FAQs on regular savings plans in Singapore
What is a regular savings plan?
A regular savings plan is a type of savings account that offers customers the ability to make regular deposits into their account, typically every month. The funds in the account can then be used for various purposes, such as investments, emergency savings, or future expenses.
How do regular savings plans work?
Customers who open a regular savings plan will typically be required to make a minimum deposit each month, which may be as low as $50. The money in the account can then be used for any customer’s choice. Some regular savings plans may offer interest on the deposited funds, while others may not.
What are the benefits of a regular savings plan?
There are several benefits of having a regular savings plan, including the following
- A regular savings plan can help you save money every month
- Funds in a regular savings plan can be used for investments, emergency savings, or other purposes
- Some regular savings plans offer interest on deposited funds
What are the risks associated with a regular savings plan?
There are a few risks associated with regular savings plans, including the following
- Customers may be penalized if they miss a monthly deposit
- Funds in a regular savings plan may not be accessible immediately if needed
How can I find the best regular savings plan for me?
There are a few things to consider when looking for the best regular savings plan for you, including the following
- The minimum deposit required each month
- The interest rate offered on deposited funds
- The terms and conditions of the plan- Whether the funds can be used for investments or other purposes
What are some of the best regular savings plans in Singapore?
There are a few good options when it comes to regular savings plans in Singapore, including the following
- OCBC 360 Account
- POSB Everyday Savings Account
- UOB One Account- Maybank StepUp Account
How do I open a regular savings plan?
Opening a regular savings plan is typically straightforward and can be done online or in person at a bank or other financial institution. Customers will likely be required to provide personal information when opening an account, such as their name, address, and date of birth. You can look at https://www.home.saxo/en-sg/products/mutual-funds to see what is needed to create a savings plan in Singapore.
Is there a minimum/maximum amount to invest monthly?
The minimum amount to invest in a regular savings plan is S$50, while the maximum amount is no set limit. However, it is essential to note that some banks may limit how much you can invest in a regular savings plan.
Who is eligible to set up a regular savings plan?
All Singapore citizens and Permanent Residents are eligible to open an RSP account. Foreigners who have resided in Singapore for at least three months are also eligible.
How do I update my regular savings plan?
You can update your regular savings plan by contacting your financial institution and making the necessary changes to your account.
How do I set up my regular savings plan?
You can set up a regular savings plan by visiting any participating banks in Singapore and opening an account with them.
Can I terminate my regular savings plan?
Yes, you can terminate your regular savings plan at any time by contacting your financial institution and closing your account.
What is GIRO?
GIRO stands for General Interbank Recurring Order. A payment system allows customers to have their salary or monthly bills automatically deducted from their bank account and credited into another account. It eliminates the need to go to the bank to make payments manually each month.
How long will it take for the GIRO to be effective?
Once you have set up your GIRO arrangement, it will take 1 to 2 working days to activate the GIRO. After that, your regular savings plan will be deducted from your account on the agreed date and deposited into your RSP account.