The investment information on this page is exclusively intended to educate and inform. Singsaver does not provide advisory or investment services, and does not recommend or advise investors to buy or sell specific stocks, securities, or other investment products.

Whether you are planning your first home purchase, thinking about retirement, or simply trying to get your finances sorted, understanding the difference between saving and investing is key. 

Saving is about preserving your money safely for short-term needs, while investing aims to grow your money over time with more risk involved. 

Both play crucial roles in financial health, especially in Singapore, where the high cost of living, CPF structure, and market volatility make smart financial planning essential. The right balance depends on your goals, timelines, and comfort with risk — and knowing when to do what can make all the difference.

• Saving is safer but earns lower returns; best for short-term needs.

• Investing carries risk but offers better growth; best for long-term goals.

• Build an emergency fund before investing.

• Balance your savings and investments based on your life stage and goals.

Sometimes, safety and liquidity should come first. Here are situations where saving takes priority:

• Emergency fund: If you do not have at least 3-6 months’ worth of living expenses saved, building this should be your first step. An emergency fund protects you from sudden job loss or other unexpected costs. Similarly, even with MediShield Life coverage, sudden medical bills can require quick access to cash savings.

• Short-term goals: If you are saving for a goal within the next five years — such as a wedding, a BTO flat downpayment, or a dream vacation — keeping your money in a savings account is safer than risking it in the market. Many couples combine their CPF Ordinary Account savings with cash savings to fund their BTO downpayment.

• Job instability: If you are freelancing, self-employed, or between jobs, prioritising liquidity is critical. Having accessible cash gives you financial breathing space without needing to sell investments at a loss.

» Earn interest on your savings with the best savings accounts in Singapore 2025

Not all savings accounts are created equal. Here’s what to look out for in Singapore:

• Insurance protection: Make sure the bank is SDIC-insured — deposits of up to $100,000 per depositor per bank are protected.

• High interest rates: Compare popular accounts like DBS Multiplier, OCBC 360, and UOB One to find the best rates based on your spending and salary crediting habits.

• No hidden fees: Check for fall-below fees and account maintenance fees that can quietly eat into your savings.

• Ease of access: Good mobile banking apps like DBS digibank and OCBC Digital app make managing your money convenient and efficient.

For peace of mind, remember that the Monetary Authority of Singapore (MAS) regulates banks locally, ensuring a strong and stable financial system.

» Find a savings account that suits your needs here

There comes a point when investing is not just optional — it becomes necessary for long-term growth. You should start investing when:

• Your emergency fund is in place: You have at least 3–6 months of expenses set aside in cash.

• High-interest debt is cleared: Before investing, make sure you have paid off credit cards and personal loans that charge high interest rates.

• You have long-term goals: Whether it is retiring comfortably, funding your child’s university education in 15–20 years, or achieving financial independence, investing helps your money grow faster than savings alone.

Think beyond CPF Life payouts when planning for retirement — starting early with investments can help bridge future income gaps. Likewise, university fees can rise sharply, making long-term investment planning crucial for parents.

» If you’re a cautious investor, you should look at these low-risk investments for your emergency funds

Choosing the right platform matters. Here’s what to consider when picking a brokerage in Singapore:

• Regulation: Ensure the brokerage is licensed and regulated by MAS.

• Low fees: Look carefully at trading fees. Brokers like Webull, Longbridge, Tiger Brokers, and moomoo offer competitive rates for different types of investors.

» Want to comparison shop? Check out the best brokerage accounts Singapore 2025

• User experience: Opt for user-friendly apps like Endowus or StashAway, especially if you prefer a more passive investing approach.

• Wide asset access: A good brokerage should let you easily invest in ETFs, Singapore-listed stocks, and US markets.

• First-timer promotions: Some platforms offer welcome bonuses such as fee waivers or cash credits — just be sure to read the fine print.

For beginners, robo-advisors can also be a low-stress way to get started, providing pre-built portfolios tailored to your goals and risk appetite.

» Grow your savings with a robo-advisor like the ones here