Is Your Money Really Working Hard Enough?

If your goal is something short term—like paying for your next holiday, an upcoming renovation, or day-to-day expenses—keeping your money in a savings account often makes sense.

However, if your plans stretch into the mid- or long-term, such as your children’s education or your own retirement, a regular savings account may not be enough to help you get there.

So the real question becomes:
Where else can you put your money so it has a better chance of growing?

Here’s a practical look at how you can refine your financial strategy—understanding when a bank account works well, and when your money could be put to better use elsewhere.

When You Should Consider Other Savings Options

Relying solely on a bank account may not be ideal if you’re saving for goals that are 10, 15, or even 20 years away.

A basic savings account typically earns relatively low interest per year. While some banks advertise higher interest rates, these often come with multiple conditions—such as minimum monthly spending, salary crediting requirements, or maintaining a high account balance.

For many people, meeting all these requirements consistently can be challenging. Miss one condition, and the interest earned drops significantly.

Fixed deposits are another common option for conservative savers. They offer stability and predictability, but they may still fall short when it comes to long-term growth. Over time, inflation can quietly erode the real value of your money, limiting how much purchasing power it has in the future.

If your goal is long term, keeping everything in low-growth instruments may mean missing opportunities for your money to grow more effectively.

When Saving in a Bank Account Makes Sense

That said, bank accounts still play an important role in any financial plan.

Keeping cash in a savings account provides liquidity—you can access your money easily and quickly when you need it. This is especially important for:

• Monthly living expenses

   

• Short-term goals

   

• Emergency funds

   

An emergency fund, in particular, is best kept in a savings account. If something unexpected happens, you’ll want immediate access to cash without worrying about penalties, market fluctuations, or selling investments at the wrong time.

For near-term goals—such as a family vacation, a wedding, or small home upgrades—bank accounts remain a practical and sensible choice.

What Alternatives Are There to Bank Accounts?

For financial goals that are 10 years or more away, your money may benefit from being placed in options that offer higher long-term growth potential. Here are some commonly considered alternatives.

Insurance Savings Plans

As the name suggests, insurance savings plans are designed to help individuals build savings in a structured and disciplined way.

By committing to regular contributions, you create a consistent savings habit. Many of these plans also provide a degree of capital assurance at maturity, meaning you receive at least what you’ve put in, depending on the plan structure.

These plans are often used as a lower-risk component of a broader financial strategy and can be suitable for mid-term goals such as education funding or planned milestones.

Policy terms typically range from 10 to 25 years, and payment frequencies can be adjusted—monthly, quarterly, or yearly—based on what fits your budget best.

For retirement-focused goals, certain savings plans are structured to provide regular payouts in later years, helping to supplement retirement income. While returns may vary depending on performance, having a portion of guaranteed payouts can provide peace of mind during retirement.

Investment-Linked Plans (ILPs)

Personal finance involves both growing your money and protecting against risks. Investment-linked plans combine these two elements.

With an ILP, part of your contribution is invested in funds aligned with your risk profile, while another part provides insurance coverage. This allows you to participate in market growth while maintaining a level of protection.

Regular contributions also take advantage of dollar-cost averaging, helping to smooth out market volatility over time. For long-term investors, staying invested consistently can play a significant role in wealth accumulation.

ILPs may offer flexibility, such as fund switching, top-ups, or partial withdrawals, making them adaptable to different life stages and changing priorities.

Choosing the Right Option for Your Life Stage

Financial needs change as life progresses. What works for a fresh graduate may not suit someone raising a family or planning for retirement.

The key is not choosing more products—but choosing the right mix.

A balanced approach often includes:

• Cash for liquidity and emergencies

   

• Protection for unforeseen risks

   

• Growth-oriented tools for long-term goals

   

When each component has a clear purpose, your money works together instead of sitting idle.

Getting Started: A Simple Step-by-Step Approach

If you’re new to insurance savings plans or investment-linked plans, here’s a simple way to begin:

1. Set clear financial goals
   Identify what you’re saving for—education, retirement, or a major future expense.

    

2. Understand your risk tolerance
   Be honest about how much fluctuation you’re comfortable with.

    

3. Do your research
   Compare different options and understand how they work.

    

4. Seek professional guidance
   A financial advisor can help align strategies with your goals and timeline.

    

5. Start and stay consistent
   Even modest contributions can grow meaningfully over time.

    

6. Review regularly
   Life changes—your plan should too.

    

Tools and Resources to Help You Plan Better

Today, there are many tools available to help individuals manage their finances more effectively. Budgeting apps, investment platforms, and educational resources can help track progress, monitor growth, and stay informed.

The key is using these tools to support better decisions, not overwhelm yourself with too much information.