Cheat Sheet: Which Accounts Are The Best For Fresh Graduates?

“My savings account suck, What are the better options”

Yup, that was also the same question we had previously when our whole team started working. With that in mind, we are lucky here in Singapore that the banks have strategically designed their accounts around your needs. And having a Salary at the end of the monthly changes the picture as we start saving up in the coming years and it is also an important trigger to decide which savings account is best for you, fresh graduates.

This post is dated to July 2017 so it may change further down the road as well (because you know that banks are often adjusting their policies and promotions to maximize profitability)

A Typical Fresh Graduate Scenario

• Earn $2k, credited salary to account
• Spend a min. $500 a month on a credit card (which is quite easy to hit once you start paying your bills, daily expenses on your own)
• Your starting account balance varies accordingly from 10k to 50k (we will elaborate more in the chart below)

For simplicity sake, we are going to compare the 3 most popular savings accounts in Singapore which are commonly applied based on the salary and spending above. We are NOT comparing the promotional deals for accounts that are usually for a shorter term. We will update this blog also as new information comes up regarding these savings account, check back often!

The 3 Players: DBS vs OCBC 360 vs UOB ONE

Our Strategy – Start with OCBC360 unless you have $40k

• Most likely you would have graduated or started working with a DBS or POSB savings account from when you were a child
• We feel that it is not wise to keep your savings in that account as you would not be spending over $7.5k a month for home loans, card spending etc.
• Thus, the best option would be OCBC360 account where you get the most effective yearly interest in a short amount of time
• Consider to switch over to UOB ONE when you have amassed around $40k of savings (but usually that would be 3 – 4 years into the job)

Important things to note:

• Take note that the above chart heavily depends on the monthly spending on the relevant card (Rebates)
• If you are spending with different cards for miles etc, numbers will be affected.
• Regarding Salary GIRO credit, do check with your HR manager in your company whether it is under the transaction code: SAL
• Fun fact: There is no free lunch in the world, the banks are competing for our business this to get more data on your salary and spending numbers to potentially up-sell you and hope you buy other banking products in the future (eg. loans, mortgages etc.)

If you are keen to ask questions or discuss more on savings accounts and card deals, please do join our open Facebook Group where you can learn from fellow folks residing in Singapore who are all learning together.

Further reading – Detailed Information

1) OCBC 

• 360 Savings Account
• 365 Credit Card

2) UOB

• UOB ONE Savings Account
• UOB ONE Credit Card

3) DBS/POSB

• Multiplier Savings Account
• Available Credit Cards

Source: Seedly