Lastest S$ Deposit updates - Part 1

Status
Not open for further replies.

mrwirus

Senior Member
Joined
Jun 8, 2006
Messages
1,868
Reaction score
13
how does the CMA bond work ah? I'm new in all these stuff and I'm trying to park a bit of my spare cash that I've earned for the past few months.. Anyone can enlighten me? What are the risks involved?
 

josywm

Junior Member
Joined
Nov 12, 2008
Messages
32
Reaction score
0
CrimsonP wrote:
dun get bluff

fine print there say 0.88 is for jan to march 31 nia.

after that april onwards drop to 0.40 p.a

today i went place fixed deposit with UOB 0.80 pa one
:s11: 11mth FD~?

may I know how to get this 0.8% PA from UOB? Just bank in fresh $40K and FD for 11mths? But I saw from UOB website only max 0.7*PA
 
Last edited:

Atmosphere

Supremacy Member
Joined
Mar 5, 2004
Messages
5,120
Reaction score
0
how does the CMA bond work ah? I'm new in all these stuff and I'm trying to park a bit of my spare cash that I've earned for the past few months.. Anyone can enlighten me? What are the risks involved?

To me it looks like a 3 yr FD provided CMA dun close down...
will like to know the risk involved too...
 

mosmos

High Honorary Member
Joined
Feb 25, 2001
Messages
170,200
Reaction score
4,315
CrimsonP wrote:
dun get bluff

fine print there say 0.88 is for jan to march 31 nia.

after that april onwards drop to 0.40 p.a

today i went place fixed deposit with UOB 0.80 pa one


may I know how to get this 0.8% PA from UOB? Just bank in fresh $40K and FD for 11mths? But I saw from UOB website only max 0.7*PA
link: http://www.uob.com.sg/personal/promotions/cards/uob-cny-promotions-2011-savings.html?s_cid=740

UOB11010311mthTD.jpg
 
Last edited:

linusz

Master Member
Joined
Jul 10, 2001
Messages
2,710
Reaction score
25
bookmarked.

anyone puts money in cimb starsaver?
how much is the deposit guaranteed up to? 50k?
 

kaisin82

Senior Member
Joined
Aug 22, 2006
Messages
1,203
Reaction score
72
yup...it is guaranteed up to 50k.
cimb not bad but just no atm machines around

no queues at counters, top notch customer service =)
 

homer123

Supremacy Member
Joined
Sep 12, 2004
Messages
8,594
Reaction score
3,376
Where did u get the news that it is guaranteed up to 50k? Last check with SDIC , it is still 20K
 

theopulence

Junior Member
Joined
Mar 21, 2008
Messages
8
Reaction score
0
I gathered that the best savings account with the flexibility of withdrawing should you need the money to make further investment will be:

1.RHB
With its IR up to 0.78%, even if it's only $5000, you are already getting 0.48% p.a. which way beats the usual savings account rate. And you don't have to worry about all the step up IR, just throw in a lump sum.

2. CIMB Bank
I am especially intrigued with this one. With an initial deposit of $5000, IR will be 0.5% p.a.. And with an incremental deposit of S$500 or more, the IR becomes 0.8% p.a. The bank also suggest that if you throw in a lump sum, they will divide the portions into $500s so you will always enjoy the 0.8% p.a.

My question is this,

Assuming I have a S$100,000 to park, how does the IR distribution goes?
1st month $5000 (0.5% p.a)
2nd month $5000 + 500 (0.8% p.a)
3rd month $5500 + 500 (0.8% p.a)
Then the rest of the money parked there enjoys no IR, until my money is queued to be deposited? (I know I have not included compounded interest in the above analogy but I am trying to simplify things, given that I am already confused. Haha)

Secondly, if I decide to place my $100,000 at RHB (to enjoy the 0.48-0.58% meanwhile), open an account of $5000 with CIMB then incrementally deposit more than $500 every month. It is said that "CIMB will automatically convert your lump sum deposits into equal portions of S$500 a month so that you enjoy the 0.8% p.a. maximum interest on your entire savings balance over the months ahead."

So what qualifies lump sum, assuming I deposit $20,000 monthly, is this lump sum and they would quantify it as a 40 months of S$500.

Or how about if I deposit $1000 monthly, will this amount be converted to equal portions of S$500 a month and this brings me back to the 1st question, what happens to the excess funds?

Sorry if I just sound like I am confusing myself. I am new to this and is just trying to know how it works and where best to park the money while I await a good investment opportunity. Thank you! :)
 

satayxp

Banned
Joined
May 10, 2004
Messages
151,852
Reaction score
5,172
Assuming I have a S$100,000 to park, how does the IR distribution goes?

if u deposit 100k at one go, that's equivalent to 200 months of $500-mthly-deposit
the bank will from the start pay 0.8%pa interest on your entire 100k
 

theopulence

Junior Member
Joined
Mar 21, 2008
Messages
8
Reaction score
0
if u deposit 100k at one go, that's equivalent to 200 months of $500-mthly-deposit
the bank will from the start pay 0.8%pa interest on your entire 100k

thanks satayxp! :)

I think it really is that simple and I'm just over thinking it. In this case, I guess it will easily beat the UOB FD or any other savings plans for now.

I'm currently with Maybank but the effective IR is only 0.33% p.a. and that's really sad.
 

oohman

Arch-Supremacy Member
Joined
Jul 6, 2004
Messages
18,727
Reaction score
123
Any investment vehicle which can beat the inflation rate plus offer capital guarantee to a certain degree.

Only two things come to my mind.
Mutual Funds
FDs ( though cant beat inflation rate)
 

ongware

Greater Supremacy Member
Joined
Apr 24, 2000
Messages
91,082
Reaction score
0
Any investment vehicle which can beat the inflation rate plus offer capital guarantee to a certain degree.

Only two things come to my mind.
Mutual Funds
FDs ( though cant beat inflation rate)

but there are pple who "look down" on mutual finds / unit trust. They recommend ETF instead, which is like rocket science to me
 

Cashcow

High Supremacy Member
Joined
Feb 3, 2008
Messages
36,918
Reaction score
0
but there are pple who "look down" on mutual finds / unit trust. They recommend ETF instead, which is like rocket science to me

It's like that.

Those ppl worship ETF like a holy grail although unit trusts can easily outperform ETF over a 5 year period.
 

ongware

Greater Supremacy Member
Joined
Apr 24, 2000
Messages
91,082
Reaction score
0
It's like that.

Those ppl worship ETF like a holy grail although unit trusts can easily outperform ETF over a 5 year period.

but in terms of charges ETF are cheaper...so is ETF very risky?
 

Cashcow

High Supremacy Member
Joined
Feb 3, 2008
Messages
36,918
Reaction score
0
but in terms of charges ETF are cheaper...so is ETF very risky?

If you look at charges, ETF is a low cost fund. Good for short term but mid to long term wise, unit trusts can easily outperform them.
 

ongware

Greater Supremacy Member
Joined
Apr 24, 2000
Messages
91,082
Reaction score
0
If you look at charges, ETF is a low cost fund. Good for short term but mid to long term wise, unit trusts can easily outperform them.

in a way agree....try to open an ac with dollar dex...need to print form :( printer spoli.

POEMS the fees are higher
 
Status
Not open for further replies.
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Community Guidelines and Standards, Terms of Service and Member T&Cs for more information.
Top