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Do we still need a High Yield Savings Account?
Banks have been reducing their flagship High Yield Savings Account’s interest rate for a time being. This personally led me to compile the best savings product consisting of Insurance Savings Plan and Cash Management Solutions. It has come to a point where we ask ourselves whether there is still a need to own a High Yield Savings Account since the alternatives savings products are offering better returns with no conditions.
The answer is Yes! Although Insurance Savings Plans like Singtel Dash PET and Cash Management Solutions such as Syfe Cash+ offer better returns than a High Yield Savings Account, you still need a medium or platform for our banking needs in areas like Salary Crediting or Bill Payments. Furthermore, You will still need a bank account for ATM access and debit/credit card for transaction purposes. So, a High Yield Savings Account is here to stay for long and it is imperative not to ditch them for alternative savings products.
As readers have different needs, it will be difficult for me to recommend the specific accounts. Therefore, you might use an online tool such as the savings account calculator by Seedly. You can use this tool to determine whether you would like to stay on with your current savings account or to try out another savings account that gives slightly higher interest based on your needs.
However, depending on how much more interest you can eek out from trying out another savings account, it is all about whether the change is worth and also whether it caused any additional inconvenience such as shortage of ATMs for withdrawal and deposits. So, it is not necessary for one to change for better savings but cause additional inconvenience.
Introducing Standard Chartered’s Bonus$aver Account
With Standard Chartered’s Bonus$aver Account, you can earn up to 2.38% bonus interest every year on the first $80,000 eligible balance. This means up to $1,904 in bonus interest each year. The image below shows the requirements needed to fulfill the bonus interest. Take note that the bonus interest for spending will be 0.21% for individuals spending between the range of $500 and $1999.
My Thoughts on Bonus$aver Account
At one glance on the bonus interest breakdown, I believe that Bonus$aver Account is steered towards the insurance and investment portion.
To be eligible for the Investment’s bonus interest of 0.9%, an individual must purchase an eligible Unit Trust of a minimum investment sum of $30k in a single subscription that does not include ETFs, investments via RSP and switching transactions. I feel that this is too steep for any individual and would not recommend people signing up for this account to get the bonus interest for Investment.
However, I am of the opinion that it is quite easy to achieve the bonus interest of 0.9% for Insurance as an individual is required to have a minimum $12,000 annual premium for an Eligible Insurance Policy. Eligible Insurance Policy means a regular premium life insurance policy underwritten by Prudential. Once again, do look into your own insurance needs before purchasing new insurance for the bonus interest.
I need to emphasise the fact that Bonus$aver Account might not be for everyone and it is important to use online tools such as the savings account calculator by Seedly to determine whether this account is suitable for you based on your banking needs.
SingSaver X Standard Chartered
SingSaver is currently having an exclusive promotion for readers who do not have a Bonus$aver account in the last 12 months where you get to receive $30 cash via PayNow instantly upon account opening. You also get to receive an AirPods Pro or $250 Cash via PayNow if you deposit fresh funds of $50k maintained in your account until the end of the calendar month in which the account is opened. Although there is no minimum deposit required, it is recommended to deposit at least $3000 when signing up so as to take into account the monthly fall below fees.
Sign Up Here. Promotion ends on 5 May 2021.
Disclaimer: This article is written in partnership with SingSaver and contains affiliate links, which help to keep the site financially sustainable. Terms and Conditions apply. Please do your due diligence whether the promotion campaign is suitable for your banking needs.