In one of my earlier posts, i had pointed out that low interest rates are one reason why super-high-saving Sgeans do not seem to have enough at retirement.
I was motivated to save consistently by POSB’s My Savings Account. Interest rates for at least $1500 a month was at about 1.5% p.a. Of cos, i cant afford that monthly contribution. At a much lower amount manageable to me, the rate was still a decent 1.00% p.a.
Today, checked my acct online and was wondering why my interest accrued for this month was so much lower than last month - even though adding in this month’s contribution, i shd logically be earning more. Found that the rate had dropped from 1.00% to … 0.40%! The highest rate was 0.6%.
This is ridiculous! High yield accts in the US were giving as much as 3.5% p.a. before the crisis when Sg rates were like 1%. With inflation usually above 3% (and over 6% last year), $ in the bank is actually losing value!
Guess i shd head out to the designer boutiques soon then.