The recent launch of OCBC’s Blue Chip Investment Plan (BCIP) has attracted a lot of attention in the market. Financial institutions are more aggressive to accumulate their AUM (asset under management) nowadays as the investment business has suffered since the financial crisis.

POSB has launched their own POSB Invest-Saver Plan, which “Invests in Singapore blue-chip stocks from just S$100 a month – with a fee from as low as S$1!”

What is POSB Invest-Saver?

It is a Regular Savings Plan (“RSP”) that allows you to invest via a GIRO arrangement on a monthly basis.

POSB Invest-Saver is designed for those who:

  • may not have a huge capital
  • want to potentially grow their long-term savings
  • are looking to diversify their portfolio

What will you be investing in?


Through POSB Invest-Saver, you will be investing into the Nikko AM Singapore STI Exchange Traded Fund (“ETF”). When you buy units of this ETF, you are investing into Singapore’s top 30 companies (based on market capitalization) including Singapore Exchange, Singapore Airlines and Singapore Press Holdings (subject to half-yearly review). Collectively, they are known as Singapore’s blue-chip companies and their performance is tracked by the Straits Times Index (STI)

Fees and Charges

  • Low sales charge of 1% per transaction with a minimum investment sum of S$100
  • No fees for selling the units (this may be subjected to change)

I feel the offer is quite reasonable as you do not have to pay a broker fee to buy ETF and you are not subject to minimum commission of $5 like OCBC’s plan.

ETF, which has already gained popularity in other parts of the world, never really took off in Singapore. It is largely due to the fact of high commission rate and lack of public education. Brokers do not like to promote ETF either as it will likely hit their profits.

Anyway, applause for the progress and glad to see the local financial institutions finally want to catch up.

How to set up POSB Invest Saver

To apply, you must be at least 18 years old, not a U.S. person, and have a savings or current account with the Bank.

  • Log in to digibank Online with your User ID and PIN.
  • On the Top Menu, under Invest, click on More Investment Services.
  • Under Make an Investment, click on Set Up Exchange Traded Fund Regular Savings Plan (RSP).
    Search/Select the Exchange Traded Fund of your choice (Nikko AM Singapore STI ETF or ABF Singapore Bond Index Fd) and click Buy to continue.
  • Select your debiting account, enter your investment amount and click Next.
  • Verify your application details and click Submit to confirm your application.

Upon successful setup, the Bank will send you a confirmation letter to inform you that your investment into the POSB Invest-Saver is set up, and the date of the first deduction.

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

  • Hey Ivan,

    I think one of the reason why banks are more aggressive to accumulate their AUM is because money is not going to them as easy as before. People of the younger internet generation like me are finding alternatives that yield more than what the banks offer. Whether you do it yourself or through other channels. I mean 0% interest rate. Seriously?! I haven’t read deep into this blue chip one, but anything from the bank, not for me thanks.

    Pok Chow

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