If you’re looking to save money in Singapore, opening a POSB savings account is a great option. POSB, which stands for Post Office Savings Bank, is one of the largest banks in Singapore and offers a range of savings accounts to help you meet your financial goals. One of the key benefits of opening a POSB savings account is the interest rates that you can earn on your deposits.
POSB savings accounts offer competitive interest rates that can help you grow your savings over time. The interest rates vary depending on the type of account you choose and the amount you deposit. For example, the eMySavings Account and MySavings Account offer interest rates ranging from 0.05% to 0.25% per annum, depending on your monthly savings amount. Meanwhile, the Multiplier Account can offer interest rates of up to 4.1% per annum if you meet certain criteria. By choosing the right account and depositing your money wisely, you can maximise your savings and earn more interest over time.
If you’re looking to open a POSB savings account, it’s important to understand how interest rates work and how you can maximise your savings. In this article, we’ll take a closer look at the different types of POSB savings accounts and the interest rates they offer. We’ll also provide tips on how to choose the right account and how to manage your account effectively to get the most out of your savings.
Understanding POSB Savings Accounts
If you are looking for a reliable savings account in Singapore, POSB is a great option. POSB offers various types of savings accounts, each with its own features and benefits. In this section, we will discuss the different types of POSB savings accounts and their features.
Types of POSB Savings Accounts
POSB Passbook Savings Account
The POSB Passbook Savings Account is a basic savings account that allows you to earn interest on your savings. You can open this account with a minimum deposit of $500. This account comes with a passbook that you can use to keep track of your transactions.
POSB Everyday Savings Account
The POSB Everyday Savings Account is a convenient savings account that offers easy access to your money. You can open this account with a minimum deposit of $500. This account comes with a debit card that you can use to withdraw money from ATMs and make purchases.
POSB eSavings Account
The POSB eSavings Account is an online savings account that allows you to manage your savings from the comfort of your own home. You can open this account with a minimum deposit of $500. This account comes with internet banking access that you can use to check your balance and make transactions.
POSB Save-As-You-Earn Account
The POSB Save-As-You-Earn Account is a savings account that encourages you to save regularly. You can open this account with a minimum deposit of $50. This account offers a higher interest rate for higher monthly savings amounts.
POSB FDW Savings Account
The POSB FDW Savings Account is a savings account for foreign domestic workers in Singapore. You can open this account with a minimum deposit of $50. This account offers a higher interest rate for higher monthly savings amounts.
POSB Smiley Child Development Account (CDA)
The POSB Smiley Child Development Account (CDA) is a savings account for parents with young children. You can open this account with a minimum deposit of $1. This account offers a higher interest rate for higher deposits.
Corporate Current Account
The Corporate Current Account is a savings account for businesses in Singapore. You can open this account with a minimum deposit of $1,000. This account offers a higher interest rate for higher deposits.
POSB Savings Account Features
All POSB savings accounts come with the following features:
- No fall-below fees
- No monthly account fees
- Interest on your savings
- 24/7 access to your account via internet banking
- Easy account opening process
In conclusion, POSB savings accounts offer a range of options to suit different needs. Whether you are looking for a basic savings account or a more specialized account, POSB has something for you. With no monthly account fees and easy account opening, POSB is a great choice for anyone looking to save their money.
Interest Rates and How They Work
If you’re considering opening a POSB savings account, it’s important to understand how the interest rates work. Here’s what you need to know:
Base and Bonus Interest Rates
POSB offers a base interest rate and a bonus interest rate for certain accounts. For example, with the POSB Save As You Earn (SAYE) account, you earn a base interest rate that is tiered based on your monthly savings amount. If you make no withdrawals or failed deductions for the month, you’ll also earn a bonus interest rate of 3.5% per annum.
Interest Rate Calculation
The interest rate on your POSB savings account is calculated based on the deposit amount, rates (% p.a.), and the total monthly savings. For example, if you have a monthly savings amount of $500, you’ll earn a base interest rate of 0.2% per annum. If you make no withdrawals or failed deductions for the month, you’ll also earn a bonus interest rate of 3.5% per annum. This means your total interest rate for that month would be 3.7% per annum.
To calculate the interest rate on your POSB savings account, you can use a calculator or refer to the bank’s website for the latest rates. Keep in mind that interest rates can change over time, so it’s important to stay informed and adjust your savings strategy accordingly.
Overall, POSB savings accounts offer competitive interest rates that can help you grow your savings over time. Whether you choose the SAYE account or the Multiplier account, be sure to read the terms and conditions carefully and choose the account that best fits your needs and financial goals.
Maximising Your Savings
If you’re looking to maximise your savings with POSB, there are a few strategies you can employ. Here are two options that may be worth considering:
Monthly Savings Plans
One way to build your savings with POSB is through a monthly savings plan. With options like the POSB Save As You Earn (SAYE) account, you can set aside a fixed amount each month and earn interest on your savings. The interest rates vary depending on the amount you save, but you can earn up to 0.25% p.a. with the SAYE account.
Another option is the POSB eMySavings account, which offers a competitive interest rate of up to 0.6% p.a. on your savings. This account is designed for regular savers who want to build their savings over time.
Leveraging Multiplier Accounts
Another way to maximise your savings is to leverage POSB’s Multiplier Account. This account allows you to earn bonus interest on your savings by fulfilling certain criteria, such as credit card spend, home loan, insurance, investments, GIRO and PayNow transactions.
For example, if you credit your salary to a POSB Payroll account and spend at least $500 on your POSB/DBS credit card each month, you can earn up to 1.85% p.a. on your savings with the Multiplier Account. If you’re under 29 years old, you can earn up to 2.8% p.a. on the first $50,000 of your account balance.
To make the most of the Multiplier Account, it’s important to understand the terms and conditions and the different categories of transactions that are eligible for bonus interest. With a little bit of planning, you can earn higher interest rates on your savings and achieve your financial goals faster.
Overall, by taking advantage of POSB’s savings accounts and leveraging their Multiplier Account, you can maximise your savings and achieve your financial goals faster.
Additional Benefits and Rewards
When it comes to banking, getting the best interest rate is just one piece of the puzzle. POSB offers a range of additional benefits and rewards that make it a great choice for your savings needs.
Cash Gifts and Promotions
One of the most exciting perks of a POSB savings account is the cash gifts and promotions that are regularly offered. For example, you may be eligible for a cash gift when you open a new account or when you deposit a certain amount of money. These promotions can be a great way to boost your savings and reach your financial goals faster.
POSB SAYE Account Perks
If you’re looking for a savings account that offers additional perks, the POSB Save As You Earn (SAYE) account is worth considering. With this account, you can enjoy a higher interest rate on your savings, as well as other benefits like EMSA rewards and EMSA home insurance.
EMSA rewards are cash rebates that you can earn when you use your POSB debit card for everyday purchases. These rebates can add up quickly and help you save even more money over time. EMSA home insurance, on the other hand, offers protection for your home and its contents, giving you peace of mind and financial security.
Whether you’re looking for a savings account for your children (such as the POSBkids account), or you’re an expatriate looking for the best possible interest rate (such as with eAutoSave Plus or expatriate eAutoSave Plus), POSB has a range of options to suit your needs. With competitive interest rates, generous cash gifts and promotions, and a range of additional benefits and rewards, it’s no wonder that POSB is one of the most popular banks in Singapore.
Important Terms and Account Management
Understanding the Fine Print
When opening a POSB savings account, it is important to understand the terms and conditions. The interest rates for S$ deposit accounts are subject to change, so it is crucial to stay updated on the latest rates. For example, the POSB eSavings account offers a base interest rate of 0.05% p.a. with a maximum interest rate of 0.1% p.a. for a minimum balance of S$500.
It is also important to note that failed crediting of monthly savings amount, withdrawals made, or account closure during the month may result in a lower interest rate. For instance, the POSB SAYE savings account offers an interest rate of 3.5% p.a. on monthly savings for a period of 24 months, but any missed payments or early withdrawals may result in a lower interest rate.
Managing Your Account Online
Managing your POSB savings account online is easy and convenient. You can access your account information, check your balance, and make transactions at any time. Simply log in to your account using your iBanking credentials or the POSB mobile app to view your account details.
If you are a first jobber or a Singaporean aged 16 to 30, you may be eligible for the DBS Remix eSavings Plus account, which offers a higher interest rate of up to 2.8% p.a. for the first S$20,000 deposited. You can also earn bonus interest by linking your account to a DBS/POSB credit card and meeting certain spending requirements.
Overall, managing your POSB savings account is easy and straightforward. By understanding the terms and conditions and taking advantage of online banking features, you can make the most of your savings and earn higher interest rates.
Frequently Asked Questions
How can you calculate the interest on your POSB savings account?
Calculating the interest on your POSB savings account is simple. The interest rate is based on the amount you have saved and the type of account you have. You can use POSB’s online calculators to estimate your savings and interest earnings.
What are the latest interest rates for POSB Passbook Savings Accounts?
The latest interest rates for POSB Passbook Savings Accounts are 0.05% p.a. for balances below S$10,000 and 0.1% p.a. for balances of S$10,000 and above.
How does the POSB Multiplier account boost your savings interest?
The POSB Multiplier account is a unique savings account that rewards you with higher interest rates when you credit your salary, make bill payments, or invest with POSB. The more you do, the higher your interest rate will be.
Are there any tools available to estimate earnings from POSB savings?
Yes, POSB provides online calculators that help you estimate your savings and interest earnings. You can also use their mobile app to track your savings and view your account balances.
What distinguishes the interest rates of POSB and DBS savings accounts?
POSB and DBS are both part of the same banking group, but they may have different interest rates for their savings accounts. The interest rates may vary based on the type of account, the amount saved, and other factors.
How do POSB fixed deposit rates compare with their savings account rates?
POSB fixed deposit rates are generally higher than their savings account rates. Fixed deposits are a good option if you want to earn a higher interest rate on your savings, but they require you to lock in your money for a specific period of time.