This simple video shows how compounding interest can make your money grow over time.
It is always a good habit to save a percentage of your monthly pay regularly automatically.
One way to force yourself to save money is by having 2 savings account (eg. Citibank’s Stepup Account & FairPrice Plus Savings Account).
You deposit your monthly paycheck into FairPrice Plus Savings Account (main paycheck account) and then making an arrangement (Recurring Transfer Request) through Internet Banking to transfer a certain amount (eg. $200) to Citibank’s Stepup Account (pure savings account with money going in only) on a predefined date monthly.
This way, you pay yourself first and the deductions are done automatically.
FairPrice Plus Savings Account currently offers 0.5%p.a. interest on the first $50,000 while you can stepup to 1%p.a. with Citibank’s Stepup Account.