While Singapore condominium prices are low, Cindy decided to scoop up a two bedroom condo in the up-and-coming xxxxxxx neighbourhood. Despite the bargain, she still needed to shuffle her finances to come up with another way to save $10,000 a year to cover mortgage payments. Her yoga club membership, the lease on her Mini Cooper and the winter vacation in Bali could all go.

But then, as the junior lawyer meditated in relaxed sitting pose, a better solution came to her: Interest Rates! Instead of cutting out these big items, Cindy can slash interest rates. Many of us pay thousands of dollars in interest rates each year – on loans, mortgages, car leases, credit cards in Singapore, and so on. The divorce attorney can also increase the interest she earns on savings and investments.

Saving money does not have to mean making major lifestyle changes. After global interest rates had fallen following the 2008 global financial crisis, many interest bearing accounts were earning lacklustre and even zero returns. Interest rates are rising, and so are the opportunities to save on, and earn higher rates.

Singapore interest rates have remained under 1 percent since 2008. In 2014, however, they began to rise and have shown even more momentum in 2015. Get ready to tally up your savings on interest rates.

6 Ways to Save $10,000 A Year on Interest Rates

  1. Open a New Savings Account – With interest rates at historic lows, many savers are earning low or no interest on their savings accounts. Many banks want to woo you with attractive interest rates. Perusing their offers could make you money. Typically, the larger the deposit, the higher the rate offered. Online sites such as iMoney Singapore make it easy to shop around. Many banks offer multi-currency savings accounts, which are popular with Singapore’s multinational citizens and can save you, even more, money on exchange rates.
  2. Switch to Higher Earning Certificates of Deposit – If you do not need immediate access to your savings, switch some of your money into fixed deposits. Like savings accounts, your principal is not at risk. However, you can earn a higher interest rate in a CD. The longer you lock in your money for, the higher the interest rate. Financial penalties apply for early withdrawal. Compare Singapore fixed deposit rates.
  3. Shop Around for Insurance – With online shopping, you could reduce your insurance fees by hundreds of dollars in as little as an hour if you use the right tools. MoneySmart Singapore is a one-stop shop for comparing premiums on all types of insurance – travel, health, life, car, and so on.
  4. Lower Credit Card and Loan Interest Rates – Shop around. Interest rates on unpaid credit card balances can range from 12 to 25 %. You could easily be paying over $100 more per each $1000. Rates on loans also can differ by more than 200% between banks. Check out the best Singapore interest rates at Deposit Singapore.
  5. Get the Best Deal on Annuities – More of us are living longer and thus facing longevity risk – that is, the risk of outliving our savings. An annuity – a type of life insurance policy – is becoming a part of many retirement portfolios. In exchange for a lump sum or fixed payments over a period, a retiree starts to receive fixed monthly payments at a certain age, say 65.Many people buy annuities from the same company as their pension plan. Better deals are often available. Compare deals before buying. If you are 30, you could be paying the annuity interest rate for 30 or 40 years before retiring and receiving income streams. A high-interest rate could add up to tens of thousands of dollars that could be invested and earning you interest. A small increase in the interest rate will lower your future monthly income payout.
  6. Use a Robo-Advisor for Investments – As interest rates rise, using robo-advisors to manage your investments could save you money and improve your returns. Robo-advisors use automated software to build a custom investment portfolio for you based on your risk profile. Some are limited to exchange traded funds or mutual funds, often proprietary, while others include stocks, bonds, commodities and real estate. The fees are substantially lower than those of financial advisors.For accounts below a certain amount, fees are often waived. These robots also perform tax loss harvesting, optimising tax obligations on profits and losses. Since these portfolios are long, they do best in a bull market. If interest rates fall, a robo-advisor could be less efficient than a human advisor. If you hold your portfolio for the long term, however, a passive robot will provide higher returns than an active investment manager. For the best advisor for your investment needs, check out this ranking of robo-advisors.

Spend an hour online comparison shopping and see how much money you can save on interest rates. Let us know how you do and if you successfully manage to save $10,000.

Read: How To Make A Million Dollars Fast

Recommend0 recommendationsPublished in Savings, FinTech
SHARE
Previous articleTop 6 Money Apps for Singapore Investors
Next articleTime Management Techniques of Successful Women
C.E.O @ The New Savvy
Anna Haotanto is passionate about finance, education, women empowerment and children’s issues. Anna has been featured in CNBC, Forbes, The Straits Times, Business Insider, INC and The Peak Singapore. She was nominated and selected for FORTUNE Most Powerful Women conference in 2016 (Asia) and 2015 (San Francisco, Next Gen). Anna has 10 years of experience in the financial sector and is currently a Director in Tera Capital. Her previous work experience includes positions at Citigroup, United Overseas Bank, a regional role in Business Monitor and a boutique private equity firm based in Shanghai. She graduated from Singapore Management University (Finance and Quantitative Finance).