< BACK TO MAIN BLOG

Which Regular Savings Plan Is The Cheapest? POSB vs OCBC vs POEMS vs Maybank Kim Eng

2 min read

Greatest misconception amongst Singaporeans

Here’s one of the greatest misconception amongst Singaporeans.

” I need to save up a huge amount to be able to start investing.”

This is true in the past when one requires quite a substantial amount of capital before making his first investment. However, with the Regular Savings Plan (RSP), that argument is no longer valid. With as little as $100 month, average Singaporeans with little knowledge of investing can park a portion of their income with some of the safer options.


TL;DR: Which Is The Best Regular Savings Plan?

There are 3 factors to consider before deciding on the best Regular Savings Plan:

  • What are the shares counter available for each of the Regular Savings Plan?
  • What are the fees and charges for each of the Regular Savings Plan?
  • Which Regular Savings Plan is the cheapest when it comes to the investment amount?

What Is Regular Savings Plan?

A Regular Savings Plan is one of the recommended options for investors who are new to investing.

This plan allows one to invest a fixed amount into a variety of Singapore blue-chip stocks or an Exchange Traded Fund (ETF) that tracks the Straits Times Index (STI).

By allowing a constant monthly investment, the Regular Savings Plan allows an investor to dollar-cost average their investment. When prices of the stocks are low, the investor will automatically be purchasing more with his fixed amount of investment, and lesser, when stock prices are high.

The Regular Savings Plan is designed for long-term investors and the best solution to average Singaporeans like us who do not have the knowledge, discipline and patience to monitor the stock market closely.

Where can you set-up a Regular Savings Plan?

There are currently a few institutions providing such monthly investment plans.

In the tables below, we compare these plans for our readers:

Firstly, the financial institutes that provide Regular Savings Plan are:

  • OCBC Bank
  • POSB Bank
  • Maybank
  • Philip Capital
Bank/ Financial InstituteName of Regular Savings PlanInvestment Products Available on RSP
OCBC BankBlue Chip Investment Plan
19 Share Counters including:

Nikko AM STI ETF
OCBC
Comfort DelGro
POSB BankInvest-SaverNikko AM STI ETF

ABF Singapore Bond Index Fund
MaybankMonthly Investment Plan30 Companies of the Straits Times Index (STI)

Nikko AM STI ETF

SPDR STI ETF

More than 200 share counters across 5 markets ( Singapore, USA, Hong Kong, Malaysia and Thailand)
Philip CapitalShare Builder Plan29 Share Counters including:

STI ETF

ABF Singapore Bond Index Fund

Singapore Airlines (SIA)

 

What are the fees and charges for Regular Savings Plan?

Each Regular Savings Plan incurs different fees and charges on investors. The fees and charges incurred come in form of a percentage of the amount invested or a fixed amount based on investment sum.

Here’s a comparison of the fees and charges for each Regular Savings Plan:

Bank/ Financial InstituteName of Regular Savings PlanFees and charges
OCBC BankBlue Chip Investment Plan
0.30% of the total investment amount
or
$5 per counter, whichever is higher
POSB BankInvest-Saver1% for Nikko AM STI ETF
or
0.5% for ABF Singapore Bond Index Fund
MaybankMonthly Investment PlanInvestment amount below $1,000: 1% (minimum $1)

Investment amount above $1,000: 0.18% (minimum $10)
Philip CapitalShare Builder PlanInvestment amount below $1,000:
$6 (1-2 counters)
$10 (Above 2 counters)

Investment amount above $1,000:
0.2% or $10 whichever is higher

With this, we went on to compare the cost depending on the different amount you wish to invest monthly.

Read also: Regular Savings Plan: The Piggy Bank For Working Adults

Which Regular Savings Plan Is The Cheapest Based On Investment Amount?

To help Singaporeans make a better decision when choosing the cheapest Regular Savings Plan for the amount they plan to invest in, we compare these plans to find out who is the cheapest.

Bank/ Financial InstituteName of Regular Savings PlanFees and charges
OCBC BankBlue Chip Investment Plan
Less than $500: $5
$500 - $1,000: $5
Above $1,000: $5 (unless amount more than $1,700)
POSB BankInvest-SaverLess than $500: $5 or lesser (STI ETF)
$500 - $1,000: $5 - $10
Above $1,000: More than $10
MaybankMonthly Investment PlanLess than $500: $5 or lesser
$500 - $1,000: $5 - $10
Above $1,000: More than $10
Philip CapitalShare Builder PlanLess than $500: $6
$500 - $1,000: $6 - $10 (Cheaper for 2 counters)
Above $1,000: More than $10 (Allows multiple counters)

 

In conclusion, for investment lesser than $500, POSB Invest-Saver and Maybank Monthly Investment Plan will be what you should look at.

For amount $500 to a thousand, OCBC Blue Chip Investment Plan will be the way to go, however, if you are going for 2 counters, Phillip’s Share Builder Plan will be cheaper.

Any investment above $1,000 and less than $1,700 will be cheapest with OCBC unless again, you are looking at multiple counters.

Guides For Every Lifestage

Seedly understands that each phase in life requires different personal finance needs and risk appetite. With that, we compiled our articles into guides to help you out.

Comments