When choosing where to park your money, more often than not, you would be comparing amongst other banks for the best interest rates.
One thing you would have realised is that traditional banks in Singapore – be it UOB, DBS or even Standard Chartered – their highest interest bank accounts are often those that need you to hit requirements – minimum salary crediting, spend requirement on their credit cards, etc. Impossible to hit for some.
There are also digital banks offering 2.7% p.a. without needing to hit requirements too. But there are other avenues to get much higher interest rates without needing to hit requirements or take on high risk investments.
Here are some low-risk options to consider in getting higher returns:
- Singlife Account – 3% p.a. on first S$10k (Up to 3.5% p.a.)
- Chocolate Finance – 4.2% p.a. on first S$20k
Singlife Account – 3% p.a. on first S$10k (Up to 3.5% p.a.)
The Singlife Account is an insurance savings plan that earns interests on your savings. It is capital guaranteed by SDIC Policy Owners’ Protection Scheme up to S$75k. There is no lock-in duration or amount so one can withdraw anytime.
Interest rate
First S$10k – 3% p.a. base + 0.5% p.a.
You can earn up to 3.5% p.a through the Singlife Account Top-up Campaign which gives an additional 0.5% when you make a net top-up of S$800 per month.
The next S$90k – 1% p.a.
No interest for amounts above S$100k
Speed of Withdrawal to Bank Account
Withdrawals to bank account is fast, though not instant. Usually takes about 15 minutes.
Life Coverage
Being an insurance savings plan, it too comes with a life insurance coverage of up to 105% of the deposit in the event of death or terminal illness – renewed yearly and terminated once the benefit is paid.
| In an event of death or terminal illness | Benefit |
| Before the policy anniversary on which life assured’s age last birthday is 61 | Sum of: – deposit; AND – 5% of deposit or S$50,000, whichever is lower |
| On or after the policy anniversary on which life assured’s age last birthday is 61 | Sum of: – deposit; AND – 1% of deposit or S$50,000, whichever is lower |
Things to note:
- Be between 18 – 75 years old to open the account
- Minimum balance of S$100 in the account to earn interest
- Minimum deposit of S$100 to open the account
- Interest returns are not guaranteed and subject to changes
Chocolate Finance – 4.2% p.a. on first S$20k
Chocolate Finance is basically like a cash management account where funds are invested in fixed income securities.
While it is not SDIC insured, your cash is segregated and held in custodian banks such as HSBC and State Street. This makes it safe in case it ever goes under.
Interest rates
First S$20k – 3.3%
You will earn 3.3% on the first $20k no matter the performance of the fund as Chocolate Finance would top up the difference if the fund underperforms.
Amounts above S$20k – Target 3%
Other than the first $20k, the rest is subject to the fluctuations of the fund performance.
This means that you might possibly incur losses if the fund underperforms. If the fund outperforms, you would get up to the targetted 3%.
If you are not the type to take risks, you could just keep the account to $20k and transfer out your daily returns everyday.
Speed of Withdrawal to Bank Account
Withdrawals up to S$20k per day is instantaneous. It is as fast as a PayNow transfer.
How to sign up?
You would have to sign up through a referral link to skip the waitlist to get an account. You can use my referral link to do so.
Things to note:
- Minimum of S$87 in the account to start earning interest
- Ensure account does not exceed S$20k after interest crediting to ensure you get 3.3% p.a. no matter the performance of the fund
Disclaimer: Any views or opinions represented in this post are personal and being solely to me and do not represent those of people, institutions or organisations that I may or may not be associated with in professional or personal capacity, unless explicitly stated. Please exercise due diligence when signing up for any service/product as I will not be liable for any personal loss, financial or otherwise. None of the information here constitutes personal financial advice. Thank you for supporting my site!