Savings Account Comparison

What is Savings Account?

Savings account is the most common deposit account available for consumers to deposit excess cash with banks or other financial institutions. It provides consumers the principal security and interest on the excess cash they deposit.

How Does Savings Accounts Work in Singapore?

Deposit account enables you to save your funds in a risk-free location and generate a modest amount of interest at the same time. These accounts generally require a minimum amount to open, it ranges from as little as S$10 to as high as S$1,000. However, there are some accounts don't involve any minimum deposit amount too.

How Can I Apply For Best Savings Account?

Most banks offer you the option to open your Savings Account through their iBanking system if you are their existing customer. Meanwhile for new customers, you can apply easily for a eSavings account online by filling up their online application form or you can even compare savings account and apply through iMoney and we will redirect you directly to the bank’s page.

Types of Regular Savings Accounts in Singapore

There are several types of savings accounts available in the market, which the three major ones are junior savings accounts, regular/basic savings accounts, and e-savings accounts.

• Junior Savings Accounts: These accounts are exclusively available for children or young adults under 18 years old. Parents or legal guardian will have to be the joint account holder for the case of the child is below 16 years old. These accounts usually generate higher interest compared to a regular savings account, ideal for parents who want to start teaching their children about savings.

• Regular/Basic Savings Accounts: These are the most common account that each individual will use. It provides basic facilities like ATM/debit card, passbook, and generates a modest interest. An individual has to be at least 18 years old to qualify for a savings account, with a minimum deposit amount required by the particular bank.

• eSavings Accounts: This is a relatively new savings product compared to the previous two. An eSavings account do not come with a passbook or paper statement. These accounts basically serve the same functions as a regular savings account but with a lower or even zero maintenance fee. It is particularly ideal for those who use internet banking to manage their day-to-day banking transaction.

What About Islamic Banking?

Islamic banking is a universal term that must follow Sharia principles and moral values of Islam. Generally, all transactions need to be interest-free. The concept of interest in Islam is not allowed, which can be defined as “riba” is forbidden by Sharia. Besides that, Islamic banks cannot invest in any industries that is “haram” or forbidden in Islam.

Other than that, the concept of Islamic banking should remove the “gharar” matter. “Gharar” means that it is generally against any transactions that are highly uncertain or may cause any injustice against any parties.

When you put your money in the bank, you are allowed to receive “hibah” or “gift” from the bank as it is considered as gift given by the bank’s will. Bear in mind that the “hibah” rate is not fixed and can be change any time by the bank.

Bank can only charge your account directly as administrative charge and has no right to deduct any amount from the account. In brief, Islamic banking forbids uncertain activities and prohibits any interest-bearing loan facilities. Profit and loss sharing and its instruments must be assets based. In that sense, Islamic banking is banking according to the ethics of Islam.

Is Islamic Banking for Muslims only?

Generally NO, as Islamic Banking is for anyone who wants to opt for interest-free banking.

Interest Rates of Savings Account in Singapore

Interest on deposit accounts is usually compounded daily and will be paid monthly. The compounded interest rate is the rate the bank is paying based on your bank balance (including interest generated in the past). A compounding interest rate allows the principal amount to grow at a faster rate rather than simple interest, which is calculated as a percentage of the principal amount only.

The Advantages of a Savings Account

• Savings accounts encourage the habit of savings among fixed income earners

• It enables account holders to earn an interest on their income

• It provides availability of immediate cash funds through ATM facilities

• It provides facilities like internet banking and online transactions

• If it is your first bank account, a savings account also helps you establish a relationship with a bank and contributes positively to your credit rating

What Documents Do I Need to Apply for Savings Account?

Singaporeans / PRs:

• NRIC
• Fill in the account opening form
• Cash / cheque for initial deposit (if any).

Foreigners:

• Passport
• Employment Pass / S Pass
• Company letter / Proof of residential address

How long will it take to get my Savings Account approve?

The subject to approve vary to which bank you are applying with, the manner in which you are applying and time taken usually from 1 day to a week.

Savings Accounts and iMoney

iMoney compares almost every single savings account in Singapore in a plain simple table for your convenience. Review the latest interest rates and promotions available with each individual bank. Application with iMoney is simple and easy, and most importantly, this service is completely free!

Read the latest news and updates on Savings Account in Singapore here.