Local banks saving interest rate have reduce, nearing 0%. If one is to place a saving of $10,000, one only get to enjoy an interest of $12.50 after 1 year.
Following after many local and overseas banks, DBS and POSB bank also reduce the interest rate of the savings account starting 1st July.
For POSB saving account holder, the declared interest for the first $50,000 is now 0.125% compare to the previous 0.25% .
While DBS saving account ( Saving Plus ) holder, will enjoy an annual interest of only 0.1% for the first $50,000 savings.
So in another word, for every $10,000 in POSB and DBS bank, will only have an interest of $12.50.
Public shows great disappointments on our local bank reducing their interest rate. So in this depressed market, how are you going to find a safer and more reliable source to save your money and at the same time enjoy more interest?
Below will be a few tips you can consider...
- Changing to Fixed Deposit
Transfering funds from your normal savings account to a Fixed Deposit account and allow you to enjoy a better interest. Example, DBS Fixed Deposit rate saving ranging from $10,000 to $19,999 with a 12 month period every annum will be 0.45% ( Starting 1st July )
- Deposit into Overseas Bank
Even for Fixed Deposit, overseas bank also offer a higher interest. Example, RHB bank Fixed Deposit rate with a 12 month period every annum will be 0.75% ( Starting 1st July )
- Purchase a Saving Plan from Overseas Insurance Company
Purchasing a Saving Plan with a sum assured of at least $20,000, with a term of 5years, you can enjoy an interest of up to 5% to 8% per annum. Example like England Based company like PRUDENTIAL or AVIVA will be a good choice.
With their saving plans, Capital Guranteed features can also be enjoy.
- Putting your savings into Money Market Funds
Through some financial institution, putting your money into Money Market Funds can enjoy a better returns compared to current saving banks.
