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Supplementary Retirement Scheme (SRS)
At a Glance
Maximise your savings by investing your SRS funds
Enjoy potential returns from various investments
Benefit from tax savings in the next assessment year
Every dollar deposited (subject to maximum cap on yearly basis) reduces your payable tax for that year’s income assessment
Enjoy more tax savings for future withdrawals from your SRS account
Make strategic withdrawals upon retirement. Capital gains are not taxed
The Supplementary Retirement Scheme (SRS) is a voluntary scheme where you can contribute funds into your account to supplement your retirement savings. It also gives you the added benefits of tax savings.
Benefits of having an SRS Account
Contributing to your SRS Account supplements your retirement plans. And with the added benefit of tax savings, you can boost the funds in the account. Here are three main reasons why you should have an SRS account:
1. Maximise your returns when investing SRS funds
Funds in your SRS account earn a lowly interest rate of 0.05% p.a. However, over time, inflation erodes whatever interest gained. By actively investing the SRS funds, you can expect potential returns from a wide range of investments.
Any gains you make on your SRS investments will automatically be deposited into your SRS account. These gains are tax-exempted until you decide to withdraw the money.
- Foreign Currency
- Fixed Deposits
- Single Premium Insurance
- Unit Trusts
- Exchange Traded Funds*
* Via DBS Vickers Online
2. Save more on taxes year after year
Your SRS is also a great way for you to save on income taxes, because your contributions toward your SRS account are eligible for dollar-for-dollar tax savings. This simple illustration below shows you the difference in tax savings with and without an SRS account.
Maximum yearly contribution
3. Withdraw strategically in the future to maximise the benefits
When you decide to withdraw the funds in your SRS Account upon retiring, one thing to note is your SRS funds withdrawn are taxable. However, you can save on the taxes by withdrawing in a systematic and strategic manner.
Things to note about withdrawing from your SRS Account:
50% tax incentive
When you reach age 62, you will enjoy 50% tax incentive for any amount withdrawn from your SRS account. Any amount remaining in the account after 10 years will be treated as a lump sum withdrawal. 50% of this amount is taxable.
10 years to withdraw
From the time you begin your first withdrawal, you are given 10 years to withdraw the full amount.
First S$20,000 is tax free
The first S$20,000 will not be subject to taxation.
Calculate the tax savings you can potentially enjoy.
Are you eligible?
You can apply and open an SRS Account if you:
- are a Singaporean, Permanent Resident (PR) or foreigner
- are at least 18 years old and not an undischarged bankrupt
- have no existing SRS Account with any bank
- have no pending SRS Account opening application with any bank
Start investing your SRS funds with DBS Treasures
Investing with SRS funds is easy. Do it at your convenience online with DBS digibank or link your SRS Account to your DBS Vickers Account. Need more advice? Speak to our Relationship Manager.
Are you a digibank user?
Go to “Invest” to get started.
Have a DBS Vickers Account?
Choose SRS as your settlement mode.
Need advice on investments or buying insurance plans with SRS?
Speak to our Relationship Manager.
Frequently Asked Questions
Can I withdraw before 62?
If you must withdraw before age 62, you will be subject to 5% penalty e.g. if you withdraw S$10,000, you will pay a penalty of S$500. What’s more, 100% of the amount withdrawn will be taxable i.e. the S$10,000 will also be added to your taxable income for the year. However, there’s a way your tax savings over the years could outweigh the 5% penalty.
Why should I contribute to SRS?
Besides having extra savings for your retirement, you'll also enjoy tax benefits. SRS contributions entitle you to tax reliefs, as each dollar that you save in your SRS Account will reduce your chargeable income by a dollar. However, your yearly contribution is capped at S$15,300 if you're a Singaporean or Singapore Permanent Resident. If you're a foreigner, you'll be allowed a higher yearly contribution of S$35,700 as you do not enjoy tax relief on your CPF contributions.
How do I contribute to my SRS Account?
You can do so via iBanking or at the branch. You do not need to make a claim in your tax return as it will be allowed automatically based on information provided by us to IRAS.
Can I invest with you if my SRS Account is with another bank?
Yes, you can speak to us on how you can maximise your SRS funds.
What happens if I withdraw before 62 years old?
You can withdraw from your DBS SRS Account at any time before age 62, subjected to a 5% penalty for early withdrawal. 100% of the amount withdrawn will also be subjected to tax for that year. But in some cases, your tax savings over the years might outweigh the 5% penalty. Here's an example:
How can I check my SRS Account balance?
Login to iBanking and easily view the following information on your SRS Account:
- Maximum contribution amount
- Total contribution made to date
- Balance contribution limit
- Cash balance
Can I have multiple SRS Accounts?
You can only have one SRS account at any point in time. It is an offence to open SRS Accounts with more than one operator and there are penalties for doing so.
Instead, if you have an existing SRS Account with another SRS operator and wish to transfer to DBS, please visit any of our branches to do a SRS Account transfer.
How do I transfer my SRS Account from another bank to DBS?
You can visit any of our branches to complete and sign the following forms:
- SRS Account Transfer form
- SRS Account Application form
- SRS Annual Declaration form (Applicable to foreigners only)
Do I have to ensure sufficient cash balance in my SRS Account before requesting for any securities transaction?
Effective 10 Dec 2018, the settlement cycle for securities is two days. (Trade date plus two days) to align with the new SGX securities settlement cycle. Please ensure that you have sufficient cash and securities balance in your SRS account before requesting for any securities transaction with us. Your trade will be accepted up to your available funds or securities upon receipt by the bank.
Where can I find out more information on my shares corporate action event for my SRS Account?
Information on shares corporate action event, can be found in the SGX website. Refer to Company Announcements, under Company Information.
My shares in the SRS Account has a stock split event, when will the shares be credited to my SRS Account?
The "security credit date" information can be found in the SGX website. Refer to Company Announcements, under Company Information.
What are the fees and charges involved?
The bank will charge a transaction fee of $2 for each Singapore Savings Bond application and redemption request. Otherwise, all other fees and charges for SRS Account are waived until further notice. Note: Other third-party related charges such as CDP administrative fees will apply.
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