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Jul 31, 2008

How Safe Are Your Singapore Bank Savings?

How Safe Are Your Bank Savings?

How safe are your Singapore bank savings? Can You Lose All Your Money Kept In A Singapore Bank Savings Deposits Account?

With the recent closure of US banks Fannie Mae and Freddie Mac due to US home price declines and rising mortgage loan defaults, many US depositors faced prospects of losing money in their bank deposits savings accounts. Here in Singapore, can you lose all your money kept in a Singapore bank savings deposits? How safe are your bank savings?

Singapore Bank Savings Safe?
Can you lose all your bank savings? In theory, the answer is yes! You can lose all your bank savings and money kept in a Singapore bank savings deposits account if the bank that is keeping your savings account should ever go belly up AND the insurance agency that is supposed to protect your first $20000 also fails. This could arise from a nation wide collapse of entire financial system or if the Singapore dollar loses its value to zero or due to some other reasons, which we may not even envision as yet. In reality, this scenario is extremely unlikely.

Insurance For Singapore Bank Savings
Depositors who put money in bank savings are covered by insurance for the first $20000 in Singapore denominated dollars net of their liability. To illustrate: if you have 20K in Singapore fixed deposits and 20K in Singapore bank savings accounts with the same bank, you can only recover 20K of your money in the event of bank failure.

If you have $40000 in a bank savings accounts, but owe the bank $35000 for a car loan, you can only recover $5000 of your bank savings in the event of a total bank collapse.

Another problem with recovering your money in the bank savings after a bank has collapsed is the waiting time. Your bank savings compensation will not arrive any time soon until regulatory authorities sort out the mess with the affected bank and all other creditors. This may take weeks to months and maybe even years. In the meantime, you lose out on the potential interests earned and opportunity costs had you put that bank savings deposit in a more robust savings bank.

What if you split $40K between two different banks, like Bank A and Bank B? We believe the Deposits Insurance Act should cover your bank savings for $20K with EACH bank that gets into financial trouble. If two banks were to fail concurrently, we think that will be a sign of severe financial ill health.


Factors Affecting Safety of Bank Savings
We generally choose bank savings based on the interest rates offered by banks. But in considering the safety of your bank savings, other factors must come into the picture.

We need to consider other factors that will keep your bank savings safe. Is the bank well managed financially by capable leaders? Are the systems in the bank running efficiently? Are there adequate checks and balances? Is it well capitalized with enough assets to pay back customers their hard earned savings? Will it be able to survive all sorts of worldwide financial turmoil in today’s volatile markets? These are questions that users of bank savings like us must grapple with.

What Can You Do?
While the details on how to assess the robustness of banks is beyond our technical expertise, we feel that there are simple measures that bank savings users can adopt to minimize the risk of losing their bank savings. We have simplified the measures you can take to safeguard your bank savings into simple take home messages.

Simple Take Home Messages:
(on how NOT to lose your bank savings)

1. Save with banks that are covered under the Deposits Insurance Scheme (DIS) (http://www.sdic.org.sg/)


2. Save in Sing dollar savings accounts deposits, to qualify under the DIS.


3. Keep the maximum amount saved in each bank to about S$20K.


4. If you have more than S$20 K in bank savings, save the excess in another bank


5. Keep an eye on the financial health of your bank at all times.

Thank you for reading Singapore Savings Account Rates blog.

Related Article:
1. Deposit Insurance Scheme

Jul 24, 2008

Singapore Bank Savings Vs Singapore Fixed Deposits

Singapore Bank Savings Vs Singapore Fixed Deposits

Singapore bank savings vs Singapore fixed deposits: Which is a better bank deposits deal to park your money and earn interest? Is a Singapore bank savings account a better option or is a Singapore fixed deposits account better?

Understanding Yourself
To answer this question, you need to understand what you want to do with all the spare cash in your wallet or purse. You need to decide what you want to do with the unspent money you receive as salary before you deploy your funds in a bank savings or fixed deposits account.

What is the purpose for this spare sum of money? Is it to

(1) Store it in a safe place
If you just need a place that is safer than under your pillow to store your spare cash, a bank savings account would be ideal because such a bank savings account can accept small sums of money for deposit, and can be withdrawn anytime for use. You still earn daily interest on the amount in your Singapore bank savings before it is withdrawn.

(2) Earn interest
If you want to earn higher Singapore bank savings interest on your Singapore deposits, choose the investment that can offer you the highest interest rates. Depending on the interest rates quoted by the various banks in Singapore, you can choose to park your savings in a Singapore bank savings account or a Singapore fixed deposits account as long as the interest rate appeals to your needs.

(3) Hold it for impending use
If you know the specific length of time when you need to take out your cash for other uses, choose the appropriate Singapore fixed deposits package that fits your requirement. If you do not know the actual date that you need to use this sum of money, than a Singapore bank savings account may be a better option.

Other considerations to think carefully about are listed below.

(1) Set up & maintenance costs
Account opening usually requires a minimum sum for Singapore fixed deposits or Singapore bank savings, although some savings accounts can often be opened with as little as S$1. There may be monthly service and other charges on sums that fall below a certain level for certain banks. Check out the details before you commit to a bank.

(2) Penalty charges
Singapore fixed deposits accounts often carry a penalty charge for premature withdrawal of your principal. This can potentially wipe out the extra interest earned in your Singapore fixed deposits, making the Singapore savings account a better choice as it does not impose any charges for early withdrawal.

(3) Administrative and other costs
You need to consider the time taken for queues, paper work, transport costs and other opportunity costs when you go down to a bank branch to open or close your savings and deposits account. Once opened, you can link your savings account to a current account, to ATM services and other Internet banking transactions to save you from more such hassles.

Recommendation
All things being equal, in practice, we would recommend that you credit your salary directly into a Singapore bank savings account immediately on payday. Any extra sources of income, dividends, payouts and money from elsewhere should be credited into a bank savings account. This way, you will effectively start to earn more interest and earn more money while you deliberate on your next move.

Conclusion
In conclusion, whether a Singapore bank savings account is better or a Singapore fixed deposits account is better depends on numerous factors, which we have already elucidated in this Singapore Bank Savings Vs Singapore Fixed Deposits article. All you need to do now is to look at your own circumstances and examine your own objectives. Only then can you decide for yourself if a Singapore bank savings, a Singapore fixed deposits or maybe both is / are suitable for your banking needs.

By Singapore Savings Account Rates blog


We recommend these posts in Sg Savings Account Rates blog:

1. Latest Singapore Un-fixed Deposits Rates
2. Best Bank Savings Interest Rates

Jul 22, 2008

Latest Singapore Un-Fixed Deposits Rates

Latest Singapore Un-fixed Deposits Rates For 22 July 2008
22th July 2008

Summary: Bank savings deposits interest rates are unchanged from last week.

Thank you for visiting Singapore Savings Account Rates blog for the current latest Singapore un-fixed deposits rates.

Today on 22 July 2008 at Singapore Savings Account Rates blog, we present a summary of the current latest Singapore Un-fixed deposits interest rates for DBS, OCBC, UOB, Maybank, HSBC, HLF and Citibank:

Bank Deposits Interest Rates = DBS Autosave (Personal)

First $3000 0.25%
Next $47000 0.35%
Next $50000 0.45%
Above $100K 0.60%


Bank Deposits Interest Rates = OCBC Bank Savings (With Debit Card)

First $10000 0.25%
From $10001 to $50000 0.35%
From $500001 to $250000 0.40%
Above $250K 0.65%


Bank Deposits Interest Rates = UOB FlexiDeposit Account

First $15000 0.35%
Next $85000 0.45%
Next $200K 0.65%
Above $300K 0.75%


Bank Deposits Interest Rates = Maybank iSAVvy Account

Less than $5000 0.25%
$5000 to below $50000 0.88%
$50000 and more 1.18%
Interest-on-interest every 6 months * 6.0%
average balance at least $50000


Bank Deposits Interest Rates = HSBC Premier Account

First $4999.99 0.15%
From $5000 to $14999.99 0.2%
From $15000 to $49999.99 0.35%
From $50000 to $99999.99 0.6%
From $100,000 and more 0.85%


Bank Deposits Interest Rates = HLF (Hong Leong Finance) Savers Plus

$500 to $49999 0.25%
$50000 to $2 million 0.375%


Bank Deposits Interest Rates = Citibank Singapore

(only time deposit rates available)

Stay tuned as we shall update this list of current latest Singapore Un-fixed deposits rates for DBS, OCBC, UOB, Maybank, HSBC and HLF.

Tags: Current Latest Singapore Un-fixed deposits rates

Jul 15, 2008

Deposit Insurance For Your Bank Savings Deposits And Interests In Singapore

Deposit Insurance For Your Bank Savings Deposits And Interests In Singapore

In Singapore, the first $20,000 net of liabilities in your bank savings deposits of full banks or financial instituions are insured by the government under the Deposit Insurance Scheme.

Many people keep money in the savings account for daily living expenses — money to pay for groceries, school fees, utilities, phone bills et cetera, before the next pay cheque comes in. With effect from 1 April 2007, $20000 is now insured against the bank going belly up and losing your hard earned cash.

Only money deposited in Singapore dollars and maintained with branch offices of full banks and finance companies in Singapore are covered.

The effect of netting means that any loan owing to a failed bank or finance company by a customer is offset against the amount of deposits belonging to the same customer before deposit insurance is paid out.

As an example, assume you have $45,000 in your savings account and a $30,000 outstanding car loan with the same bank. Your net deposit with the bank after offsetting the loan amount is $15,000.This $15,000 net deposit is insured under deposit insurance.

Now, if you have $45,000 in your savings accounts and a $20,000 loan with the bank, the amount insured is capped at $20,000 although the deposit net of liability with the bank is $25,000.

Deposits are not insured separately in each branch office of a bank or finance company. This means that all your eligible accounts maintained with different branches of a bank or finance company are aggregated and insured up to $20,000 net of your liabilities to the same bank or finance company.

Money held in bank deposits under the CPF Investment Scheme are separately insured up to $20,000.

Only those in Singapore dollars placed in savings accounts, fixed deposits, current accounts and deposits under the CPF Investment Scheme are covered.

Foreign currency deposits, structured deposits and investment products like shares, unit trusts are excluded.

The Singapore Deposit Insurance Corporation (SDIC) administers the deposit insurance scheme in Singapore.

More information on deposit insurance and the SDIC can be found at the SDIC website.

Jul 14, 2008

Deposit Insurance Scheme, Singapore Launch

Deposit Insurance Scheme, Singapore Launch

Source: Monetary Authority Of Singapore

On 28 March 2006, the Monetary Authority of Singapore (MAS) and the Singapore Deposit Insurance Corporation (SDIC) announced that the deposit insurance scheme will commence on 1 April 2006. This follows the enactment of the Deposit Insurance Act in 2005.

2. From 1 April, the deposit insurance scheme will compensate individuals and charities for the first $20,000 of their Singapore dollar deposits in standard savings, current and fixed deposit accounts, net of liabilities, in the event that their bank or finance company fails.

3. The scheme compensates depositors through a fund built up from contributions by full banks and finance companies. Full banks and finance companies will pay their first premium contributions into the fund on 3 April 2006.

4. SDIC, a separate entity incorporated as a company limited by guarantee under the Companies Act, will administer the deposit insurance scheme and manage the deposit insurance fund.

5. SDIC Chief Executive Officer, Ooi Sin Teik, said: "The deposit insurance scheme is designed to safeguard the savings of small depositors. The scheme represents another layer of protection to complement the role of prudent bank management and MAS supervision."

"Although Singapore is well respected for the stability and robustness of its financial sector, experience elsewhere has shown that having an explicit guarantee in place will provide certainty and confidence to depositors."

Mr Ooi added that the SDIC is in the process of publishing a consumer guide on deposit insurance to be distributed through bank branches. It is also setting up a website to inform and educate the public on the scheme.

Jul 13, 2008

Current Highest Bank Deposits Interest Rates Remain Unchanged

Current Highest Bank Deposits Interest Rates Remain Unchanged July 12, 2008

12th July 2008

Summary: Bank savings deposits interest rates are unchanged from last week.

Thank you for visiting Singapore Savings Account Rates blog for the current highest Singapore bank deposits interest rates. Today on 7 July 2008 at Singapore Savings Account Rates blog, we present a summary of the current latest best and highest Singapore Bank deposits interest rates for DBS, OCBC, UOB, Maybank, HSBC, HLF and Citibank:


Bank Deposits Interest Rates = DBS Autosave (Personal)

First $3000 0.25%

Next $47000 0.35%

Next $50000 0.45%

Above $100K 0.60%


Bank Deposits Interest Rates = OCBC Bank Savings (With Debit Card)

First $10000 0.25%

From $10001 to $50000 0.35%

From $500001 to $250000 0.40%

Above $250K 0.65%


Bank Deposits Interest Rates = UOB FlexiDeposit Account

First $15000 0.35%

Next $85000 0.45%

Next $200K 0.65%

Above $300K 0.75%


Bank Deposits Interest Rates = Maybank iSAVvy Account

Less than $5000 0.25%

$5000 to below $50000 0.88%

$50000 and more 1.18%

Interest-on-interest every 6 months * 6.0%

average balance at least $50000


Bank Deposits Interest Rates = HSBC Premier Account

First $4999.99 0.15%

From $5000 to $14999.99 0.2%

From $15000 to $49999.99 0.35%

From $50000 to $99999.99 0.6%

From $100,000 and more 0.85%


Bank Deposits Interest Rates = HLF (Hong Leong Finance) Savers Plus

$500 to $49999 0.25%

$50000 to $2 million 0.375%


Bank Deposits Interest Rates = Citibank Singapore

(only time deposit rates available)

Stay tuned as we shall update this list of current highest Singapore Bank deposits interest rates for DBS, OCBC, UOB, Maybank, HSBC and HLF.

Tags: Current Highest Singapore Bank Deposits Interest Rates

Singapore Compound Interest Calculator

Singapore Compound Interest Calculator:

Using the Singapore Compound Interest Calculator To Compare Effect Of Compounding Interest Rates On Savings Amount

To help you achieve better returns on your savings deposits earning interest at a monthly or annual rates, we present an example to illustrate the effects. At the end we will point you to the Singapore Compound Interest Calculator.

Why is it important to get the best savings deposit interest rates for your savings account? The main financial reason is to maximize your interest earning via higher interest rates. This search for the best savings deposit interest rates will help you make more money at a faster rate for you.

The effect of compounding increases your savings deposit amount exponentially. If you maintain the principal amount with the earned interests in your savings deposit account, the total amount will snowball faster than if you withdraw the interest every time it is paid into your savings account.

We present two hypothetical case scenarios to compare the effect of interest rate changes on the bank balance of savings accounts.


Scenario : A vs B

Amount : $ 1000 $ 1000

Interest Rate : 0.25 % 1.08 %

Time Period : 50 yrs 50 yrs




Results :

End 1st Year : $ 1,002.50 $ 1,010.80

End 5th Year : $ 1,012.56 $ 1,055.18

End 10th Year : $ 1,025.28 $ 1,113.40

End 15th Year : $ 1,038.16 $ 1,174.84

End 20th Year : $ 1,051.21 $ 1,239.67

End 25th Year : $ 1,064.41 $ 1,308.07

End 30th Year : $ 1,077.78 $ 1,380.25

End 35th Year : $ 1,091.32 $ 1,456.41

End 40th Year : $ 1,105.03 $ 1,536.77

End 45th Year : $ 1,118.92 $ 1,621.57

End 50th Year : $ 1,132.97 $ 1,711.05



The major lesson learnt in this comparison is to choose a savings account that pays you higher interest rates as much as possible. Go ahead and look for the best savings deposit interest rates. Have fun making your savings grow faster for your financial health.

The link to the on-line savings interest rate calculator is at CPF.

http://www.cpf.gov.sg/cpf_info/calculator/Compound_Calc/comp_calc.asp

Jul 9, 2008

CPF Board Singapore: Current Interest Rates July 2008

CPF Board Singapore: Current Interest Rates July 2008

We checked the latest interest rates of the Central Provident Fund CPF Board for July 2008. The latest quote of CPF Board Singapore current interest rates July 2008 are here:

CPF Interest Rates (01 Jul 2008 to 30 Sep 2008)(reviewed quarterly)

  • Ordinary account 2.50% p.a.
  • Special, Medisave & Retirement accounts 4.00% p.a.


For CPF Board’s Ordinary Account (OA), interest rate is based on the 12-month fixed deposit and month-end savings rates of the major local banks.


Starting 1 January 2008, savings in the Special Account, Medisave Account and Retirement Account (SMRA) is pegged to the 12-month average yield of the 10-year Singapore Government Securities (10YSGS) plus 1%.


To help members adjust to the floating Special Account, Medisave Account and Retirement Account SMRA interest rate, a 4% floor for the SMRA rate will be maintained for the first two years (from 1 January 2008 to 31 December 2009).


Extra 1% of interest will be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the Ordinary Account OA.


The extra interest from the Ordinary Account OA will go into the member's Special or Retirement Account to improve his retirement savings.


Under the CPF Act, the Board pays a minimum interest of 2.50% per annum.
CPF interest is computed monthly and, compounded and credited annually.


Link to CPF Interest Rate File in PDF format:



Thank you for visiting Singapore Savings Account Rates for the latest savings deposits interest rates of banks and financial institutions of Singapore.

Tags: CPF, Central Provident Board, Current Interest Rates, Ordinary Account, Special Account, Medisave Account, Retirement Account.

Jul 8, 2008

Make Money With Best Bank Deposit Interest Rates


Make Money With Best Bank Deposit Interest Rates

If you are banking on a way to make money, the best and simplest way to make money is to choose the best bank with the highest un-fixed savings deposit interest rates in Singapore. Not-so-savvy investors who miss the woods for the trees often overlook this simple, easy yet logical method to make money.

With the hard earned money that you have made from your sweat and blood, do you put it in any bank un-fixed deposits savings account with average un-fixed bank deposit interest rates and then look out for investment opportunities elsewhere? Do you spend time and resources to check up on the best investments in the market to make money, only to see your cash earning miserable bank deposit interest rates while parked in a run-of-the-mill savings deposits account at the end of a week, a month, or even one or two years?

If you wish to keep your cash handy yet make money without locking into a fixed term like a fixed deposit account, a unit trust, a treasury bond or a Singapore blue-chip company, why not make more money by sourcing for the bank that will pay the highest bank deposit un-fixed interest rates for your hard earned cash savings in the meantime?

Average Singapore savings bank deposit interest rates now hover around 0.25% per annum on average in the last few years. We have found banks and financial institutions that can make money at 0.5% per annum or more interest rates on un-fixed sums as little as $5000 or less.

What this means is that by switching bank savings deposits account from one earning interest rates of 0.25% p.a. to another that earns 0.5% p.a. interest rates, you make money with a 100% ‘profit’ on your earned interest income. Add the effect of compounding and the gains would be even higher. If you have larger sums sitting in your bank savings deposits un-fixed account, you can potentially make more money and make more happiness with un-fixed bank deposits interest rates at 1.0% p.a. or even higher!

Choosing bank savings accounts for better interest rate payments to make money is a legitimate, safe and worry-free method: no worries about any lock-in period or fixed deposits tenures or fluctuating stock or property market conditions.

Here at Singapore Savings Account Rates blog, we provide you with simple un-fixed interest rates numbers. The latest and best bank deposits interest rates that we keep track will help you make money even as you hunt for better money making investments in the Singapore financial markets and around the world.
by Singapore Savings Account Rates

Jul 6, 2008

Latest Bank Savings Account Deposits Interest Rates July 7, 2008

Latest Bank Savings Account Deposits Interest Rates July 7, 2008

7th July 2008

Summary: No change to bank savings account deposits interest rates from last week.

Dear readers, thank you for visiting Singapore Savings Account Rates blog for the current, latest, best and highest Singapore bank deposits interest rates. Today on 7 July 2008 at Singapore Savings Account Rates blog, we present a summary of the current latest best and highest Singapore Bank deposits interest rates for DBS, OCBC, UOB, Maybank, HSBC, HLF and Citibank:

Bank = DBS Autosave (Personal)

First $3000 0.25%

Next $47000 0.35%

Next $50000 0.45%

Above $100K 0.60%



Bank = OCBC Bank Savings (With Debit Card)

First $10000 0.25%

From $10001 to $50000 0.35%

From $500001 to $250000 0.40%

Above $250K 0.65%



Bank = UOB FlexiDeposit Account

First $15000 0.35%

Next $85000 0.45%

Next $200K 0.65%

Above $300K 0.75%



Bank = Maybank iSAVvy Account

Less than $5000 0.25%

$5000 to below $50000 0.88%

$50000 and more 1.18%

Interest-on-interest every 6 months * 6.0%

average balance at least $50000



Bank = HSBC Premier Account

First $4999.99 0.15%

From $5000 to $14999.99 0.2%

From $15000 to $49999.99 0.35%

From $50000 to $99999.99 0.6%

From $100,000 and more 0.85%



Bank = HLF (Hong Leong Finance) Savers Plus

$500 to $49999 0.25%

$50000 to $2 million 0.375%


Bank = Citibank Singapore

(only time deposit rates available)


Stay tuned as we shall update this list of current latest best and highest Singapore Bank deposits interest rates for DBS, OCBC, UOB, Maybank, HSBC, HLF and Citibank:



Tags: Current, Latest, Best and Highest Singapore Bank Deposits Interest Rates

Jul 1, 2008

Current Latest Best and Highest Singapore Bank Deposits Interest Rates

July 2008 Current, Latest, Best and Highest Singapore Bank Deposits Interest Rates


1st July 2008


Dear readers, thank you for visiting Singapore Savings Account Rates blog for the current, latest, best and highest Singapore bank deposits interest rates. Today at Singapore Savings Account Rates blog, we present a summary of the current latest best and highest Singapore Bank deposits interest rates for DBS, OCBC, UOB, Maybank, HSBC, HLF and Citibank:


DBS Autosave (Personal)


First $3000 0.25%

Next $47000 0.35%

Next $50000 0.45%

Above $100K 0.60%


OCBC Bank Savings (With Debit Card)


First $10000 0.25%

From $10001 to $50000 0.35%

From $500001 to $250000 0.40%

Above $250K 0.65%


UOB FlexiDeposit Account


First $15000 0.35%

Next $85000 0.45%

Next $200K 0.65%

Above $300K 0.75%


Maybank iSAVvy Account


Less than $5000 0.25%

$5000 to below $50000 0.88%

$50000 and more 1.18%

Interest-on-interest every 6 months * 6.0%

  • average balance at least $50000


HSBC Premier Account


First $4999.99 0.15%

From $5000 to $14999.99 0.2%

From $15000 to $49999.99 0.35%

From $50000 to $99999.99 0.6%

From $100,000 and more 0.85%


HLF (Hong Leong Finance) Savers Plus


$500 to $49999 0.25%

$50000 to $2 million 0.375%



Citibank Singapore

(only time deposit rates available)


Stay tuned as we shall update this list of current latest best and highest Singapore Bank deposits interest rates for DBS, OCBC, UOB, Maybank, HSBC, HLF and Citibank:


Tags: Current, Latest, Best and Highest Singapore Bank Deposits Interest Rates

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