You may be looking for a savings account to put your money in. You may also have a problem with maintaining a savings habit!
Here’s how the DBS POSB eMySavings Account may help you.
eMySavings Account Review
The eMySavings Account is a good way to develop a savings habit as you are required to make a monthly contribution. However, the interest rate is quite low and you will be penalised for making any withdrawals.
Here is an in-depth review of the eMySavings Account.
What is the eMySavings Account?
The eMySavings Account is offered by both DBS and POSB. It is an account that rewards you with bonus interest if you make a monthly contribution.
Here are the interest rates based on the monthly contribution you make:
$50 – $290
$300 – $790
$800 – $1,490
$1,500 – $3,000
To earn a 0.25% interest rate on your savings, you are required to contribute at least $800 a month.
You may only earn a 0.05% interest rate if you meet these conditions
Here are the 3 conditions that will cause you to only earn 0.05%:
Failed crediting of monthly contribution
Withdrawal from the bank account
Account closure during the month
A failed crediting will usually occur if you do not have enough funds in your debiting account. As such, don’t forget to ensure you have the required funds in your account at least one day before the deduction!
The good thing is that you will only forfeit the bonus interest for that particular month. You are still able to enjoy the bonus interest for the other months.
Withdrawing your money will forfeit your interest
If you make any withdrawals from this account, you will only earn a 0.05% interest.
I believe that this is not a good place to store your emergency funds. If you need to withdraw money for an emergency, your bonus interest will be lost!
The amounts that you put in will be covered up to $100k.
Interest / Return Rate
Both of these accounts have a tiered interest or return rate. The interest or return rate that you earn is based on the amount that you have in the account.
Here are the rates that these 2 accounts offer:
0.3% (First $50k)
1.5% for first $10k
0.5% (Next $25k)
1% (Next $90k)
0.75% (Next $25k)
0% (If above $100k)
0.3% (Above $30k)
You are able to earn an extra 0.5% on your first $10k in the SingLife Account. This will allow you to receive 2% for your first $10k! However, you will need to participate in SingLife’s Save, Spend and Earn Campaign.
The SingLife Account has a much higher return rate than the CIMB FastSaver!
Here is the minimum age you’ll need to open these 2 accounts:
You are able to open your FastSaver account at a younger age compared to the SingLife Account.
However, FastSaver does not really provide an attractive interest rate. The Vivid Savings Account or GIGANTIQ (an insurance savings plan) provides higher interest rates when you’re 16!
FastSaver gives you the option of creating a joint account.
However, this option is not available for the SingLife Account.
CIMB FastSaver does not require an initial deposit to open the account. In contrast, the SingLife account requires you to put in an initial deposit of $500.
Even then, I still think that the initial deposit for the SingLife Account is not too high.
Minimum Account Balance
The CIMB FastSaver does not have any fall below fees.
However, it does have a minimum account balance of $1,000. If you fall below this amount, you will not earn any interest on your funds.
This requirement is more steep compared to other basic savings account like the the OCBC Monthly Savings Account. However, it does provide a much higher base interest rate.
The SingLife Account requires you to maintain a minimum balance of $100 in your account. If you fall below this amount, you do not need to pay a fall-below fee. Instead, you will just not be able to earn the return rate on your savings.
The $100 minimum balance is really low. As such, I believe that you most likely would not fall below this amount.
Even though you have the SingLife debit card, you are unable to use it to make any ATM withdrawals.
CIMB FastSaver allows you to perform ATM withdrawals. However, here are some things you’ll need to consider:
#1 You will be charged for these ATM card-related fees
You will be charged $10 for either:
Being issued an ATM card
Linking your FastSaver account to an existing ATM card
#2 There are only 2 CIMB branches where you can withdraw money from
CIMB only has 2 branches in Singapore.
Moreover, CIMB is neither a partner of the ATM5 network or SoCash. The ATMs you can withdraw money from will only be limited to these 2 branches.
As such, it can be rather inconvenient for you to find an ATM to withdraw from.
CIMB’s intention for FastSaver is to be a fully online account. As such, it is trying to discourage you from making in-person withdrawals. Instead, you can consider transferring your money via FAST to an account from another bank.
Here’s a summary of these 2 accounts:
Type of Account
Insurance Savings Plan
Interest / Return Rate
Minimum Account Balance
Speed of Withdrawal
Up to 3 hours
Based on this comparison, it seems that the SingLife Account is the superior account. With its much higher return rate and minimal requirements, it seems to be the better option.
The only major drawback is the speed of withdrawal. As such, it may not be that suitable for your emergency funds.
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