• Dennis Toh

Here's How to make your Ang Bao Money work for you this CNY

As we are in the middle of celebrating Chinese New Year, everyone has been looking forward to two things – visiting our families and snagging those red packets! Instead of splurging on a new outfit or balling at a club like you’d do during pre-Covid days, you may be thinking about growing your wealth. It definitely pays to invest, and here’s how you can ensure that the huat stays with you this 2021!


1. Contribute to your CPF Account


If you think your CPF account is sufficient to sustain you during retirement, think again. They payout from your CPF LIFE scheme may not be enough to fulfil your retirement income needs if you plan to retire in style – you know, like traveling around the world or spending your weekdays at the golf club. If you don’t want compromise your lifestyle, a smart way to increase your gains is by topping up your CPF account.


There’s no reason why you shouldn’t! With attractive interest returns at 3.5% per annum for the Ordinary Account (OA) and up to 5% per annum for the Special Account (SA), it’s much higher than most bank savings accounts. So if you don’t mind having your money locked away until you’re 55 years old, this is one of the best ways to invest your money.


2. Put your money in a high-interest savings account


Perhaps you’re a student or foreigner who doesn’t pay CPF. Another way to invest is to park your moolah in a high-interest savings account instead of the bank where you only earn a mere 0.05% interest rate. For working adults, the best savings account can give up to 1.85% per annum worth of interest, while students can enjoy a flat 2% interest rate with the Standard Chartered Jumpstart Savings account.

3. Purchase Blue Chip Stocks


Investing in stocks have become increasingly trendy, and the good news is that you don’t need to pay an arm and a leg just to own stocks. Some banks such as POSB and OCBC offer blue chip investment programmes where you can purchase blue chip stocks for as little as $100/month. Since these blue chips refer to the top 30 companies in Singapore by market capitalisation, it means that these corporations are not only safe to invest in, but also offer returns of up to 5%! Flexibility is also assured and you can also sell the shares whenever you want to.

4. Invest in Crowdfunding platforms


Here’s a good way to support Singaporean business while growing your wealth! Crowdfunding platforms allow you to invest in high-growth start-ups by loaning them money or purchasing an ownership share starting from as little as $100. While the returns go as high as 30%, such investing requires you to have a large risk appetite, but you can always diversity your portfolio to navigate these risks.


5. Park your money in digital investment apps


Most Singaporeans are familiar with digital investment apps, also known as Robo advisors. Robo advisors are one of the best ways for investing noobs to start growing their money – all you need to do is sign up on the platform, include your goals and risk appetite, and that’s it! With the help of fancy algorithms, the Robo advisor will automate your investments in a low-risk way, typically investing in ETFs (exchange-traded funds) with assets including stocks, bonds and gold. This is a great way to invest passively for the long-term and may not be the most suitable for those interested in buying and selling frequently.



To find out more about how you can manage your finances, do contact me at