You may be thinking: if you save enough cash, you should have enough for retirement right?
However, have you factored in inflation in your calculations?
By leaving your cash in a bank account, its value will slowly erode away due to inflation!
I used to think that by saving money, you should have enough to last you in the future. However, here’s what I believe you should be doing with your cash instead.
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.
This account is great if you want to cultivate a good saving habit. By crediting a certain sum of money each month, you may receive additional interest!
Here are some conditions to be met:
The amount you save each month ranges from $50-$3,000 (in multiples of $10)
A crediting date between the 1st -25th day of each month
A debiting account that the money will be deducted from
Here are the interest rates based on the monthly contribution you make:
Monthly Contribution
Interest Rate
$50 – $290
0.05%
$300 – $790
0.2%
$800 – $1,490
0.25%
$1,500 – $3,000
0.25%
Other scenarios
0.05%
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 eMySavings Account’s interest rate really pales in comparison compared to these other accounts.
What are the requirements for this account?
Here are some of the requirements for this account:
#1 No initial deposit
The eMySavings Account does not require you to make an initial deposit. You can apply to create this account online via digibank and it’ll be created immediately!
#2 You need to be at least 16 years old with a DBS or POSB account
The minimum age of 16 years old is lower compared to some savings accounts. Moreover, you will need to have another DBS or POSB account.
This account will be your debiting account where your monthly contributions come from.
#3 No minimum balance and fall below fee
There is no minimum balance you are required to maintain for the eMySavings Account.
As such, you will not incur a fall below fee as well.
With such few requirements, you can consider the eMySavings account if you want an account without a fall below fee.
However, you will be penalised if you make a withdrawal!
Verdict
Here are the pros and cons of this savings account.
Pros
Cons
No initial deposit
Monthly contributions of $50 – $3000 to earn bonus interest
No minimum balance and fall below fee
Bonus interest will be penalised if you make any withdrawals
Monthly contributions force you to save
Interest rates are not that attractive
Besides the no initial deposit and minimum balance, there isn’t anything really enticing about this savings account.
Conclusion
The eMySavings Account is something you can consider if you are looking for an account without a fall below fee. Moreover, it is a great account to force you to save if you have trouble doing so.
However, the low interest rate and the penalty for withdrawing money makes it really unattractive.
Do you like the contenton this blog?
To receive the latest updates from my blog and personal finance in general, you can follow me on my Telegram channels (Personal Finance or Crypto) and Facebook.
Are you passionate about personal finance and want to earn some flexible income?