Singapore Inflation Rises 5.5%, Bank Deposits Interest Rates Drops

Singaporeans are experiencing a 'double whammy' recently.

Firstly, Yahoo! News reported that Singapore’s inflation have risen by 5.5 per cent over one-year period.

Read the whole article here:

Secondly, a major local bank has decreased the interest rates for savings and fixed deposit accounts.

Savings Deposit Rates

Fixed Deposit Rates

If majority of one's long-term money (money which is not needed in the short term and used for purposes such as retirement or children's education) are in such accounts, they are subject to rapidly losing their real value

A double whammy of lower interest earnings (therefore higher opportunity costs should one be able to invest elsewhere) and higher inflation (the 'purchasing power' of money shrinking).

Compounded over years, one's savings will shed half, or even more of its value. If one day you wake up and find that your bank balance has halved, would you be concerned? Definitely!

So it is high time to start taking proactive actions to preserve the value of our wealth and savings. The time is now!