POSB Save As You Earn (SAYE) Review 2020: Breeze Your Way To 2% Interest On Your Hard Earned Savings

Marissa Saini

Marissa Saini

Last updated 29 October, 2020

Building your savings can be a chore if you’re using the wrong deposit scheme. With POSB SAYE, you can rest easy knowing there’s a ‘gift’ that rewards you for your patience.


Start saving like a pro with the POSB Save As Your Earn (SAYE) account – that is, if you’re an existing POSB/DBS member. Account holders can earn an additional interest rate of 2% in ‘cash gift interest’ when you link your savings account to the SAYE account. There’s only one catch: you can’t make any withdrawals for the first two years without forfeiting that sweet bonus interest.

Source: POSB 

How POSB SAYE works

You’ll be happy to know that this deposit scheme does most of the heavy lifting for you in order to fully enjoy the 2% p.a. interest on your monthly savings in addition to the 0.05% base rate. A fixed amount of money will need to be credited from your salary in your main account to this linked SAYE account at a fixed date every month. This amount ranges anywhere from $50 to $3,000. 


Pros Cons
Grow savings easily No withdrawals
Beginner friendly Fixed monthly deposits last two years
No minimum salary requirement Must deposit your salary in an DBS/POSB account


Why should you choose POSB SAYE?

#1: Accumulate savings (with interest) passively 

If you have the tendency to drain your salary in order to snag the latest must-have tech gadget, SAYE is the answer to your woes. The repercussions are enough to incentivise you to keep a wide berth between you and your savings. Any withdrawals made within the first two years would result in losing out on an otherwise achievable bonus interest rate. Cultivating healthy saving habits and building a rainy day fund all in one go – what’s not to love about that?

Source: POSB

#2: It’s easy to achieve the bonus interest rate

The beauty lies in its simplicity as there’s no bells and whistles to this savings plan. All you need to do is credit your salary into a DBS/POSB account, allocate a set amount to add to your savings and come back to it in two years. Even those with the tendency to touch their savings can’t deny that this is relatively temptation-proof. 

Based on the above illustration, monthly $100 contributions would accumulate to $50.06 in additional 2% p.a. interest after two years (not including base interest). Think of how much more you could collect in bonus interest if you allocate a higher amount per month.

#3: Set yourself up for success

Folks new to saving or are just starting out with their first jobs would appreciate the flexibility SAYE brings to its account holders. You’re allowed to decide on your savings contribution every month (from $50 to $3,000) as well as your desired day of the month (from 1st to 25th) when you want this amount to be credited. 

Unlike endowment plans, this allows you to easily tailor the plan to align with your financial needs, without having to worry about locking away a sizable chunk of your money that may restrict your everyday spending.

Eligibility criteria 

  • At least 16 years old
  • Must be an existing POSB/DBS account holder
  • No minimum salary requirement

How to apply?

You’d need these documents to open an SAYE account:

  • Singaporeans/Permanent Residents: Front and back of NRIC 
  • Latest copy of bank/credit card statement or utility/telecommunication bill

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Loyal DBS/POSB Customers: Which Credit Card Should You Add To Your Wallet?
POSB Everyday Card Review: Will This Be Your Favourite Card?

Your friendly neighbourhood cat enthusiast who enjoys not being broke. Spend less, save more is the name of the game. Firm believer that being financially savvy is not about the destination, but the friends you make along the way.


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