My favourite top 3 savings accounts

My current favourite top three bank accounts are as follows:

1. Maybank iSavvy account
2. Fairprice Plus Savings account
3. Standard Chartered e$aver (in the process of applying)

The detailed features of each bank account can be found in the respective banks' websites but the key factor why they are my favourites is the interest rate they pay for savings accounts.

Internet banking
All three are savings accounts and are operated mainly as internet banking accounts. This means that there is no passbook or statement that will be sent to you. Instead, you need to logon to your internet banking account if you want to check your balances, transfer monies out of the account etc.

Interest rate
As at 12 July 2007, the interest rates for the respective accounts are as follows:

1) Maybank iSavvy - 1.68% for balances exceeding $5,000 and 1.98% for balances exceeding $50,000. Balances below $5,000 will be paid at prevailing lowest tier of savings rate which is currently 0.25%.

2) Fairprice Plus savings - 1% for all amounts starting from the first dollar.

3) Standard Chartered e$aver - 1.5% for balances below $50,000 and 2% for balances exceeding $50,000.

For balances between $5,000 and $50,000, Maybank iSavvy offers the best deal at 1.68% based on current available information. For balances < $5,000 Stanchart eSaver is attractive at 1.5%. Balances exceeding $50,000 can take advantage of eSaver at 2%. (Do monitor the banks websites as interest rates change at the banks' discretion). Therefore, if you are deciding purely based on interest rate, you should consider how much average balances you are likely to maintain as this will affect your decision.

Automated Teller Machine (ATM)
Of the three, Maybank's iSavvy offers ATM service but only through their own ATM network which has lesser machines compared to big three local banks (DBS, OCBC, UOB). Fairprice Plus savings account uses OCBC ATM network while Stanchart's eSaver has no ATM service. If this is important to you, you should consider if there are available ATMs near your home or workplace before deciding which one to go for. There are also charges for using other banks' ATMs in the case of Fairprice Plus savings so do check before deciding.

My assessment
The main reason why these banks are my favourites is because of interest rates. Even the lowest, i.e. Fairplus Plus savings offers 1% so I can get at least that return regardless of the amount I want to save. I have broadband internet access at home and find it quite convenient to transact my banking needs online. Transfers between my main salary crediting account (POSB) and the others can be quite easily done using internet transfers through there are daily limits. While my investible savings are also invested into equities, treasury bills and time deposits, there will still be times where I need to temporarily park my funds in savings accounts and these internet-based accounts provide a good alternative to the big three local banks traditionally savings accounts which pay very low interest rates.

If you are internet savvy, do not go to the bank counter for transactions and have one of the above banks ATMs near your home or workplace, you may want to consider opening up accounts with these as there are benefits to doing. Please do evaluate if the respect bank account is suitable for you and read the detailed fees and charges for operating, maintaining and closing such accounts.

Be well and prosper.