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Savings account is the most common deposit account available for consumers to deposit excess cash with banks or other financial institutions. It provides consumers the principal security and interest on the excess cash they deposit.
Savings account enables you to save your funds in a risk-free location and generate a modest amount of interest at the same time. These accounts generally require a minimum amount to open, it ranges from as little as S$10 to as high as S$1,000. However, there are some accounts don’t involve any minimum deposit amount too.
There are several types of savings accounts available in the market, which the three major ones are junior savings accounts, regular/basic savings accounts, and e-savings accounts.
- Junior Savings Accounts: These accounts are exclusively available for children or young adults under 18 years old. Parents or legal guardian will have to be the joint account holder for the case of the child is below 16 years old. These accounts usually generate higher interest compared to a regular savings account, ideal for parents who want to start teaching their children about savings.
- Regular/Basic Savings Accounts: These are the most common account that each individual will use. It provides basic facilities like ATM/debit card, passbook, and generates a modest interest. An individual has to be at least 18 years old to qualify for a savings account, with a minimum deposit amount required by the particular bank.
- eSavings Accounts: This is a relatively new savings product compared to the previous two. An eSavings account do not come with a passbook or paper statement. These accounts basically serves the same functions as a regular savings account but with a lower or even zero maintenance fee. It is particularly ideal for those who use internet banking to manage their day-to-day banking transaction.
Interest Rates of Savings Account in Singapore
Interest on savings accounts is usually compounded daily and will be paid monthly. The compounded interest rate is the rate the bank is paying based on your bank balance (including interest generated in the past). A compounding interest rate allows the principal amount to grow at a faster rate rather than simple interest, which is calculated as a percentage of the principal amount only.
The Advantages of a Savings Account
- Savings accounts encourage the habit of savings among fixed income earners
- It enables account holders to earn an interest on their income
- It provides availability of immediate cash funds through ATM facilities
- It provides facilities like internet banking and online transactions
- If it is your first bank account, a savings account also helps you establish a relationship with a bank and contributes positively to your credit rating
Savings Accounts and iMoney
iMoney compares almost every single savings account in Singapore in a plain simple table for your convenience. Review the latest interest rates and promotions available with each individual bank. Application with iMoney is simple and easy, and most importantly, this service is completely free!