9 E-Wallets In Singapore That Let You Buy From Shops Hassle-Free

Aside from the explosion of rock music and big curls in the 80s, we were introduced to the cashless payment method called the General Interbank Recurring Order (GIRO). GIRO enabled its users to make convenient payments to billing organizations through their bank accounts. Since then, the digital cashless payment options have evolved dramatically. Nowadays, we can purchase items on online stores with a few taps of a button!

Let us get to know the nature and the examples of the e-wallets in Singapore.

HOW E-WALLETS WORK

Electronic wallets, e-wallets, digital wallets, or mobile wallets have taken over our lives in the previous months due to the effects of the global pandemic. E-wallets are virtual wallets, which are in collaboration with financial institutions (e.g., UOB or DBS), mobile service providers (e.g., SingTel), and international companies (e.g., Apple, Google, and Samsung). Many people have turned to cashless transactions to avoid carrying money or to avoid trips to the ATM.

E-wallets allow its users to store credit cards, debit cards, and loyalty cards into your device. Payments are made hassle-free as long as they are connected to your bank accounts or cards. Some e-wallets let you send and receive money through paperless transactions.

THINGS TO CONSIDER BEFORE USING AN E-WALLET

1. Which e-wallet do you want to get?

2. Does your preferred e-wallet have a maximum value that can be stored inside?

3. What is the expiry date for the money inside your potential e-wallet?

4. How much is the maximum value you can transfer out from an e-wallet per transaction?

5. Are there fees involved in top-up and other services?

POPULAR E-WALLETS IN SINGAPORE

1. Apple Pay

Apple Pay handles secure payment transactions between contactless terminals and Apple iOS devices. It can be used in 7-Eleven, Breadtalk, Giant, FairPrice, Uniqlo, and so much more.

2. SingTel Dash

Dash allows you to top-up your Singtel prepaid account or other Dash accounts to pay partner merchants in Singapore, Thailand, and Visa payWave partner merchants worldwide. You may pay online purchases through the Dash Visa Virtual Account and transfer funds within Singapore and to India, Indonesia, Philippines, China, Myanmar, and Bangladesh.

3. GrabPay

As the name suggests, GrabPay can be used to pay for Grab rides, GrabFood deliveries, and selected merchants with the GrabPay QR code. You can also use it with the GrabPay Card where MasterCard is accepted.

4. FavePay

FavePay is a quick and easy way to pay your favorite merchants and get instant cashback. FavePay accepts debit or credit cards (e.g., Visa, MasterCard, and American Express), GrabPay, Paypal, Boost Payment, and Air Asia Big Points. You can use the FavePay for selected merchants with the FavePay QR code.

5. AliPay

AliPay is a global payment platform with over 400 million users around the world. It is backed by the Chinese tech giant Alibaba and uses advanced encryption technology to ensure personal information and online payments are secured. It can be used to cover payments to ComfortDelGro and Prime taxis, Resorts World Sentosa, Metro, Singapore Zoo, Universal Studios, and more.

6. Google Pay

Google Pay is an online payment system developed by Google. It enables its users to pay for transactions with Android devices in-store and on supported websites. You can use it in-store at more than 80,000 checkout counters such as Cheers, Cold Storage, 7-Eleven, NTUC, McDonald’s, and Uniqlo.

7. DBS PayLah!

DBS PayLah! is a personal virtual wallet, which allows you to perform transactions such as Scan and Pay (NETS), funds transfer, QR Code payments, online purchases, and bill payments on-the-go. Discover its functions through the DBS PayLah! app.

8. NETSPay

NETSPay enables you to register your POSB/DBS ATM Card digitally. Once you have stored your cards, you may leave it at home and start paying with your smartphone. You can use this digital wallet to pay selected merchants in Singapore and Alipay Connect-enabled merchants in Japan.

9. EZ-Link Wallet

EZ-Link Wallet is personal mobile wallet within the EZ-Link app. You can use it to make payments conveniently at retail outlets domestically and overseas by scanning a QR Code or at an Alipay Connect-enabled merchant. Moreover, you can earn EZ-Link Rewards points for your transactions.

Image Credits: unsplash.com

Use these information to make thoughtful decisions when it comes to your e-wallet and online payment transactions.

Sources: 1 & 2

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Singapore Will Cease Issuing S$1,000 Notes Next Year

This month, the Monetary Authority of Singapore (MAS) announced that it plans to discontinue the issuance of the S$1,000 notes from January 1, 2021. A limited quantity of this note will be made available each month from now until December 2020.

How will this affect you? What are the implications of this decision?

#1: SAFETY MEASURE TO REDUCE THE MONEY LAUNDERING RISKS

According to MAS, this is a pre-emptive measure to mitigate the higher money laundering and terrorism financing risks associated with large denomination notes. Large denomination notes allow people to carry significant values of money anonymously. The anonymity attached to these notes can be used to facilitate money laundering and other illegal activities.

#2: ELECTRONIC PAYMENTS ARE HIGHLY ENCOURAGED

To reduce your health and financial risks, it is best to use electronic payments whenever possible. MAS encouraged the use of electronic payments. Moreover, National University of Singapore’s Associate Professor and CGIO director Lawrence Loh highlighted that electronic payment systems are more secure than cash, despite the cyber-risks associated with online payments.

He said that: “You are able to secure two things with e-payments. Firstly, in terms of technical security, you can trace where your money is going, and secondly, you have physical security because you don’t have to carry large amounts of cash.”

#3: EXISTING S$1,000 NOTES IN CIRCULATION WILL REMAIN LEGAL TENDER

According to MAS, existing S$1,000 notes in circulation can still be used as a means of payment. They will continue to remain legal tender and can be used by the banks. To adapt to the upcoming demands of other denominations (particularly the S$100 note), MAS will make sufficient quantities of other denominations available.

#4: THE SELLING PRICE OF THE S$1,000 NOTE WILL LIKELY INCREASE

Currency collectors and dealers acknowledged that the selling price of the S$1,000 note will likely increase due to the limited supply of this note in the upcoming year. However, the currency dealers and collectors interviewed by TODAY have predicted that it will not increase dramatically.

You see, most people gravitate towards collecting notes of smaller denominations. For instance, a S$1,000 note from the orchid series (issued from 1967 to 1976) is worth around S$2,000. In contrast, a bundle of 1,000 S$1 notes from the same series is worth about S$12,000. It is amazing how these items have a S$10,000 difference in its selling prices!

#5: THIS MOVE IS ALIGNED WITH INTERNATIONAL NORMS

Renowned economists, including those from the International Monetary Fund, have advocated the phasing out of notes with large denominations to deter financial crimes such as corruption and tax evasion. This move by MAS is aligned with the international norms. For instance, European authorities stopped the printing of the 500-euro banknote last year.

Sources: 1, 2, & 3

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Invest Your SRS with MoneyOwl And Get Up To $200 Shopping Vouchers

The Supplementary Retirement Scheme (SRS) is a voluntary scheme to encourage individuals to save for retirement. Unlike the Central Provident Fund (CPF), it is not compulsory to participate in the SRS scheme. A key benefit of SRS is that members can enjoy dollar for dollar tax relief, capped at $15,300 per annum for Singaporeans while saving towards their retirement goals. As a tax deferral scheme, when you subsequently withdraw from your SRS after the statutory retirement age, only 50% of the amounts withdrawn will be subject to tax. Individuals who would like to open an SRS account can do so with either DBS, UOB or OCBC bank.

Don’t leave your funds in SRS un-utilised

After transferring funds into your SRS account, don’t leave it un-utilised! According to Ministry of Finance (2019), over 28% of SRS contributions sit idle as cash balances, earning a low interest rate return of only 0.05% p.a.

There are many ways that you can utilitse your SRS contributions to grow your retirement funds, such as investing in unit trusts, ETFs, stocks, bonds (including Singapore Saving Bonds and Singapore Government Securities) and single premium insurance.  A particular affordable and convenient way is to invest your SRS funds with MoneyOwl to boost your future retirement fund. Here’s why you should do so.

Invest your SRS with MoneyOwl

Investing your SRS funds with MoneyOwl starts from as little as S$50/month or $100 as a lump sum. This means that it is possible to start early without waiting for your SRS funds to accumulate to a substantial level. Besides, there is no platform fee so that more wealth is generated for the you in the long run. With MoneyOwl, you gain access to a globally diversified portfolio of companies with good growth potential at value prices.

Receive up to $200 eCapita shopping vouchers

MoneyOwl is offering a limited time SRS promotion valid till 31 Dec 2020*

Tiers Qualifying Conditions* eCapita voucher
1 S$1,000 to S$10,000 fresh funds invested OR; $50
2 S$10,001 to S$50,000 fresh funds invested OR; $100
3 S$50,001 and above fresh funds invested $200

More details can be found on MoneyOwl’s website

*T&C:

  • This promotion is only valid from 9 November to 31 December 2020.
  • This promotion is only open to the first 500 people who successfully invest their SRS funds with MoneyOwl.
  • Promotion is valid for one-time top ups using SRS funds only. Regular savings plans/ monthly SRS investments are not eligible.
  • Promotion is not valid for cash investments and investments in WiseSaver portfolio.
  • You need to stay invested and not withdraw your funds for at least 2 months after the promotion period is over (i.e. till end-February 2021). Vouchers will be sent to you in March 2021.
  • Only new MoneyOwl clients are eligible for S$50 voucher redemptions.
  • Both existing and new MoneyOwl clients are eligible for the $100 or $200 voucher redemption.
  • MoneyOwl reserves the right to change these terms and conditions from time to time.

About MoneyOwl

MoneyOwl empowers and fulfils lives by helping people make wise decisions to achieve their financial goals. With one of the lowest fees in the market, invest your SRS funds with MoneyOwl today to boost your future retirement income.

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How To Alter Your Budget To Suit Your Work From Home Lifestyle

According to the multi-ministry task force handling COVID-19, Singapore may enter Phase Three by the end of 2020 should the community cases remain low in the country. The restrictions reflected by this upcoming phase may last for a year or more. That being said, more and more people are working from home.

This huge shift in the global workplace has brought many changes in our lives. Whenever big transitions occur, it is a good opportunity to re-assess all the aspects of our lives including our finances. What has changed in your budget ever since you started working from home?

Reduced costs on transportation, work clothing, daily coffee stops, and dining out were usually observed in the previous months. In contrast, many experience a spike in utilities, groceries, and online shopping fees. How can you better prepare for your future with this new set-up?

#1: RE-EVALUATE WHERE YOUR MONEY IS GOING

Get a realistic view of your finances by pulling out your bank statements, credit card bills, and other month expenses from the past three months. If you are using a budgeting app such as Mint, you may track your spending using the information inside the app. Look for unnecessary categories or recurring expenses that you can do without. This will help you spend less than what you have originally planned.

Aside from your spending, concentrate on other parts of your personal finance such as investments and emergency funds. You have the luxury of time to re-evaluate how much you are saving in your emergency funds. Ensure that the money you put inside will be sufficient to cover unforeseen events such as unemployment. We must overcome complacency during these tough times.

#2: CONSIDER DIFFERENT BUDGETING STRATEGIES

As you establish your new budget to suit your work from home lifestyle, you may employ different strategies such as goal-specific budget and the 50/30/20 method. The former focuses on the goal and not the percentages. You may start with a specific short-term goal such as saving S$50 for your emergency fund this week or a long-term goal such as putting away S$5,000 for a vacation next year. Break down your goals and allot how much you need to save per week or per month. Ensure that you meet your other financial responsibilities as you prepare for your goals too.

The 50/30/20 method entails putting 50% of your take-home pay to your fixed expenses including groceries and rent. 30% needs to go to your variable expenses such as entertainment and clothing. While, 20% is dedicated to your savings. Choose a strategy that will best work for you.

#3: STORE EXTRA CASH IN YOUR HOME

Many of us are working from home because there has been a shift in the economy due to the unpleasant effects of the pandemic. It helps to be prepared as we live within the realms of uncertainty. Store extra cash in your home for emergency situations. You may label this as your emergency fund, which can cover your expenses for at least six to nine months.

Knowing that you will be alright for a considerable amount of time before needing to use other financial resources can help you sleep better at night. This will prevent you from incurring debts.

#4: MAXIMIZE YOUR TELECOM AND INTERNET PLANS

Because most of our time are spent at home, it comes as no surprise that our utilities are higher now. Do your best to ensure that you are getting the most out of your telecom and internet plans. If your plan has an inclusion of data, try to substitute a costly mobile call for calling over at WhatsApp or Telegram. Various online platforms offer free calling and video-conferencing services worldwide. Take advantage of that!

#5: CONSERVE ENERGY

This new living and working arrangements have considerable effects on our electric bills. As much as possible, conserve energy on the devices and appliances that you work with. Unfavorable habits such as leaving your laptop constantly plugged in or forgetting to unplug your smartphone charger can cost you.

Image Sources: unsplash.com

One of the easiest ways to save energy is by ensuring that your cables or chargers are unplugged. Most devices work best with the 40-80 battery rule. You must plug the charger when your battery drops below 40% and disconnect the plug when the battery reaches 80%. Leaving a laptop or handphone constantly plugged in can cause extra wear and tear to the battery. Take care of the devices, which you use on a regular basis.

Sources: 1, 2 & 3

 

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Beginner’s Guide To Setting Up An Emergency Fund

WHAT IS AN EMERGENCY FUND?

An emergency fund consists of the money you set aside to cover large, unexpected expenses. It serves as your cushion to save you from drowning into debt  and other unfortunate events. It can be used for unforeseen medical expenses, home appliances replacement, automobile repairs, and managing unemployment.

HOW MUCH MUST I SAVE?

When you are starting to build your emergency fund, it is important to value what you have. No matter how small, every dollar counts. Focus on the habit and consistency of saving money. When your financial situation improves, you can increase your savings.

The right amount for you depends on your financial situation, but a good rule thumb is to have enough money to cover your living expenses for six months. If you lose your job during pandemic, you can use your emergency fund for necessities while you hunt for a new job. You can also use the money to supplement your small business. Start small and increase your savings as your financial situation improves.

WHY SHOULD I TRACK MY INCOME AND EXPENSES?

Tracking your income and expenses enable you to get a realistic view of your financial situation. It can pinpoint the amount that is sufficient to cover your living expenses for six months. You can track your cash flow by writing down how much money comes in every month and by writing down your fixed and variable expenses per month.

Do not forget to include recurring expenses such as your rent, utility bills, school fees, and childcare.

WHERE SHALL I PUT MY EMERGENCY FUND?

You can put your emergency fund inside a savings account with a high interest rate and an easy access system. Since an emergency can strike at any time, having quick means to access your funds is crucial. However, you must keep your emergency funds away from your primary bank account. This will help lessen the temptation of dipping into your reserves. Moreover, having a high interest savings account enables you to reap the benefits of compound interest.

HOW CAN I PLAN OUT MY EMERGENCY FUND?

Establishing financial goals and developing a plan to achieve those goals go hand-in-hand. Part of your plan may include specific and realistic targets to work toward. For instance, you may save S$50 per week to put into your emergency fund. Once you have created a robust plan, make sure you follow through.

Sticking to your plan can sometimes be the hardest part of saving for an emergency fund. A good way to stay on track is to save automatically. You may automate your savings and set up a systematic transfer from your primary savings account to your “emergency fund” savings account. Alternatively, you may keep a money jar and label it with: “for emergency use only”.

Sources: 1 & 2

 

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