POSB SAYE (Save As You Earn) is a special savings account that allows you to earn additional interest on your monthly savings.
The game-like mechanism compels you to save regularly every month, making it easy to start saving for students or first jobbers.
POSB SAYE account
POSB Save-As-You-Earn (SAYE)
2% (on your monthly savings after 24 months)
Singaporeans, Singapore PRs
Minimum (daily/monthly) balance
Bonus interest cap
How does the POSB SAYE savings account work?
To benefit from the POSB SAYE account, you need to already have a DBS/POSB savings/current account in which you are crediting your salary (no minimum salary amount mentioned). This primary account will be your debiting account to your POSB SAYE account, where a fixed savings amount will be deducted each month.
Which POSB/DBS savings accounts should you use as your main? We recommend the DBS Multiplier savings account — most people can easily earn 1.40% to 1.60% p.a., but the actual rate depends on your monthly transaction amount.
High Interest Rates
No minimum salary credit
DBS Multiplier Account is a deposit account with a base interest rate of 0.05% per annum
Bonus interest rates: 1.40% to 3.80% per annum. DBS Multiplier Account 2020 interest rates have been updated as of 1 August 2020
To enjoy bonus interest rates, you need to credit your salary or dividends via GIRO to any DBS/ POSB deposit account that you hold, and transact a minimum of S$2,000 on any DBS/ POSB credit card you hold, DBS/ POSB home loan monthly instalments, DBS/ POSB insurance regular monthly premium, or DBS investments. Your bonus interest rate increases if you transact in more of the above categories
Bonus interest rates for 29-year-olds and below: Credit your income and spend above S$500 via PayLah! to qualify for 0.30% bonus interest rates on your PayLah! retail spend
DBS Multiplier 2020 interest rate updates: As of 1 August 2020, interest rates have been revised for DBS Multiplier account holders with transactions in 1 and 2 categories. Refer to Bonus Interest Rate tab below to see the change in interest rates
Students, NSF, self-employed, salaried or retired individuals are eligible to apply
On the other hand, POSB SAYE automatically deducts a monthly amount each month. That way, you can develop a saving habit without lifting a finger. With the funds out of sight and out of mind in a separate account, you can’t access it easily. If you’re the type that finds it hard to keep track of your finances and have no idea where your money goes by the end of every month, this will help you save without much effort.
After 24 months, the POSB SAYE gives you a 2% bonus interest, which the bank terms “Cash Gift Interest” on top of a 0.05% base interest. Take note that this interest applies to your monthly savings only. Savings can range from $50 to $3,000 and will be automatically deducted from your primary account on a date you have selected anywhere between the 1st and 25th of each month.
Interest rate on monthly savings amount
Monthly savings amount
Interest rates (% p.a)
$50 to $290
$300 to $790
$800 to $1,490
$1,500 to $3,000
If there is a failed crediting of monthly savings account, withdrawal made, or account is closed during the month
Cash gift interest
Cons of the POSB SAYE Account
The major downside of the POSB SAYE account is that you can’t make any withdrawal for 2 years to earn the cash gift interest of 2%.
The accumulated interest will be credited into your account after 12 months and 24 months, but it doesn’t mean you can withdraw funds after 12 months. The rule of the POSB SAYE account is to make consistent deposits without any withdrawal for 2 years. This means that you need to consider the amount you want to set aside every month carefully from the get-go, since they’d be treated almost like “fixed deposits”.
If you already have the money on hand, you don’t need the POSB SAYE. You may consider depositing directly into a fixed deposit account, as some of the best rates now are over 2%. Read more: The Best Fixed Deposit Promotions in Singapore (2022).
But if you’re truly starting from zero, POSB SAYE is a good way to keep yourself accountable. It’s especially good for first job holders who are just starting to build an emergency fund.
What if you don’t have sufficient funds in your debiting account and the savings amount did not transfer into your POSB SAYE account? Fret not, the bank will send you a reminder before the transfer date to let you know of insufficient funds in your debiting account. You just need to top it up by 7pm on the day before the transfer date of your monthly savings to keep your streak going.
In the event of 3 consecutive unsuccessful transfers of your monthly savings, POSB may close your account without notice and transfer all the funds back to your debiting account.
Get additional 1% p.a bonus interest till 31/12/21
No minimum balances
No fall below fees
Simple, straightforward account
No lock-in period
Enjoy up to 0.50% p.a. on your deposits
Limited coverage of ATM islandwide (<10)
POSB SAYE vs UOB Stash — which is better?
Both the UOB Stash and the POSB SAYE require you to restrict your withdrawals and transfer money every month. But there is significant difference between the two.
The UOB Stash allows you to earn up to 1% interest on the total amount in your savings account. The only condition is that you fulfil a monthly average balance of above $10,000. Subsequently, you can maintain or increase the monthly average balance.
While the interest rate looks to be lower than that of the POSB SAYE account, the interest is applicable to your full savings amount and not just the monthly savings amount.
The UOB Stash account is good if you have overflow cash above $10,000. You can stash it away with no withdrawals and earn a decent interest.
On the other hand, the POSB SAYE account is good for beginner savers – as long as you have an existing DBS/POSB account that you are crediting your salary to. And it also encourages you to keep the practice of saving consistently to earn more interest.
0.8% on entire account balance
No multiple conditions or fall-below fees
Limited coverage of ATM islandwide (<5)
How to open a POSB SAYE account
If you already have an existing DBS/POSB savings/current account, you can apply for a POSB SAYE account via iBanking. Look for “POSB SAYE Account” under the “Special Savings Accounts” tab. If you don’t have an iBanking account, you can register for one on the DBS/POSB website.
If you don’t have an existing DBS/POSB savings/current account, one will be automatically opened for you when you apply for the POSB SAYE account. You can get instant application approval online by using your information via MyInfo.
Are you using the POSB SAYE? Tell us about your experience below.
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