So if you do not want your money tied up in a fixed deposit for 1 year, where can you park your money for easy transfer? Wouldn’t it be great if there is an account that gives you extra interest for crediting your salary every month and allow your money to grow? After doing our research, we have compiled a list of savings/current accounts that gives you additional interest if you follow the requirements and top up the minimum every month. For the uninitiated, current account comes with a chequebook and a savings account does not. Citibank was the first to come up with the Step-Up Interest program, but this has since fallen from grace since the interest rates are pathetic. The flavour of the month has to be DBS/POSB , since it has a current promotion of 0.25+3%. All you need to do is park a minimum of $800/month and not withdraw for the next 6 months. What’s more, there are no account charges.Otherwise, CIMB would be something to consider as well.
*Updated 15/1/13 2347H – As pointed out by one reader, for the DBS/POSB promotion, the 3% bonus interest is only for the amount that you put in for that month and NOT for your entire balance. Meaning if you put in $800, you get $800*3%*30/365 = $1.97 for that month. Check out the link here for more details