Do you want higher interest rate for savings account?

Savings account interest rate has hit a new low - 0.05% pa. Nope, you didn't see wrongly. That's the interest rate most banks are offering for their savings account. Pathetic isn't it? Can't even fight inflation!

But hey, there's still hope around. Recently, there is this savings account product which caught my eye. Before I noticed this product, I park my money in OCBC (yes, OCBC again) Frank savings account (open in new window). This account is offering 0.3% pa; that's like 6x more than the usual savings account. Other than the higher than usual interest rate, there is another feature this account is offering which I like. Well, I might talk about this another time, since this is not the main point.

So, what is that product which caught my eye? It is the CIMB StarSaver Savings Account (open in new window). What's so special? The interest rate! CIMB is offering 0.5% pa interest for this StarSaver Savings Account. 10x higher than the usual savings accounts from other banks!

What's more, you can get 0.8% pa interest if you make a monthly top-up of $100 to your account. No gimmicks or whatsoever. The only thing to look out for is you need an initial deposit of $1,000 and if you close your account within 6 months, there will be a fee levied (quite standard across the banks).

For me, it is the best place to keep your money (we are not talking about investment or anything, just pure savings). Save $100 per monthy, and you can get 0.8% pa interest. Isn't it good?

And with this account, one can be more disciplined in terms of saving money. You see, CIMB has a very poor network of banking facilities (sorry, CIMB) in Singapore -- only two branches (Raffles Place and Orchard) and I think ATM machines are available at the two branches only (not part of ATM5 network). So, it is quite hard to withdraw money (unless you transfer money using their internet banking).

Look no further, this CIMB StarSaver Savings Account is probably the best, at least in terms of interest rate. Don't even bother looking at Fixed Deposits, I find it a joke that banks are offering lower interest rates for their FDs than this account!

Oh ya, you might ask, "Never heard of CIMB, is it safe?" If you hadn't know, "Deposit accounts held by individuals and charities are insures by the Singapore Deposit Insurance Corporation for up to amounts as may be required under, and subject to the Deposit Insurance Act 2005 (Act 31 of 2005)." If in any case the bank fails, your first $50,000 with that bank will be safe :)

Please visit http://www.cimbbank.com.sg/index.php?ch=sg_per_st&pg=sg_per_st_cur&ac=15&tpt=cimb_sg  (open in new window) for more info.