Most people think bank accounts in Singapore are all the same, but not switching bank accounts might be causing you to lose out on attractive interest.
If you’re like most Singaporeans, you’re probably still using the same basic savings account you started when you were 5 years old. You know, the one with interest rates so low they’re virtually non-existent?
You probably also think there’s no point switching because aren’t savings account in Singapore “all the same”?
Actually, no they aren’t all the same. And, there are advantages to having 2 or even 3 bank accounts, such as:
- It’s easier to manage your finances. You have one account specially for GIRO and bill payments and another purely for savings. It’s hard to keep track of your savings when you constantly have debits within the month.
- It’s easier to save for different goals. By having separate bank accounts for each major goal (downpayment for your first home or car, further education, epic round-the-world tour, etc) you can more easily keep track of your progress.
- You can optimise your savings. You probably have a mix of long- and short-term goals you’re saving for. By choosing an account with a higher interest for your long-term savings, you’ll end up with even more money!
New Bank Products Pay Higher Interest
But, perhaps the most important reason it might be time for you to consider getting another bank account is this: Banks have been looking for ways to reward Singaporeans for saving, and there are many new savings accounts that give you interest you can actually see.
Take for example, the new UOB Stash account, which gives you up to 1% p.a. interest on your deposits, and you don’t even have to lock your money in for long periods of time. Also, there’s no penalty on withdrawals.
UOB Stash - Up to 1% per Annum
To reward you for saving more (and that’s how it should be!) the new UOB Stash account gives you more interest the more your deposit grows. Here’s how it works:
|Account balance||Base interest (p.a.)||Bonus interest (p.a.)||Total interest (p.a.)|
Once you save more than S$10,000 in your account, your interest earned spikes to 0.8% p.a.. And when you accrue more than S$50,000, your interest on the next S$50,000 is further increased to 1% p.a..
Save Progressively by Maintaining Your MAB
Some accounts provide bonus interest on the condition that you do not make any withdrawals. If you withdraw your money, you would not earn bonus interest for that month. Not so with the UOB Stash account - you’re free to withdraw the money you need, when you need it.
Simply ensure that your current Monthly Account Balance (MAB) is the same or higher than the previous month’s, and you will continue to earn bonus interest.
What, exactly, is MAB? Well, in simple terms, it’s the average balance of your account for the month. This is derived by adding up the end-day balance every day of the month, and then dividing that by the number of days in that month.
In short, you’ll earn bonus interest as long as you didn’t make a withdrawal, or deposited more money than you withdrew that month.
But don’t worry too much about it. You can always find out your MAB by logging in to UOB Mighty or Personal Internet Banking. You will also be informed how much you need to top-up (if at all) in order to earn bonus interest.
Who is UOB Stash For?
As you can probably imagine, UOB Stash is created for Singaporeans who are serious about saving money.
Whether you make small, steady deposits, periodically save large sums, or simply want to hold an amount for future use, UOB Stash will suit your needs, and reward you with high bonus interest.
Act Now for Even Higher Bonus Interest
If all these sounds like music to your ears, then you’ll want to sign up for an UOB Stash Account as soon as possible. The sooner you open your account, the sooner you’ll be earning higher interest of up to 1% per annum.
And if you know of friends, colleagues or family with similar needs and savings goals, tell them about UOB Stash. Once 6,000 or more applications have been reached, UOB will unlock a promotional rate of 1.2% per annum for November*.
What Are the Fees and Eligibility Requirements?
To open a UOB Stash account, you’ll need to be at least 15 years old, and make an initial deposit of S$1,000 minimum. There are no restrictions on nationality though - you can apply whether you’re a Singaporean, Permanent Resident or Foreigner.
If you’re a Singaporean or PR, don’t forget to use MyInfo to apply for your account without needing to upload any documents. It only takes 2 – 3 minutes!
As for fees, do note there is a fall-below fee of S$2 is applicable should your account balance drops lower than S$1,000 (waived till 31 Dec 2017). Should you decide to close your account within 6 months, you’ll be charged a S$30 early-closure fee.
*Terms and conditions apply. Find out more about UOB Stash Account today!
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By Alevin Chan
A Certified Financial Planner with a curiosity about what makes people tick, Alevin's mission is to help readers understand the psychology of money. He's also on an ongoing quest to optimize happiness and enjoyment in his life.