Saving in Singapore is tough nowadays. It doesn’t help that many banks offer savings account with so many conditions such as crediting salary and spending on a credit card just to hit that desired interest!
Not to worry! Today, I will be sharing with you two hassle-free savings accounts which are RHB High-Yield savings and CIMB FastSaver.
These two accounts are perfect for those who are just lazy and want to park their money without thinking too much!!!
RHB High-Yield Savings Account
Fees and eligibility of the RHB High-Yield Savings Account:
To be eligible to open the account, you will have to be 18 years of age.
- No Initial Deposit
- Monthly Minimum Average Account Balance of $500
- Fall Below Fee of $10
- Account Closure Fee of S$30 only if the account is closed within 6 months of opening
The RHB High-Yield Savings account helps Build your savings by earning higher interest rates. No lock-in period, you will have the flexibility to make deposits and withdrawals anytime throughout the year while earning high interests and reaching your financial goals.
How It Works?
According to the table above, any amount below $10,000 will get you 0.08% interest. Above $10,000 and you will get 1% interest.
For example, let us assume you deposit $100,000, first $9,999 X 0.08% = $8 (Round up to nearest dollar)
Next $90,001 X 1% = $900 (round up to nearest dollar)
Your total interest for that year is $908!!
Your effective interest rate will be $908/$100,000 = 0.908%
Honestly, having less than 1% of interest won’t be fantastic in my opinion as they are other ways to get higher interest like the OCBC 360 account or the DBS Multiplier account.
Even though it requires more conditions to fulfill but the interest is way better and easier to achieve.
HIGH-YIELD SAVINGS ACCOUNT CAMPAIGN 2019
RHB recently came out with this promotional campaign that allows customers to earn up to 2%p.a!!!!
This promotion is only Valid From 15 October 2019 to 30 June 2020
Who are eligible?
The RHB High-Yield Savings Account Campaign is open to all customers who open a new High-Yield Savings Account with RHB.
Customers who open an Eligible Account during the Campaign Period will get to enjoy the promotional interest rates offered by the Bank provided that they fulfill the following:
- The deposit must be made with fresh funds.
At least one of the following conditions must be met:
- If you are new to RHB and have 20k spare cash, you can qualify
- But if you are already an existing customer, all you need is to deposit $20K fresh funds which include the initial deposit of $1,000 to be eligible for the account.
Customers to take note of:
- A monthly fall below fee of $2.00 will be imposed should the monthly average daily balance fall below $1,000.
The interest rate for the Campaign
Let’s Assume you deposit $100,000, your first $50,000 will get 1.05% which is $525.
Your next $25,000 will get you 1.55% which is $387.50.
Your last $25,000 will get you 2.00% which is $500.
Therefore, your total interest amount per year is $525 + $387.50 + $500 = $1,412.50.
Your effective interest rate per year will be $1,412.50/$100,000 = 1.41%p.a.
After the Campaign Period, customers will enjoy the prevailing interest rate for the standard High Yield Savings account.
CIMB FastSaver Account
Fees and eligibility of the CIMB FastSaver Account
*Do take note that there are changes to the account closure fee from $30 to $50.*
To be eligible to open the account, you will have to be 16 years of age.
- Minimum Initial Deposit of $1,000
- No Fall Below Fee
- Early Account Closure Fee of S$50 only if the account is closed within 6 months of opening
The CIMB FastSaver Account offers a high base rate of 1.00% p.a. and up to 1.80% p.a. depending on your balances with no multiple conditions & no fall-below fees.
How Does it Work?
*CIMB has just updated their rates!!!*
With the reduction of interest rates! what does it mean for us?
To make it easier to understand, let’s assume you deposit $100,000.
Your First $50,000 will get you 0.50% which is $250.
Your Next $25,000 will get you 0.80% which is $200.
Your Last $25,000 will get you 1.50% which is $375.
Therefore, your total interest amount for that year will be $825.
Your effective interest rate for that year will be $825/$100,000 = 0.825%.
You might be wondering that the interest rates are kind of low right now! However, you have to take note that the rates are being reduced due to the effects of Covid-19 on our economy!!
Opening of account for CIMB FastSaver is easy
Application can be done using MyInfo.
Done mine in a quick 10min and below is a screenshot.
MORE: CIMB FastSaver Travel Draw Promotion
For those who are planning to open a CIMB FastSaver Account, You Are In Luck!!!
CIMB launched a Promotional campaign that allows you to have a chance to win a pair of Business Class Tickets and 5-star hotel accommodations to locations across the globe, whilst taking care of their leave allowance at the same time.
Well, it goes according to how many accounts have been opened so far!!! Take a look!!
- Select at least 4 out of the 6 continents provided by CIMB Bank
- Leave allowance of maximum S$20,000, capped at S$10,000 per person
- The maximum duration of 35 days in total
What!!! 100,000 is quite high!!!! Not to worry there is more!!
- Leave allowance of maximum S$5,000, capped at S$2,500 per person
Unfortunately, the cross out ones are over but that means that you are getting close to winning the ticket to Europe Or North/South America!!!
Is there any way to increase chances?
Yes, there is!! Look at the table below!!!
With this Promotion, it could be worthwhile if you have spare cash to open an account with them. I mean you just need to deposit $1,000 to qualify for the draw!!!!!
Both these accounts do not need salary crediting.
If you're looking for more ideas for bank accounts with high interest rates, we have articles
Well with the reduction of interest rate, RHB sounds pretty good right now!
But do take note that, RHB can also cut their interest rates soon as well!!
By then, it will be pretty hard to really determine which savings account is the best moving forward!!
Also do check our video on investment ideas with high dividends!
Last updated on June 24th, 2020 at 12:23 am