those looking for easy-to-understand conditions for a secure financial future.

2. OCBC 360 Account

The maximum interest rate from an OCBC 360 Account is 7.65% p.a., close enough to the whooping 7.68% p.a. offered by Standard Chartered Bonus$aver Account. Here is the detailed breakdown of bonus interest rates:

Earn a maximum of 4.05% EIR with your salary and savings account.
Step further to maximize your earnings to 4.65% EIR for the first S$100,000 by fulfilling salary, savings, and spending requirements.
Gain 6.15% EIR annually with salary, saving, spending, and insuring/investing, as insuring with OCBC 360 Account offers +1.5% EIR.
Take your earnings to a maximum of 7.65% with salary, save, spend, insure, and invest.
The monthly fall-below fee is S$2 if you fail to maintain a minimum monthly balance of S$3000. The fall-below fee is waived for the first year.
Maintaining a daily average balance of S$200,000 will help you earn an additional 2.4% EIR.

Understand the criteria and strategically increase your savings.

3. Mari Savings Account

Mari Savings Account offers user-friendly savings options. The interest rate is low compared to other savings accounts, but users don’t have to fulfill additional criteria. Here is how it works.

Earn 2.70% EIR.
Interest is credited daily depending on the previous day’s balance.

Mari Savings Account doesn’t offer higher interest rates but offers simplicity. You don’t have to do and maintain fancy transactions to earn the rewards.

Are you already confused by which bank to choose for your savings? Check out dtenAI’s high-yield savings recommendation engine which does the heavylifting and helps you determine the exact amount you will earn from savings interest this year.

4. DBS Multiplier Account

With a DBS Multiplier Account, you can gain an interest of 1.5% p.a on your first S$50,000. The best feature of DBS Multiplier Account is that you dont have to credit your monthly income. Let’s explore its unique features.

Maximize your interest to 3.8% EIR on the first S$100,000, suited for customers who utilize various DBS services.
You must credit your income and spend across three categories to enhance the interest. Use a credit card, PayLah! retail spend, insurance, and investments to enjoy maximum rewards.
The minimum monthly balance should be S$3000.
The fall below fee is S$5, but it is waived if you are 29 or below or are a new DBS user.

DBS Multiplier Account is ideal for those below 29 years old and who want to avoid crediting their income every month.

5. GXS Bank Savings Pockets

If you are looking for easy transaction conditions without the tension of losing your interest, GXS Bank Savings Pockets is your ideal choice. It has a Main account and 8 savings pockets. You can allocate your pockets for several savings goals, such as education, loans, holidays, hospitals, and renovations.

Let’s discuss its unique features.

The main account offers an interest rate of 2.38% p.a.
Each savings pocket can earn you 2.68% p.a.
You can withdraw your money anytime without losing interest.
Interest is credited daily depending on the previous day’s balance.
There is no fall-below fee, which means you don’t have to maintain a daily balance.
You don’t have to make any transactions, buy insurance, or spend monthly on credit to earn rewards.
The bonus cap amount is S$75,000.

GXS Bank Savings Pockets is not ideal for those looking for higher interest rates but is suitable for those seeking to achieve short-term savings goals.

6. Standard Chartered Bonus$aver Account

Standard Chartered Bonus$aver Account offers an exciting interest rate up to 7.68% EIR on the first $100,000. Previously, they offered 7.88% p.a, but 7.68% p.a is still the highest.

Here are the best ways to earn a maximum interest rate while fulfilling the criteria.

You have to spend S$2000 on your credit/debit card.
You will earn an extra 2.00% p.a for crediting your salary of S$3000 or above.
Make three payment bills each month and earn an extra 0.23% p.a.
Investing and insuring with Standard Chartered will earn you 2.00% p.a each.
You have to pay a S$5 fall-below fee if you fail to maintain a daily balance of S$3000.
Earn 0.88% p.a. by spending $500 on your card and paying at least 3 bills.

Fulfill the above-mentioned criteria and earn the maximum with a Standard Chartered Bonus$aver Account.

7. Standard Chartered JumpStart Account

Standard Chartered JumpStart Account offers slightly lower interest rates but is ideal for young adults who want to store and earn from their funds.

Here is a brief breakdown of the potential features of the Standard Chartered JumpStart Account.

Earn a 2.00% p.a on your first S$50,000.
The interest drops to 0.10% p.a for a balance above S$50,000.
You can earn 1.00% cashback on Standard Chartered Master debit card transactions, with a S$60 monthly cap.
There is no fall below fee.
Invest in the bank’s investment products and earn 0.50% p.a.

JumpStart Account is ideal for individuals aged between 18 to 26 years old. There is no requirement to credit monthly salary, monthly spending, and daily balance requirements.

Understanding the basic features of the top banks in Singapore can help you make wise decisions. You can strategically improve your earnings through savings.

Conclusion

Your financial future can be significantly affected by the savings plan you choose. Each bank offers unique offers and specific benefits that fit your financial needs and align with your spending habits. Some offer high interest rates, while others appeal through flexibility and simplicity. Choose the one that fits well in your financial puzzle.

As you run through these options, remember the 50/30/20 rule — check us out to ensure that you are able to get the best savings plan for yourself today.

Choosing the Best Savings Plan in Singapore: Top Options Compared