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POSB MySavings Account

Never before have I been so keen to take up a promotion I received via email. Within 30 minutes of receiving the POSB MySavings Account emailer, I was drawn to the flexibility and higher interest rates being offered and submitted my application online for an account.

What exactly is it about MySavings Account that is so attractive? For a huge bulk of us, POSB/DBS had remained our main bank because of the legacy of POSB being a people's bank. That implies that much of our cash is lying in standard savings account earning measly 0.25% p.a. interest. MySavings Account actually offers a way out by dangling special interest rates as high as 1.5% per annum, 6 times higher.

$50 - $290 : 0.45%
$300 - $790 : 1.00%
$800 - $1,490 : 1.20%
$1,500 - $3,000: 1.50%

What's more is that there is flexibility to increase or decrease the monthly savings amount and even amend the monthly savings date anytime.

I went for the 2nd tier amount in order to enjoy the 1% interest rate but there is a small catch for those who bother to read the fine prints. Depositors who open a MySavings Account with at least $420 monthly savings amount can get a $42 dining voucher at Raffles The Plaza but the cost of the gift may be debited if the MySavings Account is closed or the monthly savings amount is reduced within a year after account opening. My advice is to start the MSA account with a monthly amount of $410 or less to avoid getting this "free" gift unless you belong to the group who is able to commit to a large monthly amount for higher interest rates. Being greedy for this "free" gift may jolly well end up making you worse off if you ever need to close the account within a year.
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Comments

Unknown said…
Hi,
is your mysavings account still running? I'm thinking of opening one as well and also going for 2nd tier when i saw on their website that there would be changes to their existing terms and conditions.Any ideas as to what change are going to be implemented?By the way, how do you like it?

Thanks for sharing,
Carene Lam
1/25/2009 3:16 AM
Ice said…
My mysavings account has been closed after I realised that the marginal interest promised can be bettered by other banks.

I am not sure what changes will be coming but since the website is relatively scathing on the details on the amendments to the additional terms and conditions, I do not believe it will be changes that will drive me to reopen a MSA.
1/28/2009 8:54 AM
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