How does Singapore’s regular savings plan operate?

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The Singapore Regular Savings Plan (SRS) is an investment scheme operated by the Singapore Government that encourages citizens to invest and save for retirement.

It offers tax relief on income and incentives for saving and investing in several different products such as stocks, bonds, mutual funds, insurance policies, etc.

The SRS has become popular amongst Singaporeans due to its ability to generate long-term wealth with minimal effort. Read on to learn how the SRS operates and how you can benefit from it.

Open an SRS account

Before starting SRS investments, one must open up a designated SRS account with any of the three participating financial institutions – DBS Bank, OCBC Bank, and UOB Bank.

The account must be in the name of an individual who must also be a Singapore citizen or Permanent Resident.

There is no minimum savings amount, but each account can hold up to S$150,000 (or its foreign currency equivalent) at any time.

Make contributions

Once the account has been opened, individuals can start making regular contributions to their SRS accounts. Contributions are capped at S$12,750 per year, and individuals will enjoy income tax savings of up to 37%, depending on their annual income.

Investors cannot withdraw any funds placed into this savings plan until after retirement – currently set at 62 years old for those born between 1 January 1969 and 31 December 1971 – unless the individual is permanently incapacitated or has died.

Invest in savings plans

Investors can use the money placed into the SRS to purchase savings plans from each participating financial institution, such as stocks, bonds, mutual funds, and insurance policies.

Each savings plan in Singapore will come with specific terms and conditions, so individuals must understand these before investing in any savings scheme.

Moreover, individuals can also use the SRS to purchase up to two residential properties in Singapore, with some restrictions.

Withdraw savings

As mentioned earlier, individuals will not be able to withdraw their savings until they reach retirement age or are incapacitated, or have died.

Once an individual reaches retirement age, they can withdraw from the savings scheme. Any withdrawals made before this point may incur a penalty fee or tax surcharge.

Monitor savings

It’s vital for individuals to regularly monitor their savings and investment plans in the SRS, exceptionally if they choose to invest in stocks or bonds.

It means checking on their savings periodically and adjusting their savings strategies accordingly to changes in market conditions.

Individuals should also ensure that they are aware of any regulatory updates or amendments made by the Monetary Authority of Singapore (MAS).

Advantages of using a regular savings plan in Singapore

SRS savings plans offer Singaporeans several advantages that investors should be aware of. Knowing the advantages allows investors to make informed decisions about their savings plans and make the most out of them.

Tax savings

With the SRS savings plan, individuals can enjoy up to 37% savings on their income taxes. It makes it an attractive option for Singaporeans who wish to save for retirement and enjoy tax savings simultaneously.


The SRS offers investors a lot of flexibility regarding where they want to invest their savings. From stocks and bonds to mutual funds and insurance policies, there is something for every investor’s needs.


With the SRS savings plans, investors are assured of a secure source of income during retirement. As long as contributions are made per the rules set out by MAS, individuals can be sure that their savings will be safe and secure.


Setting up and investing in an SRS savings plan is easy and can be done from the comfort of one’s home. All the necessary paperwork and forms can be found online, making it convenient for Singaporeans to save for retirement.

Low risk

The SRS savings plan offers Singaporeans a low-risk option for long-term savings. By investing in savings plans such as stocks, bonds, and mutual funds, individuals can minimize their risks and secure the future of their savings.