Nowadays, the list of bank accounts in Singapore is very large, and it is sometimes difficult to choose a bank that will keep money safe and give good conditions for deposits. This article will help you understand what a deposit account is and how to choose one.
What are Deposit Accounts?
Deposit accounts are accounts held by the bank with a customer to receive deposits or other repayable funds. They include:
Current deposit accounts, the current account is held at an institution and allows the account holder to deposit funds, make withdrawals, and receive electronic payments.
- Savings accounts
A savings account is a bank account where you deposit money that you don’t plan on spending for the foreseeable future. You can withdraw it at any time, but there may be a fee for doing so.
- Fixed deposits
A fixed deposit account is an investment you make with a financial institution. You agree to keep your money in the account for a specific time, and in return, you are rewarded with a higher interest rate than what you would earn on a regular savings account.
- Recurring deposits
A recurring deposit is an account that allows you to set up a fixed amount of money to be transferred from your bank account to a savings account on a weekly, monthly or even annual basis.
How to Choose the Best Deposit Account
When choosing a deposit account, there are certain things to consider. You should evaluate:
- The minimum balance required to open the account
- The fees for late-payments
- Early withdrawal terms, and
- Standard withdrawal conditions.
You should also consider the different products offered by the bank in case you need to change products in the future.
The best way to find the right deposit account for your needs is to compare what each account offers. Once you have identified the deposit account product that seems like a good fit, call or visit the bank directly and ask questions to learn more about their policies and procedures.
To simplify your search, you can visit https://www.ocbc.com/personal-banking/deposits and choose a deposit account to match your needs.
Benefits of Deposit Accounts
A deposit account is a simplest and safest way to keep your money. The interest rates can be relatively lower, but these accounts still have some benefits to offer:
- High liquidity
When you open and maintain a deposit account, you can easily withdraw your money whenever you need it- even if you are not going through a financial crisis. Money in a deposit account is like money in your nearest ATM or your checkbook.
- High level of security
In Singapore, deposit accounts are insured by the Singapore Deposit Insurance Corporation. In the unlikely event that the financial institution holding your deposit account fails, you will receive the full value of your account, thanks to the SDIC’s backing.
- Low minimum balance requirements
Many deposit accounts have a low minimum threshold, meaning you have access to most of the funds in the account. Furthermore, even if the minimum balance is relatively high, you are only charged a small fee if your balance falls below the minimum threshold.
- They are suitable for most people
Deposit accounts are suitable for most people. The reason is that they are simple products with non-complicated requirements and are easy to understand. So, as long as you have some amount to save, a deposit account will perfectly suit your needs.
Deposit accounts are one of the most popular personal banking products in Singapore. Among their benefits are high liquidity, high security, and low minimum requirements that make them suitable for almost everyone. If you are looking for an easy and safe way to keep your money, deposit accounts are the way to go.