Currently, regular savings accounts pay lower interest rates, but the OCBC Monthly Savings Account (OCBC MSA) helps you to achieve your savings goals while enjoying higher interest rates.

Applying for the account is rather simple. Existing customers with an OCBC Savings or Current account can do so via internet banking (i.e. for customers with internet banking access) or mailing in an application form, which they can pick up at any OCBC Bank branch.

Accounts can also be opened by going down directly to any OCBC Bank branch, which is what those without an existing OCBC Savings or Current accounts need to do. Non-customers can also apply by mailing in their application forms, if they are unable to go down to the branch.

When applying for the account, you need to fix the regular monthly contribution that you are comfortable with. If you are making an application via internet banking or mail, the minimum monthly contribution is only S$50; otherwise, a minimum amount of S$100 would apply. The maximum monthly contribution that you can make is S$5,000.

Once you have decided your monthly contribution, this amount will remain unchanged for the next 24 months, with the first monthly contribution made on the day the account is opened.

Aside from instilling the discipline of savings by getting you started on a 24-month plan, another great incentive about the OCBC MSA is that it also offers higher than normal interest rates of 1.08 per cent per annum or 1.28 per cent per annum*, depending on the amount you set aside each month. However, the interest rate will be locked in till maturity, just like for fixed deposits, except that a fixed deposit requires you to set aside an initial lump sum savings upfront, while MSA allows you to save a smaller amount monthly.

The OCBC MSA would be ideal for those with specific objectives in mind, such as buying a car or even a diamond engagement ring, as it is a way of ensuring that you are not derailed from your objectives by impulsive purchases.

While a 24-month period has been set aside under the OCBC MSA, it does not mean that it operates like a structured deposit account.

There are no penalties imposed should you need access to your savings before the stipulated time, but this can only be done six months after opening the account. Therefore, should you happen to come across a fire sale for diamond engagement rings or decide that you are better off taking public transport instead, rest assured that you can withdraw your money before the 24-month period is up, and receive an interest rate of 0.8 per cent per annum (this interest rate is subject to change) plus the full principal.

However, there is an early termination fee of S$30, if the account is closed within 6 months from the date it is opened.

On the bright side, there is no monthly account fee or service charge even if the monthly contribution is below the minimum balance required of an ordinary savings account.

A Basic Bank Account for instance, available for customers with a monthly income of less than S$2,000, would impose a service fee of S$2 per month if the monthly average balance falls below S$500 at any point in time.

Every cent counts these days, and if you see a good deal while saving a little cash at the same time, don't hesitate to capitalise on it and enjoy the benefits.