After a thorough research on savings deposits in Singapore, I concluded that the CIMB StarSaver account has the highest interest rate of 0.8% pa. After confirming that CIMB deposit accounts are insured by the Singapore Deposit Insurance Corporation, I transferred the funds from 'savings account 3' to a CIMB StarSaver account.
The minimum deposit is $1000 and the base interest rate is 0.5%. I will have to maintain an increasing balance equivalent to increments of $100 each month and the interest rate will increase to 0.8% pa automatically on my entire savings balance. Given that my balance is about $3000, I will be able to enjoy the 0.8% interest for 20 months.
The only downside of this account is the inconvenience involved. This is due to the limited number of branches and ATM machines in Singapore which makes withdrawing and depositing hard cash inconvenient. Currently, there are only 2 branches in Singapore and ATM machines are located only at the branch itself.
Also, I am thinking of setting up another StarSaver account(not top up existing one due to personal reasons) and transfer $10,000 from savings account 1 & 2 to it. The monthly interest earned on the $10,000 will be approximately $6.70.