POSB Invest-Saver – Actual experience

We went to a POSB branch to enquire about POSB Invest-Saver, thinking that it is a product, which must be executed at the bank itself. We then realised that we could do it on our own with POSB Internet Banking. But before we can buy into the regular savings plan (RSP), we must answer a few questions on the Customer Knowledge Assessment (CKA) on-line to assess our risk profile. Once we clear this step, we can then go ahead to execute the savings plan.


It is a RSP, meaning we put in $100 per month to Nikko AM STI ETF. At the end of 12 months, the total money put in would be $1,200. The bank sales charge for this Nikko AM STI ETF is 1.0%. For every $100, you would invest only $99. $1 goes to the bank. This is a low sales charge.

You do not time the purchase of the STI ETF under RSP. When the STI ETF is high in the month, you would get lesser units of the investment. When the STI ETF is low, you would get more units of the investments. You then average out the costs per unit of investments.

When you decide to sell off the investments in the future, there is no fee on selling.

Dividends earned on Nikko AM STI ETF will be credited in CASH to your POSB account. Distribution is credited semi-annually.

ABF Singapore Bond Index Fund

This fixed income fund is also managed by Nikko Asset Management (Nikko AM). We decided to put in $100 per month into this fixed income fund as well. Now the total investment has two parts, the equity (stocks) and the fixed income (or bonds). Every year the investment comes up to $2,400.

The bank sales charge is 0.5% on each investment amount. For every $100, $99.50 is invested. $0.50 goes to the bank. Distribution of interest income is credited annually.


For $200 each month, you are invested in Singapore STI 30 component stocks and the Singapore bond markets (86.8% in Singapore Government bonds).

Note: Please assess your risk profile and decide whether this regular savings plan is suitable in your circumstances.

Copyright © 2017, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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