Compare and find the best Savings Account in Singapore
Looking for a savings account with the best interest rates? Aiming for the lowest minimum initial deposit and required monthly balance? How would you like the most seamless internet banking experience? Compare and find the best savings account that suits your needs.
Q: What is a bank account?
A bank account, like a savings account or current account, is where you keep most of your money. You can use it to hold your savings, withdraw cash easily via ATMs, write a cheque, pay your bills or purchase items.
Q: Who can open a bank account?
Anyone can open a bank account. If you are 16 years old or younger, you will be opening a kids account. Those above the above of 55 will be opening a senior account, Everyone else in between can open a savings or current account. However, do note that some banks won’t let you open an account until you’re 18, so be sure to check with the respective banks.
Q: What are the required documents to open a bank account?
- Singaporean/PR: Bring your NRIC along
- Foreigner: You’ll need a passport and proof of address as well as an Employment Pass, Dependent Pass, S Pass, Student Pass or LTVP if applicable.
Q: What should I consider before I open a bank account?
- Initial deposit
You might need to have a minimum amount to deposit before the bank will let you open your account.
- Minimum monthly balance
If you don’t want to pay the fall-below fee, you’ll need to have a certain amount of money in your account, averaged across the month.
- Fall-below fee
If you fall below the minimum monthly balance, you’ll pay between $2 to $5 every month till you meet the minimum monthly balance requirement.
- Early account closure fee
If you close your account within the first six months from its opening, this fee applies. Alternatively, keep your account open for six months to avoid this fee.
Q: What are the differences between a savings and current account?
Generally, savings account earns you interest while current accounts do not. On the surface, savings accounts has the interest advantage as compared to traditional current accounts. However, note that banks have progressively introduced bonus-tiered interest accounts which are current accounts too. Such current accounts might offer higher interest than your typical savings accounts. This however, depends on whether you meet the criteria, such as crediting your salary into the account and performing specific transactions, for the bonus interest.
Banks usually issue cheque books tied to your current account, which lets you withdraw up to your deposited amount in the account. This makes current accounts useful for business transactions with high transactional value.
Q: How is the interest on my savings account calculated?
Banks look at how much money you have in the account on any given day. The interest is calculated on a daily basis and applies to the amount of money and how long the money has been in your account. Banks pay your interest once a month.
For example, your bank gives you a 0.2% per annum interest for your first $10,000 and 0.3% for the next $40,000 in your savings account. From 1 Jan to 20 Jan, your account balance is $5,000 but on 21 Jan you made a deposit of $10,000. Thus, from 21 to 31 Jan, your account balance is $15,000.
Here are the calculations done by the bank:
1 - 20 Jan: (0.2% / 365) x 20 days x 5,000 = $0.55
21 - 31 Jan: (0.2% / 365 x 11 days x first 10,000) + (0.3% / 365 x 11 days x next 5,000) = $0.6 + $0.45
Total interest return for Jan = 0.55 + 0.6 + 0.45 = $1.60
Q: What is bonus interest?
Banks want you to do as much of your banking with them as possible, so they offer bonus interest to customers who withdraw less, save more, and have more banking products tied up with their bank.
Q: How does bonus interest work?
Banks have a set of criteria that you need to meet to get your bonus – it could be spending a certain amount on your credit card, or making certain payments from that account like bills or repaying your home loan. Or the bank might want you to hold investment products or insurance policies with them. As long as you meet the bank’s criteria, you’ll get the bonus interest on your entire balance each month (up to the bank’s account balance cap).
Q: How do I open a bank account?
- Online: If you have an existing relationship with the bank, just login to their online banking system and you can open a new bank account with just a few clicks.
- Branch: If you’re a Singaporean or PR, take your NRIC to the bank’s nearby branch. For foreigners, bring along your passport and proof of address as well as your Employment Pass, Dependent Pass, S Pass, Student Pass or LTVP.
Hot tip: For Singaporeans or PRs, you can store your relevant identity documents in your MyInfo account and login with your Singpass to easily open a bank without all the fuss of providing your documents in person.
Q: Can I convert my account into a joint account?
In most cases, yes. Visit a branch with the person you want to create the joint account with. They’ll need the same info and documents they’d need as though they were opening their own account. Bear in mind, some accounts can’t be converted into a joint account (for example, DBS Multiplier account) so you’ll have to check with your bank.
Q: How do I close my account?
You’ll need to visit a branch and bring proof of your identity such as your NRIC.
Q: Is my money protected if my bank fails?
Yes. Your money is protected if you bank with a member of the Singapore Deposit Insurance Corporation (SDIC) scheme. Under the insurance protection scheme, if your member bank or finance company fails, all of your eligible accounts with that member are combined and insured up to $50,000.