If you’re looking to open a savings account in Singapore, POSB is a great option to consider. POSB offers a range of savings account options, each with its own unique features and requirements. One important factor to consider when choosing a POSB savings account is the minimum balance requirement.
Maintaining a minimum balance is a common requirement for many savings accounts, and POSB is no exception. Depending on the account you choose, you may be required to maintain a minimum balance of $500, $1,000, or more. If you fail to meet the minimum balance requirement, you may be charged a fall-below fee, which can range from $2 to $5 per month.
Despite the minimum balance requirement, there are many perks to maintaining a higher balance in your POSB savings account. For example, some accounts offer higher interest rates for higher balances, which means you can earn more money on your savings. Additionally, some accounts offer cashback rewards or other benefits for maintaining a higher balance. Overall, choosing the right POSB savings account and maintaining a healthy balance can help you achieve your financial goals.
Key Takeaways
- POSB offers a range of savings account options with different features and requirements.
- Maintaining a minimum balance is important for avoiding fall-below fees.
- Maintaining a higher balance can result in higher interest rates and other benefits.
Understanding POSB Savings Account Options
If you’re looking for a savings account in Singapore, POSB has a range of options to choose from. Here are the three main types of POSB savings accounts:
POSB Passbook Savings Account
The POSB Passbook Savings Account is a traditional savings account that comes with a physical passbook. With this account, you can earn interest on your savings and make withdrawals and deposits at any POSB branch. The minimum average daily balance (MADB) required for this account is S$500, and the service charge for falling below this balance is S$2 per month.
POSB Everyday Savings Account
The POSB Everyday Savings Account is designed for those who want a savings account that is easy to manage. This account comes with an ATM card and allows you to make withdrawals and deposits at any POSB ATM or branch. The minimum average daily balance required for this account is S$500, and the service charge for falling below this balance is S$2 per month.
POSB eSavings Account
The POSB eSavings Account is a digital savings account that can be managed entirely online. This account offers a higher interest rate than the other two accounts mentioned above, making it a great choice for those who want to earn more on their savings. The minimum average daily balance required for this account is S$500, and the service charge for falling below this balance is S$2 per month.
Overall, POSB savings accounts offer a range of options to suit different needs and preferences. Whether you prefer a traditional passbook account or a digital account that can be managed online, POSB has an option that is right for you.
When choosing a POSB savings account, be sure to consider your needs and preferences carefully. Think about how you plan to use your account, how much you can afford to save each month, and how often you will need to access your funds. With the right account, you can start saving for your future and achieving your financial goals.
Minimum Balance Requirements
To open a POSB savings account in Singapore, you must meet the minimum balance requirements. These requirements vary depending on the type of account you choose. Here are the minimum balance requirements for the most popular POSB savings accounts:
Minimum Average Daily Balance (MADB)
The Minimum Average Daily Balance (MADB) is the minimum amount of money you must maintain in your POSB savings account on a daily basis. If your account balance falls below the MADB, you will be charged a fall-below fee. Here are the MADB and fall-below fee for each account:
- POSB eSavings Account: MADB of S$500, fall-below fee of S$2.00 per month
- POSB Everyday/eEveryday Savings Account: MADB of S$500, fall-below fee of S$2.00 per month
- POSB Passbook Savings Account: MADB of S$500, fall-below fee of S$2.00 per month
- POSB Current/eCurrent Account: MADB of S$1,500 (maintained in linked POSB Savings Account), fall-below fee of S$2.00 per month
Fall-Below Fee
If your account balance falls below the MADB, you will be charged a fall-below fee. The fall-below fee is a monthly charge that is deducted from your account balance. The amount of the fall-below fee varies depending on the type of account you have.
- POSB eSavings Account: fall-below fee of S$2.00 per month
- POSB Everyday/eEveryday Savings Account: fall-below fee of S$2.00 per month
- POSB Passbook Savings Account: fall-below fee of S$2.00 per month
- POSB Current/eCurrent Account: fall-below fee of S$2.00 per month
Waiver Conditions for Young Adults
If you are a young adult between the ages of 18 and 29, you may be eligible for a waiver of the fall-below fee. To qualify for the waiver, you must meet the following conditions:
- Open a POSB savings account in your name
- Maintain a MADB of S$500 or more
- Be a Singaporean citizen or Permanent Resident
- Be between the ages of 18 and 29
In conclusion, maintaining the minimum balance requirements for your POSB savings account is important to avoid fall-below fees. By understanding the MADB and fall-below fee for your account, you can ensure that you are meeting the requirements and avoiding unnecessary charges.
Perks of Maintaining a Higher Balance
Maintaining a higher balance in your POSB savings account comes with several benefits. Here are some of the perks you can enjoy:
Interest Rates Benefits
One of the most significant benefits of maintaining a higher balance in your POSB savings account is the higher interest rates that you can earn. With a higher balance, you can earn more interest on your savings, which can help your money grow faster.
For instance, POSB offers a base interest rate of 0.05% p.a. for account balances below $5,000. However, if your account balance is $200,000 or more, you can enjoy an interest rate of up to 0.25% p.a. This means that you can earn up to $500 in interest per year, which is a great way to grow your savings.
Multiplier Account Advantages
Another benefit of maintaining a higher balance in your POSB savings account is the ability to enjoy the advantages of the DBS Multiplier Account. This account offers higher interest rates and other benefits, including cashback, when you meet certain criteria.
To qualify for the DBS Multiplier Account, you need to credit your salary, make eligible transactions, and maintain a minimum balance. The more eligible transactions you make and the higher your balance, the more interest you can earn and the more benefits you can enjoy.
For instance, if you credit your salary and make eligible transactions totaling $3,000 per month, you can earn up to 1.85% p.a. on your account balance. If your account balance is $200,000 or more, you can earn up to 2.20% p.a. on your savings. This means that you can earn up to $4,400 in interest per year, which is a significant amount of money. Additionally, you can enjoy cashback on your transactions and other benefits, such as fee waivers.
In conclusion, maintaining a higher balance in your POSB savings account can provide you with several benefits, including higher interest rates and the ability to enjoy the advantages of the DBS Multiplier Account. By taking advantage of these benefits, you can grow your savings and achieve your financial goals faster.
Account Management and Service Charges
As a POSB savings account holder, it’s important to understand the account management and service charges to avoid any extra fees.
Understanding Service Charges
POSB savings account requires a minimum average daily balance (MADB) to avoid service charges. The MADB requirement varies depending on the account type. For instance, the POSB eSavings account requires a MADB of $500, while the POSB Passbook Savings account requires a MADB of $1,000.
If your account falls below the required MADB, a service charge of $2 per month will be applied. Additionally, if you overdraft your account, an incidental overdraft interest charge of Prime + 5% p.a. payable on the overdrawn amount (min. $20) will be applied.
How to Avoid Extra Fees
To avoid extra fees, it’s important to maintain the required MADB for your account type. You can also consider opening a POSB Multiplier Account, which offers higher interest rates and allows you to earn bonus interest by fulfilling certain criteria such as credit card spend, salary credit, and investment with DBS/POSB.
Moreover, you can avoid the $2 account fee per month by enrolling in electronic statements and receiving paperless statements.
In summary, understanding the service charges and how to avoid extra fees is crucial for managing your POSB savings account. By maintaining the required MADB, opening a POSB Multiplier Account, and enrolling in electronic statements, you can save money and maximize your savings potential.
How to Open a POSB Savings Account
If you’re looking to open a POSB savings account, you’ll be pleased to know that the process is straightforward and easy to follow. Here’s what you need to know:
Step-by-Step Account Opening Process
- Visit the DBS/POSB website or any POSB branch near you.
- Fill out the account opening form with your personal details and preferred account type.
- Submit the form along with your necessary documents.
- Wait for your account to be approved and activated.
- Start using your new POSB savings account!
Eligibility and Necessary Documents
To be eligible for a POSB savings account, you must meet the following requirements:
- You must be at least 16 years old.
- You must be a Singaporean citizen, permanent resident, or hold a valid employment or work permit.
When opening a POSB savings account, you’ll need to provide the following documents:
- Your NRIC or passport
- Proof of address (e.g. utility bill, bank statement)
- Proof of employment or income (e.g. payslip, employment letter)
Once you have these documents ready, you can proceed with the account opening process.
It’s important to note that different POSB savings account types may have different minimum balance requirements and service charges. Be sure to check the specific details of your chosen account type before opening an account.
Overall, opening a POSB savings account is a simple and hassle-free process. With the convenience and benefits of a POSB savings account, you can easily manage your finances and save for your future goals.
Frequently Asked Questions
What’s the exciting scoop on POSB savings account service charges for falling below the minimum balance?
If you fall below the minimum balance requirement for your POSB savings account, you will incur a service charge. The amount of the charge depends on the type of account you have and the minimum balance required. To avoid these charges, it is important to keep your account balance above the minimum requirement.
How can I calculate the minimum balance for my POSB savings account and avoid fees?
To calculate the minimum balance for your POSB savings account, you can refer to the terms and conditions of your account or contact POSB customer service. To avoid fees, make sure to maintain your account balance above the required minimum balance.
Are there any delightful perks to maintaining a higher minimum balance in my POSB savings account?
Yes, maintaining a higher minimum balance in your POSB savings account can offer several delightful perks such as higher interest rates, priority banking services, and access to exclusive promotions and offers.
What’s the cheerful lowdown on opening a POSB savings account and the initial deposit required?
To open a POSB savings account, you will need to visit a POSB branch with your identification documents and a minimum initial deposit. The initial deposit amount varies depending on the type of savings account you choose.
Could you enlighten me on the minimum balance requirements for a POSB Passbook Savings Account?
The minimum balance requirement for a POSB Passbook Savings Account is S$500. If your account balance falls below this amount, you will incur a service charge.
What are the jolly details on POSB kid account minimum balance requirements?
POSB Kid Savings Account has no minimum balance requirement. However, to earn interest on the account balance, the account holder must maintain a minimum balance of S$1,000.