Readers of heartlandboy.com would have been aware that both Heartland Boy and Heartland Girl had opened SRS Accounts in 2015. Heartland Boy and Heartland Girl’s SRS Accounts are with DBS and OCBC respectively.  While SRS is a great way to reduce income tax, Heartland Boy also views it as a complementary pillar to his retirement funds. Indeed, he has invested SRS in ETF in order to grow his retirement funds.

Why Invest Your SRS Funds?

Your money in SRS Account earns 0.05% per annum. Therefore, if you contribute to the maximum annual limit of S$15,300, it earns a grand total of $7.65. That is probably sufficient for you to buy one Extra Value Meal at MacDonalds in a single year. Of course, an interest rate of 0.05% pales significantly to OCBC’s 360 Account. In other words, your funds in SRS is left idling around earning a …