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Should I leave my money in a savings account? 

19 December 2022 | 2-mins read

Is simply leaving my money in a regular savings account really a bad idea?

A savings account is nothing new to everyone. The first thing you’ll probably do when you get your first job is to open a savings account to credit your salary. As a pair of newly-weds, you will also probably open a joint savings account with your partner to handle household expenses. When you become a parent, you may also open a savings account under your child’s name to save up for his/her education.  

What is a savings account and what are its benefits?  

A savings account is an interest-bearing deposit account held at a bank or other financial institution1. As they pay interest while keeping your funds easily accessible, they’re ideal for building your emergency fund. It also inculcates discipline to help you reach your financial goals when you deposit a fixed amount into the account regularly. 

Why having a savings account alone is not sufficient?  

Unfortunately, just by relying on your savings account might not be able to meet your future needs. The value of your money will diminish, due to inflation. As at August 2022, inflation is at 7.5%2, increasing from 7.0%2 in the prior month. This was the fastest rise in consumer prices since June 2008, with food prices rising the most in near 14 years2. With rising inflation, it is important to find ways to make your money work harder for you. 

How do I make my money work for me? 

There are many ways to make your money work harder for you. One way is to place your funds in savings account with higher interests. You can also consider insurance savings plan which combines both savings and insurance components.

Manulife IncomeGen (II)

Provides you a stream of monthly income up to age 120

And of course, another way is through investments. “Investment” is a word that tends to make some people nervous. It isn’t surprising, seeing how risky investments have hurt the world economy on more than one occasion. But not all investments are created equal, and you can build a portfolio that suits your needs and risk appetite. Find out why you should invest and how to get started here.

Should you save or invest?  

The simple answer is both. Saving and investing are important parts of a financial plan. Saving is the fundamental block to helping you achieve your financial goal. It also forms your emergency fund which provides a safety net for unexpected expenses. While investing may help to protect your money against inflation, there are no guaranteed returns and you will need to bear the full investment risk. 

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    3. Lifetime monthly income consists of guaranteed and non-guaranteed monthly income. Guaranteed monthly income is equal to 0.81% of the sum insured divided by 12. Based on illustrated investment rate of return of 4.25% p.a., non-guaranteed monthly income is equal to 2.43% of the sum insured divided by 12, and based on illustrated investment rate of return of 3.00% p.a., non-guaranteed monthly income is equal to 1.17% of the sum insured divided by 12. 


    Important notes:

    Manulife IncomeGen is underwritten by Manulife (Singapore) Pte. Ltd. (Reg. No. 198002116D). This advertisement has not been reviewed by the Monetary Authority of Singapore. Buying a life insurance policy is a long-term commitment. There may be high costs involved if you terminate the policy early, and your policy's surrender value (if any) may be zero or less than the total premiums paid. This article is for your information only and does not consider your specific investment objectives, financial situation or needs. It is not a contract of insurance and is not intended as an offer or recommendation to purchase the plan. You can find the full terms and conditions, details, and exclusions for the mentioned insurance product(s) in the policy contract.

    This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the LIA or SDIC websites ( or

    We recommend that you seek advice from a Manulife Financial Consultant or our Appointed Distributors before making a commitment to purchase a policy.

    Information is correct as at 19 December 2022.

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