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YouTrip Review: Is It the Best Multi-Currency Account for Singapore?


<p>Singlife has been turning heads with its promise of higher interest rates beating regular savings accounts, Singapore Savings Bonds, and even fixed deposits. After all, who wouldn’t want to earn more money with their savings?</p>



<p>That said, with their recent rate change (July 2021), <strong>is the Singlife Account still as attractive as before?</strong></p>



<p>Today, we’ll uncover essential details about the Singlife Insurance Savings Plan to help you decide if it’s still a good place to sink your money into.&nbsp;</p>



<p>Here’s what we’ll cover:</p>



<ul><li><a href="#what">What is the Singlife Account? How does it work?</a></li><li><a href="#benefits">What are the benefits of a Singlife account?</a></li><li><a href="#worth">Is it worth getting the Insurance Savings Plan?</a></li><li><a href="#sa">Singlife vs StashAway Simple</a></li><li><a href="#best">For whom is the Singlife account best for</a></li></ul>



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<h2 id="what"><strong>What is the Singlife Account? How Does It Work?</strong></h2>



<p>The Singlife Account doubles up as both a savings account and insurance coverage. <strong>But don’t mistake this for a regular bank account or fixed deposit.</strong></p>



<p>There are two main components to the Singlife Account, so let’s pick them apart and take a closer look at their features:&nbsp;</p>



<h3><strong>1. Savings</strong></h3>



<p>Even though Singlife’s interest rates have dropped since July, they’re still decent compared with regular savings and fixed deposit accounts in the current economy.</p>



<figure class="wp-block-table"><table><tbody><tr><td><strong>Deposit</strong></td><td><strong>Singlife Interest Rates (p.a.)</strong></td></tr><tr><td>S$500 to S$10,000</td><td>1%<br>Additional 0.5% when you spend at least S$500 monthly on Singlife Visa Debit Card</td></tr><tr><td>S10,001 to S$100,000</td><td>0.5%</td></tr><tr><td>Above S$100,000</td><td>None</td></tr></tbody></table></figure>



<p>It takes just S$500 to open an account with Singlife. Thereafter, you’ll need to maintain a minimum of S$100 to keep getting interest on a monthly basis.</p>



<p>You’ll get the <strong>maximum returns (1.5%) when you park up to S$10,000 with them </strong><strong><em>and</em></strong><strong> spend S$500 monthly on the Singlife Visa debit card.</strong> But the interest rate drops the more money you park with them — you won’t get anything extra above S$100,000.</p>



<p>There’s no lock-in period, so account holders can make a FAST transfer at any time and get their funds almost immediately. You won’t even have to pay extra fees for this, which is a huge plus compared to fixed deposits.</p>



<p>The Singlife Visa Debit card also has no annual subscription or foreign exchange fees. It doesn’t work with mobile payment apps like Apple or Google Pay yet, but Singlife assures us that this feature will be available soon.</p>



<h3><strong>2. Insurance</strong></h3>



<p>As a Singlife account holder, you’ll receive life insurance and retrenchment coverage:</p>



<figure class="wp-block-table"><table><tbody><tr><td><strong>Life Insurance Coverage</strong></td><td><strong>Retrenchment Coverage</strong></td></tr><tr><td>&nbsp;Coverage for death or terminal illness is up to 105% of account value</td><td>&nbsp;Retrenchment benefit for three months, up to S$10,000*</td></tr></tbody></table></figure>



<p>*<em>Benefit calculated based on the average monthly card transaction values made over the 6 months immediately before the date of retrenchment.</em></p>



<p>The retrenchment coverage is a timely offer considering how Covid-19 is still looming and causing much instability in the economy. Just make sure to read the <a href="https://images.singlife.com/wp-content/uploads/2020/04/16101242/Singlife-Account_Terms-And-Conditions.pdf" target="_blank" rel="noreferrer noopener nofollow">fine print</a> because there are few clauses that may affect your claims.&nbsp;</p>



<p>For example, here are some exclusions that you should take note of:</p>



<ul><li>You were aware that you’d be retrenched before buying the policy</li><li>You’re self-employed, a freelancer, or a sole proprietor immediately before being retrenched</li><li>Your unemployment is due to resignation, retirement, redeployment and temporary layoffs</li><li>Your retrenchment was due to misconduct, breach of employment contract, or labour dispute</li></ul>



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<h2 id="benefits"><strong>What are the Benefits of a Singlife Account?</strong></h2>



<p>Let’s take a look at what the Singlife Account offers:</p>



<figure class="wp-block-image size-large"><img loading="lazy" width="1024" height="640" src="https://www.moneymate.sg/wp-content/uploads/2021/08/singlife-account-benefits-features-1024x640.png" alt="" class="wp-image-756" srcset="https://www.moneymate.sg/wp-content/uploads/2021/08/singlife-account-benefits-features-1024x640.png 1024w, https://www.moneymate.sg/wp-content/uploads/2021/08/singlife-account-benefits-features-300x188.png 300w, https://www.moneymate.sg/wp-content/uploads/2021/08/singlife-account-benefits-features-768x480.png 768w, https://www.moneymate.sg/wp-content/uploads/2021/08/singlife-account-benefits-features.png 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



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<h2 id="worth"><strong>Is It Worth Getting an Insurance Savings Plan?</strong></h2>



<p>An insurance savings plan sounds attractive for those who value convenience. You don’t have to deal with two separate accounts and you get a higher interest rate <em>on top of </em>that coverage. So, why not?</p>



<p>If you dig a bit deeper, you’ll notice <strong>a few weaknesses in the plan.</strong></p>



<p>For one, a big part of the premium goes to investment and a smaller portion goes to mortality charges. That means the <strong>coverage would be significantly lower than if you buy full-fledged life insurance.</strong></p>



<p>Secondly, you’ll get a team of managers investing your funds. Unfortunately, the returns will never be quite as substantial because a large chunk of it went into paying the fund managers for their work.</p>



<p>This is why the returns for such insurance savings plans <strong>can sometimes lose out to cash management or investment-related accounts.</strong> We’ll talk about one such comparison in the next section on SingLife vs StashAway Simple.</p>



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<h2 id="sa"><strong>Singlife vs StashAway Simple</strong></h2>



<p>How does a Singlife account compare with a cash management account like <a href="https://www.moneymate.sg/stashaway-review">StashAway</a><strong> </strong>Simple™?&nbsp; Here’s a quick overview of the differences:&nbsp;</p>



<figure class="wp-block-table"><table><tbody><tr><td></td><td><strong>Singlife Account</strong></td><td><strong>StashAway Simple™</strong></td></tr><tr><td>Minimum to start</td><td>S$500</td><td>None</td></tr><tr><td>Minimum monthly balance</td><td>S$100</td><td>None</td></tr><tr><td>Interest rate per annum</td><td>0.5 to 1%*</td><td>1.2%</td></tr><tr><td>Withdrawal fee</td><td>No</td><td>No</td></tr><tr><td>Other chargeable fees</td><td>None</td><td>Around 0.217% charged by the underlying fund managers</td></tr><tr><td>Lock in period</td><td>None, can withdraw anytime</td><td>None, can withdraw anytime</td></tr><tr><td>Accepts Supplementary Retirement Scheme (SRS) funds</td><td>No</td><td>Yes</td></tr><tr><td>Insurance coverage</td><td>Yes</td><td>No</td></tr><tr><td>Projected rate subject to change</td><td>Yes.&nbsp;It is a capital-guaranteed insurance savings plan. Returns are not guaranteed.&nbsp;</td><td>Yes.&nbsp;&nbsp;Returns are affected by Singapore’s economic health and trajectory.</td></tr></tbody></table></figure>



<p><em>*Based on Singlife Account only — does not include fees for linked products like debit cards.</em></p>



<h3><strong>Where Singlife wins:</strong></h3>



<ul><li>No cost to maintain</li><li>Insurance coverage for death, major illnesses, and unforeseen retrenchment</li><li>Capital guaranteed</li></ul>



<p>If you find the insurance portion useful because you don’t have sufficient coverage from existing policies, the Singlife account could be a convenient option that combines both saving and protection.&nbsp;</p>



<p>Another highlight is Singlife’s “capital guaranteed” clause. Even in the worst economic climate, account holders can still recoup their capital. With StashAway Simple, there’s a <em>tiny</em> chance of losing your capital if the market goes south.</p>



<h3><strong>Where Stashaway Simple™ wins:</strong></h3>



<ul><li>No tiered earning structures; flat 1.2% per annum in interest</li><li>Account flexibility extends to facilitating SRS management</li><li>No minimum sum to start an account and no monthly balance to maintain</li></ul>



<p>StashAway Simple™ does away with complicated calculations and offers a flat rate of 1.2% that beats Singlife hands down.&nbsp; <strong>It’s a way better deal for those looking to park larger sums of cash.&nbsp;</strong></p>



<p>Assuming you put S$50,000 in StashAway Simple, you’ll get S$600 in interest.&nbsp; But with Singlife’s tiered structure, you’ll only get S$300.</p>



<p>Even assuming you spend S$500 a month on the Singlife card to get an extra 0.5% interest, you’ll only have S$350 in interest for the year.</p>



<p>If you prefer a straightforward account that earns higher interest and you’ve got no need for additional insurance coverage, StashAway Simple is the better option. Being able to use your SRS funds is an extra perk as well.</p>



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<h2 id="best"><strong>The Singlife Account is Best For&#8230;</strong></h2>



<ul><li>Those who love the convenience of combining their savings and insurance so they don’t have to handle multiple accounts</li><li>Those with lesser cash on hand but would like to receive higher yield than a regular bank account</li><li>Those who aren’t sure they’re ready to commit to a long-term life policy</li></ul>



<p>But the Singlife account is <strong>not </strong>suitable for:</p>



<ul><li>Those who want to use their SRS funds</li><li>Those who are investment-savvy and can get higher returns by managing their own investments</li></ul>


Singlife Account Review: Is It the Best Place to Park Cash?


<p>Savings and current accounts are among the most common types of bank accounts in Singapore. It’s easy to regard these as the same, but they’re actually designed for different purposes.</p>



<p>Using DBS as an example, here’s a quick comparison table on the differences:</p>



<figure class="wp-block-image size-large"><img loading="lazy" width="1024" height="603" src="https://www.moneymate.sg/wp-content/uploads/2021/08/comparison-of-dbs-bank-accounts-1024x603.png" alt="Comparison table of DBS bank accounts - current, savings, multiplier, and multi-currency" class="wp-image-743" srcset="https://www.moneymate.sg/wp-content/uploads/2021/08/comparison-of-dbs-bank-accounts-1024x603.png 1024w, https://www.moneymate.sg/wp-content/uploads/2021/08/comparison-of-dbs-bank-accounts-300x177.png 300w, https://www.moneymate.sg/wp-content/uploads/2021/08/comparison-of-dbs-bank-accounts-768x452.png 768w, https://www.moneymate.sg/wp-content/uploads/2021/08/comparison-of-dbs-bank-accounts.png 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<p>* Note: As of the time of writing, DBS has phased out its Current Accounts and is ushering people toward their multi-currency accounts instead.</p>



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<h2><strong>1. Current Account</strong></h2>



<p>Many of Singapore’s local banks still offer a range of current accounts. These are mainly for your day-to-day transactions — taking out cash from an ATM, buying groceries, or paying your utility bill for example. </p>



<p>Current accounts <strong>aren’t meant to store big sums of money for long periods.</strong> That’s why they typically come with very low (or no) interest, with no penalties for withdrawing cash whenever you need it. They also come with a chequebook, which most other accounts don’t offer.</p>



<p>With a current account, you can make payments using a linked debit card, use online banking, perform money transfers to other accounts, and more. Some of them also have overdraft facilities and additional phone banking support, which can be useful for businesses, sole proprietors, or freelancers.</p>



<p>Keep in mind that you’ll usually need a minimum balance of $2000 – $3000 to avoid paying service charges. For example, the OCBC and UOB current accounts charge a fee of $7.50 if your average daily balance for the month is below S$3,000.</p>



<h3><strong>Benefits of a Current Account:</strong></h3>



<ul><li>Convenient mode of payment for everyday use</li><li>Access to online banking, debit cards, cheques, or ATMs</li><li>No limits on the number of transactions</li><li>Suitable for businesses</li></ul>



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<h2><strong>2. Savings Account</strong></h2>



<p>The average Singaporean earns around $4,500 per month (before CPF deductions) and saves about 20% of that. That 20% should ideally be put into a savings account, which <strong>gets a higher interest rate compared to current accounts.</strong></p>



<p>Like the name implies, a savings account is for your savings. You can still tap on the funds if needed, but <strong>it’s best if you leave the money in the account.</strong> DBS, for example, will give you <a href="https://www.dbs.com.sg/personal/rates-online/deposit-rates.page#emsa" target="_blank" rel="noreferrer noopener nofollow">less interest for the month</a> if you make a withdrawal from your MySavings Account.</p>



<p>Savings accounts usually don’t have an initial deposit or monthly account fees. But savings accounts do have a minimum balance requirement of $1,000 or $3,000 depending on your bank and account. If your balance dips below this, you’ll be charged either a $2 or $5 fee.</p>



<p>Savings accounts in Singapore can sound a little complicated at first. They tend to have different interest rates depending on your income and the number of monthly transactions you make. These rates usually also only apply to the first S$50,000 or so of your savings — <strong>you won’t get more interest for saving more, so it’s best to channel those funds elsewhere.</strong></p>



<p>Savings accounts have an interest rate from 0.05% p.a. However, many accounts (known as Multiplier accounts) have bonus tiers that can easily earn you 1-2% interest rates. We’ll explain more later!</p>



<h3><strong>Benefits of a Savings Account:</strong></h3>



<ul><li>Keeping money that you use once in a while but may need on short notice</li><li>Holding your emergency funds</li><li>A convenient mode of payment</li><li>Access to online banking, debit cards, or ATMs</li></ul>



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<h2><strong>3. <em><span style="color:#00d6bf" class="has-inline-color">Bonus</span></em>: Multiplier Account</strong></h2>



<p>A multiplier account is <strong>a savings account </strong><strong><em>and more</em></strong><strong>.</strong> You get a base interest amount, plus bonus interest when you fulfil specific additional requirements — for example, buying insurance, paying off your mortgage, or spending using your credit card.</p>



<p>Multiplier accounts like the <a href="https://www.dbs.com.sg/personal/deposits/bank-earn/multiplier?pid=sg-dbs-pweb-loans-buyhdb-multiplier" target="_blank" rel="noreferrer noopener nofollow">DBS Multiplier</a> and <a href="https://www.ocbc.com/personal-banking/deposits/360-savings-account" target="_blank" rel="noreferrer noopener nofollow">OCBC 360 Account</a> reward consumers for crediting their salary into the account and engaging with bank products like credit cards, insurance, and investments. You get even more bonus interest when you hit a minimum threshold for transaction sizes, depending on the bank.&nbsp;</p>



<h3><strong>Benefits of a Multiplier Account:</strong></h3>



<ul><li>Higher interest rates (up to 3% p.a.) when you transact in all the categories</li><li>No penalties for withdrawing or spending</li><li>Transactions are automatically detected across all bank accounts, so you don’t need to spend solely from the Multiplier account</li></ul>



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<h2><strong>4. <em><span style="color:#00d6bf" class="has-inline-color">Bonus</span></em>: Multi-Currency account</strong></h2>



<p>Many bank accounts in Singapore only hold Singapore dollars, so any foreign currency you get is automatically converted into SGD. Multi-currency accounts are the one exception. This is a plus if you often <strong>travel, shop internationally, or move money in foreign currencies.</strong></p>



<p>For example, the <a href="https://www.dbs.com.sg/personal/rates-online/multi-currency-accounts.page" target="_blank" rel="noreferrer noopener nofollow">DBS Multi-Currency Account (MCA)</a> can hold up to 12 foreign currencies, including the Euro, Hong Kong Dollar, Thai Baht, and US Dollar.&nbsp;</p>



<h3><strong>Benefits of a Multi-Currency Account:</strong></h3>



<ul><li>Don’t lose money to foreign exchange fees</li><li>Good for business owners or individuals with holdings in different countries</li><li>Easy access to funds when you travel</li><li>Some banks offer interest on holdings in certain foreign currencies</li><li>Can convert funds when exchange rates are favourable, then store it until you need it</li></ul>



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<h2><strong>How Do I Choose the Best Account for Me?</strong></h2>



<p>Thinking about how and when you’re using your funds is the first step. But don’t feel limited to choosing only one — most Singapore banks make it easy for you to open multiple accounts for different purposes.</p>



<p>Other things to think about include the monthly fees, minimum balance requirements, customer service, debit/credit cards, cheque book options, and transaction fees. Singapore’s financial markets offer a variety of current and savings accounts to suit most needs.</p>


Current vs Savings Accounts in Singapore: What’s the Difference?

Revolut Singapore Review: What You Need To Know Before Signing up

Bank Accounts

YouTrip Review: Is It the Best Multi-Currency Account for Singapore?

Singlife Account Review: Is It the Best Place to Park Cash?

Current vs Savings Accounts in Singapore: What’s the Difference?

Revolut Singapore Review: What You Need To Know Before Signing up