Friday, July 19, 2013

Can I save some money while working in Singapore?

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Posted on Friday, July 19, 2013

Can I save some money while working in Singapore?
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Whether one is a fresh graduate or has been working for a period of time, having a nest egg will foremost occupy the mind. Financial planning & awareness would be beneficial in the long run should job loss or illness occur.

How do we juggle everyday expenditure and our future needs? Where do we turn to facilitate our approach to be more financially secured? The following are just 2 examples the banks have on offer for consumers to utilise en route to that goal.

Savings Account

Having a savings account is the first step towards managing your finances. A basic deposit account is the most common and allows you to keep track with statements. With the advent of internet banking, this is available for easy viewing real time.

Each bank has their own unique products and services designed to their clients’ taste. Starting off with a minimum deposit amount or through salary credits, transactions are easily accessible at the branch, automated teller machines (ATMs) or online.

As your assets are liquid in nature, there is no restriction to access the funds. Do note however, there may be a limit to monthly transactions and/or may incur a fee. Deposits placed in savings account accrues interest which varies between accounts and banks.

Fixed Rate Bonds

Unlike savings account, if you have considered fixed rated bonds, it requires you to invest a lump sum for a specific period with no access until maturity. This would be recommended when you already have a considerable sum and wish to maximise your savings.

By locking your cash reserves, you stand to accrue a higher interest rate than those offered in savings/checking/deposit account. No additional deposit or withdrawal is allowed once this has taken into effect.

Upon maturity, you may have the option to:

1. withdraw the full sum
2. renew for the same tenure
3. continue accruing interest at a lower rate.

The interest rates offered are usually higher for larger amounts and longer tenure.

Whether you have a savings account or considered fixed rate bonds, the best way for me to save money is to live within your budget and within your means.  It would be wise to ask yourself when buying things if it's a want or a need.

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