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POSB Everyday Savings Account: Best for Low Income Adults

Savings Account for Low Income Individuals & Full-Time NSFs

POSB Everyday Savings Account: Best for Low Income Adults

Savings Account for Low Income Individuals & Full-Time NSFs

3.5/5.0

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Pros

  • Low income consumers and full-time NSFs
  • People looking to avoid added fees and requirements
  • Individuals who cannot maintain a S$500+ balance

Cons

  • Salaried adults with steady income
  • Young adults under 26 years old
  • People who can maintain a balance of at least S$500

Low income adults will find no better savings account than POSB Everyday Account. In fact, a variety of people can benefit–NSFs, individuals younger than 26 years old or older than 60 years old, on public assistance, or opening their first POSB account online are all exempt from the minimum balance requirement of S$500. Additionally, there's no minimum initial deposit requirement, making the account easy to open. Consumers earn 0.05% p.a. interest on their entire balance, which is somewhat competitive for those with low balances looking to avoid fees. Overall, POSB Everyday Savings Account is set to benefit those who maintain balances below S$500, including full-time NSFs (who for the most part, aren't offered fee waivers elsewhere).

ProsCons
  • No min. initial deposit requirement
  • Fall-below fee waived for full-time NSFs, people below 26 or above 60 years old, public assistance recipients, or those opening their 1st POSB account online
  • Low 0.05% p.a. interest rate w/ no boosts
  • Consumers outside waiver must pay S$2 fall-below fee (for balances below S$500)
Promotion: None currently available
Pros & Cons
Pros:
  • No min. initial deposit requirement
  • Fall-below fee waived for full-time NSFs, people below 26 or above 60 years old, public assistance recipients, or those opening their 1st POSB account online
  • Promotion: None currently available
Cons:
  • Low 0.05% p.a. interest rate w/ no boosts
  • Consumers outside waiver must pay S$2 fall-below fee (for balances below S$500)

What Makes POSB Everyday Savings Account Stand Out

If you're a low income adult likely to maintain a balance below S$500, look no further than POSB Everyday Savings Account. To begin with, there's no minimum initial deposit requirement, making it fairly easy to open an account. Additionally, while there's a S$500 minimum balance requirement, fall-below fees are waived for a variety of individuals: people younger than 21 years old or older than 60 years old, public assistance recipients, people opening their first POSB account online, and full-time NSFs. These features, overall, make POSB Everyday Savings Account quite accessible.

POSB Everyday Savings Account Interest Rates

Rate TypeDetails & RequirementsInterest Rate
Base Rate
  • No requirements
0.05% p.a. on entire balance
Max Effective Interest Rate:0.05% p.a. (at any balance)
Promotional rates, if any, are not included
POSB Everyday Savings Account Interest Rates
Base Rate: No requirements
  • 0.05% p.a. on entire balance

Nonetheless, it's important to note that account holders earn just 0.05% p.a. interest on their entire balance. This rate aligns with the market norm for a base rate–however, most accounts offer bonuses that elevate earnings beyond this base. POSB Everyday Savings Account does not offer bonus rates, which means individuals with moderate-to-high balance sizes will earn more elsewhere.

Consumers with lower incomes or who aren't capable of maintaining consistent balances can greatly benefit from POSB Everyday Account, however. Most savings accounts have minimum balance requirements of S$500+ and charge fall-below fees of S$2 for the month. In most cases, the fees associated with falling below the minimum are greater than any interest accrued, resulting in a nett loss. With POSB Everyday Account's fee-waiver, however, it's possible to avoid such loss while continuing to accrue interest.

Impact of Fall-Below Fees on Monthly Interest Earned for Low Income Consumers

Account DetailsPOSB EverydayRHB High YieldOCBC Frank (26yo+)
Minimum Balance Requirement(waived)S$500S$1,000
Fall-Below FeeN/AS$10S$2
Base Interest Rate (% p.a.)0.05%0.08%0.20%
Interest Earned (on S$450 balance)S$0.02S$0.03S$0.08
Nett After FeeS$0.02-(S$9.97)-(S$1.92)
Account details apply to low-income individuals on public assistance, above 26 years old (OCBC Frank waiver does not apply). Rates based on S$450 balance size

Ultimately, while young adults have access to no-fee alternatives (like OCBC Frank Account), low income adults are best off with POSB Everyday Savings Account. Not only is it possible to avoid extra costs regardless of balance size, it's also possible to continue earning interest along the way.

POSB Everyday Savings Account Details & Requirements

Details & Requirements
Minimum Age Requirement16
Minimum Initial DepositS$0
Minimum Balance RequirementS$500
Fall-Below FeeS$2 (Waived if less than 21 or greater than 60 years old, recipient of public assistant, full-time National Service man or if it’s the applicant's 1st account with POSB)

How Does POSB Everyday Savings Account Compare to Other Accounts?

Read our comparisons of POSB Everyday Savings Account with other savings accounts and learn what makes each account unique in its own way. We compare and contrast each account to help you to identify which best suits your needs.

POSB Everyday Savings Account offers a low maximum effective interest rate, but is one of the few accounts accessible to low income individuals

POSB Everyday Savings Account v. OCBC Frank Savings Account

Consider this if you're a young adult looking for a fee-free starter account
  • Min. Age Requirement
    • 16
    • Min. Initial Deposit
      • S$0
      • Min. Balance Requirement
        • S$0 if younger than 26 years old, S$1,000 for 26+

        If you're a young adult thinking of starting your first savings account–but don't want to worry about requirements and fees–OCBC Frank Savings Account may be the right option for you. Consumers as young as 16 years old can apply, and there are no minimum initial spend requirements. Even further, account holders under 26 years old are exempt from minimum balance requirements and associated fall below fees. Overall, OCBC Frank Savings Account is both low-risk and low-maintenance for young adults.

        OCBC Frank Account is also easy to manage and understand. Consumers earn 0.20% p.a. on the 1st S$25k in their account, 0.30% p.a. on the next S$25k, and 0.05% p.a. on amounts beyond S$50k (essentially, the base rate). These rates are quite competitive compared to other no-fee, requirement-free accounts. Nonetheless, this account loses its edge for low income individuals above 26 years old; such individuals might instead consider POSB Everyday Savings Account.

        Rate TypeDetails & RequirementsInterest Rate
        Base Rate
        • No requirements
        • (Rate varies according to band of balance)
        0.20% p.a. on 1st S$25k
        0.30% p.a. on next S$25k
        0.05% p.a. above S$50k
        Max Effective Interest Rate:0.25% p.a. (at S$50k balance)
        Promotional rates, if any, are not included
        OCBC Frank Interest Rates
        Base Rate: No requirements (varies according to band of balance)
        • 0.20% p.a. on 1st S$25k
        • 0.30% p.a. on next S$25k
        • 0.05% p.a. above S$50k
        Max EIR: 0.25% p.a. (at S$50k balance)

        POSB Everyday Savings Account v. CIMB StarSaver Savings Account

        Consider this if you're a young professional seeking a starter account
        • Min. Age Requirement
          • 16
          • Min. Initial Deposit
            • S$1,000
            • Min. Balance Requirement
              • N/A

              CIMB StarSaver Savings Account is likely the easiest starter account for young professionals, minimising risk while also providing competitive interest rates. Account holders earn a flat 0.80% p.a. on their entire balance, regardless of size, which is substantially higher than the standard market standard base of 0.05% p.a. Additionally, there is no minimum balance requirement and therefore no fall-below fees, making the account both low risk and low maintenance. Nonetheless, only balances above S$1k earn interest, and an initial deposit of S$1k+ is required. For these reasons, very low income individuals may find CIMB StarSaver Account a bit less accessible. In this case, POSB Everyday Savings Account, which has no initial deposit and no minimum balance requirements, may be a better alternative.

              Rate TypeDetails & RequirementsInterest Rate
              Base Rate
              • No requirements; applied to entire balance
              0.80% p.a.
              Max Effective Interest Rate:0.80% p.a. (at any balance)
              Promotional rates, if any, are not included
              CIMB StarSaver SA Interest Rates
              Base Rate: No requirements (applies to entire balance)
              • 0.80% p.a. on entire balance
              Max EIR: 0.80% p.a. (at any balance)

              POSB Everyday Savings Account v. RHB High Yield

              Consider this if you want an easy-to-use account and have moderate savings
              • Min. Age Requirement
                • 18
                • Min. Initial Deposit
                  • S$1,000
                  • Min. Balance Requirement
                    • S$1,000

                    RHB Yield Savings Account is an easy-to-open option with a very simple interest rate structure. Consumers can open an account without making a minimum initial deposit, and subsequently can earn up to 0.91% p.a. EIR (though this is achieved at S$100k balance). A lower balance, below S$10k, earns at 0.08% p.a., which is still higher than the 0.05% p.a. base rate offered by some competitors. Nonetheless, there is a S$500 minimum balance requirement paired with a very high fall-below fee of S$10. At this cost level, falling below S$500 would actually lead to a substantial loss for account holders. As a result, those who are unlikely to maintain a balance of S$500+ would definitely benefit more from POSB Everyday Savings Account.

                    Rate TypeDetails & RequirementsInterest Rate
                    Base Rate
                    • No requirements (Rate varies according to
                    • band of balance)
                    1.05% p.a. on 1st S$50k
                    1.55% p.a. on next S$25k
                    2.00% p.a. on next S$25k
                    0.60% p.a. beyond S$100k
                    Max Effective Interest Rate:1.41% p.a. (at S$100k balance)
                    Promotional rates, if any, are not included
                    RHB High Yield SA Interest Rates
                    Base Rate: No requirements (rate varies according to band of balance)
                    • 1.05% p.a. on 1st S$50k
                    • 1.55% p.a. on next S$25k
                    • 2.00% p.a. on next S$25k
                    • 0.60% p.a. beyond S$100k
                    Max EIR: 1.41% p.a. (at S$100k balance)
                    Carrie Arndt

                    Carrie is a Senior Analyst at ValueChampion, helping consumers find the best credit cards and other financial products based on quantitative and qualitative analysis. She previously led consumer studies worldwide as a Senior Research Executive at MMR Research, and led development & operations and BellaVetro. She attended Duke University and Penn State University, graduating with a degree in Political Science and Government. Her work has been featured on a variety of major media such as Yahoo Finance, Asia One, Buro, Zuu Online and more.