SRS Account is not just for Singapore citizens. Permanent Residents and even foreigner can also apply!
Don’t get caught on wrong myths, opening SRS account is as simple as 1,2,3,4,5. Check them out below.
What is SRS account?
SRS is short for Supplementary Retirement Scheme. It’s a kind of initiative from Singapore government to its resident where any money (up to certain ceiling) top-up to this account, will have not only tax relief but also chance to get exempted from tax.
For other topics related to SRS account, do check them here.
For articles related to tax deductions, reliefs and rebates, do check them here.
Why you want to open SRS account?
SRS account is great for people who wants to save more for their retirement especially those who has extra unused money. You can get tax relief from topping up SRS account. You can use the money on SRS account to do investment – such as buying stocks, funds or bonds. So it is like getting double returns – from the tax relief and from the return from investments.
Caution! If the main intention of topping up SRS account is to get tax relief, ensure you haven’t hit the cap of tax relief as well as you haven’t hit the cap for maximum allowable SRS amount to get tax relief. Because in case any of the conditions I specified above doesn’t satisfy, you may end up not getting any tax relief.
Since 2018, the cap of individual tax relief is $80,000. The maximum alllowable SRS top up for tax relief for Singapore Citizen or Singapore Permanent Residents are $15,300.
Banks with SRS Accounts
Not all financial institution In Singapore allowing you to open SRS account, in fact there are only 3 banks which can help you to open a SRS account.
DBS, UOB and OCBC.
Though the same SRS account, but different banks have different way of opening it. From the 3 of them, I choose DBS simply because only DBS at this point of time allows you to open SRS account online, while UOB and OCBC require you to come to their branches to open SRS account.
Opening SRS Account
I’m using DBS/POSB, if you are using UOB or OCBC, at this point of time, they can’t open SRS account online and by the time they have the system, it could be (slightly or totally) different from the steps explained below – so please use this only for your references.
So here’s how you can open SRS account online.
Prerequisite: POSB/DBS bank account.
1) Login to DBS/POSB account.
2) Head to the top menu, Apply > Supplementary Retirement Scheme (SRS). When prompted, log in either via IB Secure device or SMS.
3) Under Supplementary Retirement Scheme, click on “Instant Apply”. Then follow the steps. Transfer at minimum $1.
4) Once transferred, the SRS account is instantly created.
5) Then navigate to Transfer menu and make the necessary transfer to the SRS account.
That’s it. All the steps above takes no more than 5 minutes to do it.
How many SRS account you can have or open?
Unlike normal bank accounts which you can open as many as you like, SRS is a little bit different. Despite there are 3 banks as an option, but each person is eligible only to open only 1 SRS account per NRIC.
Why you should consider opening an SRS account.
FYI. I’m not government agent nor I’m getting paid to promote this.
If you have money you plan to invest, and the investments (be it bonds, stocks, insurance plan or whatever they are) are covered and sold by financial institutions accepting SRS money, why not?
Apart that you can buy investments (like your original plan) at the same time you also save more money by getting your tax reduced and potentially exempted when you retire.
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