Nearly half of Singaporeans focus on cashback than interest, survey says

Only one in 10 is confident about knowing their bank’s interest rates.

A survey of 1,000 Singapore residents found that 89% of respondents hold spare cash, yet nearly half (48%) check their spending rewards more than spare cash interest (37%), said Chocolate Finance.

Only 11%, or over one in 10 respondents, are very confident they know their bank interest, whilst 89% are unsure.

The finance firm said that Singaporeans actively look for value in spending; thus, the preference for visible cashbacks, rewards, vouchers and discounts.

However, spare cash receives less attention once set aside.

According to the study, Singaporeans use an average of 3.7 named banks and financial platforms, making tracking finances difficult.

Some 72% of spare cash holders describe its purpose as “eventual use,” or do not think about timing at all. Only 29% of responders categorise their money for different purposes.

When asked if they could create a specific goal for their spare cash, 59% said they are likely to leave it untouched and let it grow.

Chocolate Finance said that cluttered money makes it easier to lose track of it, and encouraged giving spare cash a specific purpose to shape financial habits.

The firm said that spare cash should not be set aside and forgotten, but given a clear role which benefits the user.

Walter de Oude, founder and CEO of Chocolate Finance, said this is the purpose of their new Jars feature.

“When people give their spare cash a purpose, they're more likely to leave it alone and let it grow. We want to make it easier for people to turn their spare cash into something they're actually working towards."