6 best savings accounts in Singapore with no minimum balance, Money News

Banks like to put nasty conditions like high minimum balances and fall below fees on their accounts to force people to keep more money with them, and at the same time make a bit of cash out of errant customers.

In the past, we might have been willing to put up with these terms in exchange for high interest rates….

But now that most savings accounts interest rates have been nerfed, it might be time to look for savings accounts with no minimum balance — and thus maximum liquidity.

Savings account

Interest rate (p.a.)

Features

DBS Multiplier Account (up to age 29)

0.4 per cent to 3 per cent, depending on total transactions

Bonus interest based on salary credit & spending

Standard Chartered JumpStart Account (up to age 26)

No hoops to jump through to receive interest

CIMB FastSaver Account

0.3 per cent on first $75,000

No hoops to jump through to receive interest

OCBC Frank Account (up to age 26)

0.1 per cent on first $25,000; 0.2 per cent on next $25,000

Debit card gives 1per cent cashback at selected merchants

DBS My Account

0.05 per cent

Multi-currency

Standard Chartered SuperSalary Account

0.01 per cent base interest + 0.27 per cent bonus interest for first eight months

Bonus interest for new customers

If you’re in your twenties, lucky you! You have several options when it comes to savings accounts with no fall-below fees, as you’ll see below.

The most lenient one of all is the DBS Multiplier Account, which imposes no minimum balance up until you’re 29 years old. But once you hit the big 3-0, you have to maintain at least $3,000 in there or you’ll need to pay a hefty $5 service charge.

The DBS Multiplier Account, though nerfed, still pays out decent bonus interest as long as you’re willing to use it as your everyday account. You need to credit your salary, swipe a DBS credit card, and/or make Paylah! transactions to earn it.

The Standard Chartered JumpStart Account is open to young adults aged 18 to 26 only. If age is on your side, this account is a pretty good one as it gives you 0.4per cent p.a. on your account balance without needing any effort on your part.

This 0.4per cent is only for the first $20,000, but hey, if you’re young and broke, that’s a perfectly respectable amount of savings to have. After you turn 27, you can maintain this account but the interest will fall to “prevailing” rates.

The account also comes with a free debit card that gives you 1per cent cashback on all eligible spending.

I have a soft spot for Malaysian banks, as they tend to dangle very good interest rates in order to get customers to overlook their less glamorous image.

CIMB FastSaver Account doesn’t disappoint. The account offers a per annum interest rate of 0.3per cent on your first $75,000 and 0.15 per cent on amounts over $75,000. There’s no need to worry about earning bonus interest — and you don’t have to be in the flower of youth, either.

The main disadvantage is that you need to make an initial deposit of $1,000, and on days when your account balance falls under $1,000, you will not receive the interest for that day.

Otherwise, the account does not impose any fall below fees, so you can withdraw all the cash in your account without fear of getting charged.

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OCBC’s FRANK Account targets the young and presumably broke, which is probably why they’ve decided not to charge any fall-below fees… but only if you are up to age 26 years old.

Otherwise, for committing the crime of being old, you get charged $2 if your balance falls below $1,000.

On the bright side, the account’s interest rates are not that horrid compared to other savings accounts of this type. You get 0.1 per cent a year on your first $25,000 and $0.2 per cent on your next $25,000. Any amounts above $50,000 will earn 0.05 per cent.

Another perk is that the free debit card that comes with the account offers 1 per cent cashback when you shop at certain merchants including Grab, Comfort, CityCab, Go-Jek, TADA, Cheers, 7-Eleven and FairPrice Online.

DBS My Account functions not just as a regular savings account but also as a multi-currency wallet. It’s free to use and there’s no initial deposit required, although you have to pay $2 per month if you want to receive hardcopy statements.

In addition to SGD, you can stash 11 foreign currencies in your account including AUD, USD, Euro, HKD, Japanese Yen and Thai Baht. You can then shop online using your card without having to pay currency conversion fees.

Your savings in SGD earn 0.05 per cent while USD savings earn 0.03 per cent. All other currencies don’t earn any interest.

You can also exchange currencies 24/7 and, when overseas travel becomes possible again, pay using your card without incurring the currency conversion fees you’d pay when using a regular credit card.

This account can simplify your life if you’re using a separate account or travel wallet like Revolut for your foreign currencies and what to consolidate everything to one account. One key weakness, however, is that overseas ATM withdrawals cost $7.

Even with a salary that is far from super, it’s still easy to qualify for the Standard Chartered SuperSalary Account, since there is no minimum initial deposit and the minimum balance is a grand total of $0.

The account pays out a not-so-super base interest rate of 0.01 per cent. New customers can also earn bonus interest rate of 0.27 per cent during the first eight months after opening the account.

As there are no fall below fees, you can consider using the account for eight months to enjoy the 0.01 per cent base + bonus interest, and then traitorously switch to a different account after that. This is only worth it if you have quite a bit of cash on hand, though.

The account also entitles you to a Standard Chartered CashBack debit card, which lets you earn 1 per cent on eligible spending.

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This article was first published in MoneySmart.