Standard Chartered JumpStart: Could it be Still Worth Opening This Checking account For college students And Fresh Graduates?
As of just one January 2021, Standard Chartered has revised the interest rates for his or her JumpStart checking account to 0.4% pa. In this low interest rate environment, it is unsurprising that Standard Chartered has revised its rates (the rates for Bonus$aver account were revised on 1 October 2021).
With two substantial rate of interest cuts in 2021 alone, you may be wondering if the JumpStart savings account is worth the while.
Standard Chartered JumpStart Interest Rate Revised To 0.4%
At the start of 2021, the conventional Chartered (StanChart) JumpStart account was easily among the best high rate of interest checking account at 2% p.a. with no hurdles to pay off to receive said rate of interest. Unlike other high interest savings account that need salary credit, charge card spend, insurance or investment, StanChart JumpStart provides you with the advertised rate of interest on the first $20,000 balance.
|JumpStart Interest rate||Before 1 July 2021||1 July 2021||1 January 2021|
|Any balance above $20,000||0.10%||0.10%||0.10%|
However, the eye-catching 2% interest rate continues to be nerfed, dropping to 1% on 1 July 2021 and again on 1 January 2021 to 0.4%. Having said that, for any hassle-free checking account, 0.4% isn't something to be scoffed at. The JumpStart's 0.4% is still higher than the 0.3% provided by CIMB FastSaver (with effect from 15 January 2021) that was our recommended best savings accounts if you do not wish to keep jumping through hoops.
Standard Chartered JumpStart Is just For Young Adults
Not only does the JumpStart account have a relatively high base rate of interest (0.4% p.a.) that requires no special spending or salary credit, it's no fees with no minimum balance. This will make it an ideal set-and-forget checking account.
Additionally, you receive 1% cashback on all eligible transactions on your JumpStart debit card, limited to $60 monthly. All these features make the JumpStart account a versatile and fuss-free savings account for his or her intended target group.
There is only one condition of the JumpStart: you must be between 18 and 26 years old during the time of application. This restricts JumpStart to the domain of scholars, fresh graduates and young (working) adults). This really is one key reason why the JumpStart account wasn't featured within our roundup of best savings accounts if you do not wish to keep jumping through hoops.
Should You Open And Your JumpStart Account Before you decide to Turn 27?
The interesting fact concerning the JumpStart account is the fact that even though you can only open the account between the ages of 18 and 26, you could keep the account after age 26. You can retain the JumpStart account and you will continue to get the same base interest rate as other JumpStart customers. Even at 0.4%, the JumpStart continues to be a powerful contender to find the best fuss-free savings account, if not because of its age requirement.
With this in mind, if you're currently eligible to open a JumpStart account, you might want to consider doing so. There is little to lose for opening this account because there are no fees and no minimum balance. This means you can choose to leave this account empty or leave very minimal funds in here and it'll be there for you when you need it. However, there is the possibility of an upward revision of the base rate of interest when interest rates increase in the near future (when you're possibly past the age requirements to spread out this account).
By opening the account now, your future self may appreciate your foresight in retaining a fuss-free high interest savings account.
However, if you are looking for somewhere to park your savings without jumping through all the hoops and still earn a greater interest rate, you will find alternatives besides savings accounts. Insurance savings plans, like the Singlife Account, or cash management accounts, for example Endowus Cash Smart and Stashaway Simple, all offer better return rates than most savings accounts and therefore are worth your consideration.