CIMB FastSaver: What Are The Changes in July 2020?
209
shares

CIMB FastSaver: What Are The Changes in July 2020?

Kenneth Fong
209
shares

Ah… the CIMB FastSaver Account.

CIMB Bank Logo

A favourite of many freelancers, the self-employed, couples looking to grow their money in a joint account.

And generally, people who want a high-interest savings account that is relatively fuss-free.

But alas…

COVID-19.

Economy bad.

Interest rate not good.

Yada yada yada.

You know the whole spiel by now…

PSA: there will be changes made to the CIMB FastSaver Account come 15 July 2020.


TL;DR: Changes to CIMB FastSaver from 15 July 2020

Seedly CIMB FastSaver July Change

RequirementsBefore 15 July 2020After 15 July 2020Changes in 2020
First $50,0001.00% p.a.0.50% p.a.-0.50% p.a.
Next $25,0001.50% p.a.0.80% p.a.-0.70% p.a.
Next $25,0001.80% p.a.1.50% p.a.-0.30% p.a.
Above $100,0000.60% p.a.0.40% p.a.-0.20% p.a.

The CIMB FastSaver’s interest rates requirements are really straightforward.

There’s no:

  • salary crediting
  • bill payments
  • credit card spend
  • investment purchases
  • monthly fees

It’s kinda like the Standard Chartered JumpStart — which, unfortunately, also just revised its interest rates.

Just put your money in there and let it grow.

And just like the JumpStart, the FastSaver will also be slashing its interest rates too.

While it used to give up to 1.80% p.a. interest on the first $100,000 in your account.

It’ll only give you up to 1.50% p.a. interest on the same amount, come 15 July 2020.


Is it Still Worth Opening a CIMB FastSaver Account After 15 July 2020?

The greatest thing about the CIMB FastSaver (pre 15 July 2020) is that it gives you fuss-free 1% p.a. interest on your first $50,000.

Without the need for you to jump through 3,549,312 hoops.

And that’s really decent considering you can take it out anytime you want with no penalties incurred (read: high liquidity).

Very ideal for say… an engaged couple wanting to earn a little bit of interest on their joint savings for an upcoming wedding.

Arguably, your fixed deposit rates might be higher, but you’d probably have to wait out a 1-year or 2-year tenor.

Heck, even holding the latest Singapore Savings Bonds till maturity, 10 years later, still gives you less.

July Singapore Savings Bonds

HOWEVER.

This revision of interest rates basically nerfs most of the merits of the CIMB FastSaver, which I’ve pointed out so far.

Because after 15 July 2020, your first $50,000 will only score you 0.50% p.a. interest.

Okay lah, you can still take it out anytime without incurring a penalty.

.

.

.

Assuming you have the full $100,000 to leave in your CIMB FastSaver account.

And you don’t wish to put it into anything high-risk where you might potentially lose your principal.

You’d be earning $1,325 interest per year.

After 15 July 2020, that drops to $825 per year.

It’s still decent but as compared to what you used to be able to get… that’s a $500 difference.

Or a hundred $5 cai png meals (read: can order a slice of steamed fish that kind)

Mr Krabs Shocked Face On TV
Source: SpongeBob SquarePants | Giphy

Long story short?

Unless you have a high amount of capital to leave in your FastSaver, you might want to shop around first before committing.

Should I Switch out of My CIMB FastSaver Savings Account?

It wasn’t too long ago when I pit the CIMB FastSaver against the Standard Chartered JumpStart.

Seedly Standard Chartered JumpStart July Change

Since both are no-frills savings accounts which give pretty decent interest rates — a rare commodity in this day and age.

Assuming you only have that $50,000 to work with.

When the revised interest rates kick in, in July 2020.

It’s a no brainer that the JumpStart’s 1% p.a. (on the first $20,000) easily beats the FastSaver’s 0.5% p.a. (on the first $50,000).

So what you can do is leave the first $20,000 in the JumpStart.

Note: this option is only available if you’re below 26 years old due to the JumpStart’s age requirements

And seek alternatives that give you higher than 0.5% p.a. for the remaining $30,000.

BUT WAIT.

If you’ve just opened your CIMB FastSaver account, don’t be too hasty about withdrawing all of your savings and closing it.

Because there is an early closure fee of $50 if your account has only been opened for less than 6 months.

I guess what I’m trying to say is…

If you’re 26 years and below, there’s no harm opening a Standard Chartered JumpStart account to enjoy 1% p.a. on your first $20,000.

If you’re older than that, then…

How about trying out our FREE Savings Account Calculator to find out which is the best high-interest savings account for you?

Try lah

It’ll only take you less than a minute.

About Kenneth Fong
Owner of a 4-room HDB BTO and married to a financial clutz. Probably the closest to an adult you can find on the Seedly team.
You can contribute your thoughts like Kenneth Fong here.

Still have more questions after reading the article? Fret not, ask our community here!

Stay updated with the latest finance tips!
Receive bite-sized finance on Telegram here.

What's Popular

    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles
Comments
209
shares

What's Popular

    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles

Still have more questions after reading the article? Fret not, ask our community here!