How to Grow Your Money with Your Salary Increment

Salary increment

Got a salary increment or raise? Here’s how to invest it and grow your wealth in Singapore.

Earning a salary increment marks the recognition of hard work and being a valuable contribution to your company. The way you utilise the extra income can significantly impact your current and future financial status. It’s crucial to prioritise and plan for the financial winds of change.

Interestingly, a recent study by the Singapore Business Federation found that 64% of SMEs and large companies plan to increase wages by an average of 6% to combat the 4% inflation in 2023. What are your plans to maximise your salary increase or raise if (or when) you get one?


Maximise Your Pay Raise: Spend, Invest, or Save? 

Many individuals face the decision of whether to invest, save, or splurge their money. Regardless of your choice, here are some suggestions to help you maximise each dollar earned.


Grow Your Wealth Through Investments

Say you earn S$5,000 monthly. A 4% raise equates to an extra S$200 monthly. How do you begin investing with a modest salary increase? While you may not afford blue-chip stocks, consistent small investments can build a portfolio, given time.


Online brokers and robo-advisors

Seek an online broker like moomoo or a robo-advisor like Endowus, as these will enable you to invest in ETFs or index funds for S$200 or less. These products complement well in diversifying your investment portfolio, thereby lowering investment risks.

Conservative investments

You could also consider conservative investments like T-bills or bonds which require as little as S$500 to start. When you buy bonds or T-bills with a AAA credit rating, they are almost capital guaranteed. Interests may also be fixed, provided you wait for the investment to mature.


Related: Dollar Cost Averaging: The Secret to Hassle-Free Investing?


Enhance Your Savings With High-Interest Accounts

Numerous savings accounts in Singapore provide interest rates well beyond the otherwise low 0.05% per annum. Consider the OCBC 360 Account, for instance, which offers customers the opportunity to earn up to 7.65% per annum.

By depositing your monthly salary increment or pay raise of S$500 into this Singapore account, you could earn an additional 1.20% as a Step-Up Bonus on your initial S$75,000 savings. Additionally, you could qualify for another 2% interest by crediting a minimum of S$2,000 in monthly salary to the account via GIRO.


Gain an added savings boost with fixed deposit interest rates

To boost your savings, consider leveraging fixed deposit accounts with competitive interest rates. With a minimum deposit as low as S$1,000 and lock-in periods as short as six months, these accounts are perfect for diversifying your portfolio. They offer a risk-free investment option that demands minimal management effort.

Below is a list of carefully curated top fixed deposit accounts in Singapore.



Minimum Deposit


Interest Rate

(per annum)



6 months


Hong Leong Finance


6 months




6 months


Standard Chartered


6 months




10 months




3 months


*Accurate as of 2 January 2024


Spend Your Money By Shopping Smart

Treating yourself when you get a raise is perfectly fine and gives a boost to the economy too. It’s crucial to research and budget wisely to prevent impulse spending and overextending. Stay within your means and do not spend beyond your increased income.

A savvy shopper knows that using the right credit card while shopping helps in making the most of your hard-earned money. The right payment card can let you save while earning more rewards at the same time.

Unsure about the best card deal for your next purchase? Explore credit cards that offer top rewards across various shopping categories:


Credit Card


OCBC Titanium

4 miles per S$1 spent on fashion and select online and retail purchases (Lazada, Shopee, Amazon and Qoo10)

HSBC Revolution

4 miles per S$1 spent on online and contactless spend


Up to 8% cashback on online and mobile contactless spend

Citi Rewards

4 miles per $1 spent on rides, online food delivery, and online spend

DBS Woman’s World

4 miles per S$1 spent on online shopping

KrisFlyer UOB

Up to 3 miles per S$1 spend on online shopping, dining, travel, transport, and food delivery

Citi Cash Back Plus

1.6% unlimited cashback on all spend

OCBC Frank

8% on foreign currency transactions and online/contactless mobile transactions in SG$

HSBC Advance

Up to 3.5% cashback, capped at S$300 per month


Related: Best Credit Cards in Singapore 2024


Other Ways to Spend Your Salary Increment

Looking for more ways to make the best out of your salary increment? Here are more options.

Enhance Insurance Coverage

With your extra moolah, you can upgrade your insurance plans to enhance your coverage and protection. Alternatively, you may consider buying an endowment plan. This will allow you to save or invest while also getting insurance coverage.

Debt Management

With your salary increment, you can consider clearing high-interest debt like credit card balances to save you the financial strain (and monetary drain).

Personal Development

Use a portion of your increment to enrol in courses or workshops that enhance your skill set and make you more competitive in the job market. Singapore offers various opportunities for skills upgrading, including the SkillsFuture program, which provides subsidies for courses across different sectors.

Health and Wellness

Allocate a portion of your increment towards maintaining or improving your physical and mental well-being. Invest in quality healthcare, gym memberships, or wellness retreats.

Community Engagement

Beyond personal and financial growth, community-oriented investments can be incredibly rewarding. Giving back to society can provide a sense of purpose and fulfillment, complementing your personal and financial success.



Your salary increment represents more than an increase in your bank balance; it signifies the opportunity for growth, prosperity, and giving back. By adopting the strategies outlined in this guide, you can make prudent financial decisions that will benefit you, your loved ones, and the larger community in the long term.


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