There are myriad bank accounts available on the market that cater to individual banking needs.
Savings accounts are simple banking accounts which allow you to deposit (put in) or withdraw (take out) money from it as needed. There is no limit to how much you can deposit, but you can only withdraw up to the amount you have in your account. Also, most savings account stipulate a minimum to be maintained, below which a small monthly fee (called a ‘fall-below fee’) will be charged. Any savings account that has a balance lesser than the fall-below fee is likely to be terminated by the bank. You can start comparing savings accounts in Singapore on SingSaver.com.sg now.
A fixed-deposit account is another type of bank account that is designed to encourage savings. These types of accounts help you to build up your savings by restricting you from making withdrawals within a stipulated time frame. In exchange, you will receive higher interest payments. If, however, you need to make a withdrawal, such as during an emergency, you may do so, but you will lose the accrued interest.
Another common type of bank account is a current account. Current (also known as ‘checking’) accounts are designed to facilitate the banking needs of businesses and individuals.
A current account usually comes with checking facilities, which mean you will be able to issue a cheque for payment using the funds in your checking account. Checking accounts also usually come with an overdraft facility - this allows you to withdraw more money than you have in your account. Be aware that there are fees and interest charges to be paid on an overdrawn account.
Besides these common types of bank accounts, there are many others which incorporate a mix of features. Some of these include multi-currency banking - which allows you to deposit and withdraw money in more than one currency; or bonus interest for higher deposit amounts.
Yes, there is.
Most banks and financial institutions require a minimum amount to be deposited for the creation of a bank account. The minimum deposit amount varies according to the type of bank account you are opening.
Savings accounts may require as little as S$1,000 to start a bank account. Fixed deposit and current accounts, however, may require a higher minimum deposit. In contrast, children’s bank accounts require only a small amount (or even none at all) to start.
In lieu of a minimum deposit, some banks may require salary crediting or other regular transactions.
For most banks in Singapore, individuals need to be at least 18 years old to start a bank account of their own. (There may be some cases in which you can transition from a children’s saving account to an adult one at the age of 16.)
To start a bank account, there are some documents you will be required to prepare. These may include official identification, as well as proof of residency lasting at least 3 months.
This is in addition to the minimum deposit amount required (see above).
Which bank account you should choose depends on your individual banking needs. For example, if you foresee yourself making multiple deposits and withdrawals within a short period of time, then a fixed deposit will not be the right type of account for you.
Conversely, if you have the ability to hold your money in your account for a long period, then you should pick a bank account that rewards you for doing so.
In any case, as bank account fees in Singapore are relatively low and affordable, you may consider having two or more different bank accounts to adequately cater to all your banking needs.
Bear in mind that some banks also provide bonus interest for their savings accounts, which may help you to meet your savings goals.
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