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SIBOR is generally more stable while SWAP tend to fluctuate more. However 3-month SWAP has recently stayed consistently lower than 3-month SIBOR for an extended period of time. SOR is also very reactive to currency exchange rates.


Current Account Savings Account (CASA)

Current account savings account (CASA) is a phrase loosely used to refer to bank accounts opened by people or entities for transactional and saving deposits.

CASA is an industry slang used in banks to refer to such accounts.

Savings account

A savings account is basically an account for one to hold his or her savings, usually from salaries.

Money would be deposited into the account which is interest bearing.

However, it is common knowledge these days that interest earned from regular savings accounts are hardly enough to cover inflation.

They earn simple interest annually, and when left untouched, would generate compound interest.

This is why consumer accounts such as fixed deposits and structured accounts are getting more popular. They come with better interest rates but more parameters of how the accounts are to be managed.

It used to be that savings accounts were purely used by people for savings and the withdrawal of cash from ATM machines once in a while.

But in recent times, it is common for savings accounts to be tied to debit cards where account owners can use VISA or Mastercard debit cards to used for retail and online transactions which directly deduct from the balance.

They are also commonly used for GIRO transactions for things such as insurance payments, home loan repayments, income tax payments, etc.

More and more savings account created for companies are also available today.

Because savings account are no longer used for the original purposes of such accounts, consumers who want better interest bearing accounts would go for other types of accounts as mentioned earlier.

Or they would open current accounts for daily use, and keep savings account clear of most other transactions for a “cleaner” statement.

Current account

A current account is a bank account that is mainly used for transactional or operational purposes.

The main differences between current accounts and savings accounts are:

  • Non interest bearing
  • Cheque book

There are of course more differences. But the above two factors are the key ones.

Saying that, some current accounts do come with interest bearing features.

The line that separates savings accounts and current accounts (CASA) are getting thinner with each day.

This is in huge part a result of technology.

Because cheque books are not really essential these days with online banking and easy bank transfers via apps that can be done.

For consumers, only unique situations would require writing a cheque.

For example, paying an option fee for buying a house. Even that can be done with cash if the amount is not substantial.

Current accounts are more suited for companies with a lot of cash flow to manage.

This is also why they can often come with credit lines and overdrafts for users to spend more than what is available in the account.

Usage of these credit lines would of course come with interest charges.

Differences between savings account and current account

It’s best to look at a table between the two types of accounts.

Savings Current
Interest bearing Usually non interest bearing
Low minimum balance High minimum balance
No cheque book Cheque book
Few fees Fees for usage like cheques, transfers, payments, etc
Basic internet banking A host of services like payroll, accounting, phone banking, etc
More suited for consumers More suited for businesses

Opening of both types of account are usually require the same types of documents.

It also goes without saying that required documents for individuals differ from companies.

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What We Do For You

We Gather And Provide You Information On The Best Housing Loans In Singapore So That You Can Make A Better Decision Based On What Is Available In The Market

Which bank do you recommend for home loans in Singapore?

We don't recommend banks. We recommend you the best home loan that suits your profile and financial position.

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SOR rates are calculated with a complex financial formula, solved with simple algebra. The results of solving the equation therefore depends on the inputs used. Varying inputs that result from economic impacts and indicators can lead to negative value when the formula is solved. Key input indicators include USD/SGD spot rates and USD/SGD forward rates.

HDB loan or bank housing loan?

Our opinion is to always take a HDB concessionary loan if you are eligible for one. One of HDB's objectives is to to provide affordable housing for the people. While a bank is profit driven.

Which bank offers the best home loan deals?

Interest rates and spreads are not all that matter. Don't ignore the closing costs involved. Different banks can have different customized home loans for you. Don't be surprised if you will save more on a home loan that charges more interest because of the lesser closing costs involved. This is especially so if you know that you will refinance your home loan as soon as the lock in period has expired.
Want to see housing loan interest rate trends for the last 36 months?

Enter your email below so we can send it to you.

It makes absolutely no sense to pay more
than you have to on a home loan.

Find the best mortgage rates here

It makes absolutely no sense to pay more than you have to on a home loan.

Find the best mortgage rates here