From our Bloggers

Are Singapore's high-yield savings accounts a trap? Explore the best options for August 2024

Are Singapore's high-yield savings accounts a trap? Explore the best options for August 2024
By Riya Chaudhary

With interest rates on the rise, Singapore’s high-yield savings accounts are more tempting than ever. These accounts promise higher returns on your savings, but the fine print reveals that not all are as straightforward as they seem.

  • DBS Multiplier offers up to 4.10% per annum with multiple banking activities required.
  • Bank of China SmartSaver has a headline rate of 7.00% per annum but challenging conditions.
  • OCBC 360 and Standard Chartered provide competitive rates with more flexibility.

With inflation rising, the US Federal Reserve has increased interest rates. As a result, banks are now offering better rates on savings accounts. High-yield savings accounts can be a great option, but it's important to know the terms to make the most of them.

DBS Multiplier for a Balanced Approach

The DBS Multiplier Account offers up to 4.10% per annum based on how many qualifying transactions you make. To unlock the highest interest rates, you’ll need to credit your salary, spend using DBS credit cards, invest, and insure with DBS. While this account is highly flexible and ideal for those already engaged in DBS’ ecosystem, it requires a strategic approach to meet the various criteria.

Bank of China SmartSaver for High Returns

The Bank of China SmartSaver stands out with a potential yield of up to 7.00% per annum on the first SGD 100,000 (approximately USD 74,000). However, to get this top rate, you’ll need to meet five specific conditions: buying insurance, using a credit card, having your salary credited, paying bills, and maintaining a certain savings balance. This account works best for those who can centralise their financial activities with the Bank of China.

OCBC 360 for Flexible Savings

OCBC 360 is a solid choice, offering up to 4.05% per annum on the first SGD 100,000 (approximately USD 74,000). It’s more straightforward than some other accounts, requiring just salary crediting, credit card spending, and a monthly increase in your account balance. It’s an attractive option for those seeking a balance between interest rates and accessibility.

Standard Chartered Bonus$aver for High Spenders

The Standard Chartered Bonus$aver Account offers up to 3.68% per annum, targeting high-income earners and big spenders. To achieve the maximum rate, you need to credit a salary of at least SGD 3,000 (approximately USD 2,200) and spend SGD 2,000 (approximately USD 1,470) or more monthly on your credit card. While the interest rates are appealing, the spending requirement may be a hurdle for some.

High-yield savings accounts in Singapore for August 2024 offer a range of options to suit different financial habits. Whether you’re a strategic saver with DBS, a high spender with Standard Chartered, or looking for a straightforward approach with OCBC, there’s an account for you. However, it’s essential to understand the requirements and align them with your financial habits to truly benefit from these high-interest rates.