CIMB FastSaver used to be one of the best savings account out there. The reason is simple. There are no multiple conditions to fulfill such as salary credit, investments with CIMB or taking up any loan from the bank. The savings account offers you a high 1% interest rate p.a. for the first S$50,000.
The simplicity and high interest rate is the reason that I opened the CIMB FastSaver account. However, good things are coming to an end. CIMB is revising the interest rates for its FastSaver account with effect from 15th July 2020 onwards.
Below are the revised interest rates.
|Account Balance||Prevailing Interest Rates (%p.a.)||Interest Rates from 15th July 2020 (%p.a.)|
Why is CIMB revising interest rates?
The central banks globally have reduced interest rates to prevent further slowdown in economic growth due to the COVID-19 outbreak. In line with the revision of both the Singapore Interbank rates and global interest rates, CIMB are revising the interest/profit rates for their Singapore Dollars (SGD) Accounts.
Are there alternative financial instruments with higher interest rates?
Yes, there are. I have previously wrote about the Singlife Account. Singlife Account is an insurance savings plan that was launched in November 2019. There are no monthly fees, no regular top ups required and no lock in period.
You get 2.5% per annum for the first S$10,000 deposited. This interest rate of 2.5% per annum is not guaranteed and may also change like CIMB FastSaver in the future. The next S$90,000 earns you 1% per annum. Anything above S$100,000 does not earn you any interest.
|0 %||Above S$100,000|
|1% p.a.||Next S$90,000|
|2.5% p.a.||First S$10,000|