DBS changed its Mutiplier plan

[lzjlee]

Looking at transferring spare fund to SAYE. But if there is a month there is no salary crediting what will happen ah? Is it no bonus interest for that month only or game over? Anybody know?

In case change job and there is a gap in between for salary crediting.

 

[Squaredot]

There are some risks to SAYE. For instance, you can't withdraw in 2 years and must credit your salary every month.

BTW, you may also choose posb cashback+SAYE.

+1
and POSB bonus 2% is subjected to change? Think it's written in T&CS...I'm not sure

 

[Squaredot]

Why need to spend $6,667 on CC and $1,000 on RSP? You just need to spend $0.01 on CC and $100 on RSP to unlock these two category.

Assume someone has $6,667 salary, $0.01 CC spending and $100 RSP, POSB Cashback Bonus will give $22.5 cashback per month ($20 from salary, $3 from ETF RSP minus $0.5 charge). This is equivalent to 0.54% p.a. interest rate for 50k (or 0.27% p.a. for 100k). And he's free to top-up the 50k (or 100k) to Singlife, ELASTIQ or other products to get another 1.0%~1.8% p.a. interests. So total interest rate is 1.54%~2.24% p.a for 50k (or 1.27%~2.07% p.a. for 100k). If the interest rate from Multiplier is lower than this, it's worth to convert.

good thinking, thanks

 

[Ca5per]

Again. I know ask alot of times liao.

What are the better choice for rsp?

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[maumu]

What if someone lose his/her job?

Looking at transferring spare fund to SAYE. But if there is a month there is no salary crediting what will happen ah? Is it no bonus interest for that month only or game over? Anybody know?

In case change job and there is a gap in between for salary crediting.

seems like you'll have to restart from month 0... reapply again. yes this is probably the only risk to consider.

+1
and POSB bonus 2% is subjected to change? Think it's written in T&CS...I'm not sure

which product don't have terms subject to changes? it's all about grabbing the fruits before they turn sour... with rates everywhere so low, I don't think there's any point waiting. if rates drop and it's no longer worth it, move on.

 

[reddevil0728]

Again. I know ask alot of times liao.

What are the better choice for rsp?

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there’s no such thing as “better”

Each got their on risk returns profile.

 

[oceanicmanta]

This is equivalent to 0.54% p.a. interest rate for 50k (or 0.27% p.a. for 100k). And he's free to top-up the 50k (or 100k) to Singlife, ELASTIQ or other products to get another 1.0%~1.8% p.a. interests. So total interest rate is 1.54%~2.24% p.a for 50k (or 1.27%~2.07% p.a. for 100k). If the interest rate from Multiplier is lower than this, it's worth to convert.

it's not correct that 50k gets 2.24%pa or 2.34%pa ... it's not additive, think there's a mistake.

The best for 50k is 1.8%pa in Elastiq, so might as well put all 50k there ... if blended with DBSM, the EIR will be lower than 1.8%.

For 100k, 50k @0.54% + 50k @1.8% gives 1.17%pa .. again the best for 100k is 1.8%pa in Elastiq, dont see how to get 2.07%pa

The above EIR is just slightly better if 10K is allocated to SingLife @2%. In excess of 10k, the 1% would lower the EIR.

 

[Squaredot]

seems like you'll have to restart from month 0... reapply again. yes this is probably the only risk to consider.



which product don't have terms subject to changes? it's all about grabbing the fruits before they turn sour... with rates everywhere so low, I don't think there's any point waiting. if rates drop and it's no longer worth it, move on.

Of course u can move if bonus rate falls, u just don't get your bonus interest lor. So what's the point of "committing" to SAYE 24months??
I will not continue discussion on SAYE

 

[TsukiSG]

Assume someone has $6,667 salary, $0.01 CC spending and $100 RSP, POSB Cashback Bonus will give $22.5 cashback per month ($20 from salary, $3 from ETF RSP minus $0.5 charge). This is equivalent to 0.54% p.a. interest rate for 50k (or 0.27% p.a. for 100k). And he's free to top-up the 50k (or 100k) to Singlife, ELASTIQ or other products to get another 1.0%~1.8% p.a. interests. So total interest rate is 1.54%~2.24% p.a for 50k (or 1.27%~2.07% p.a. for 100k). If the interest rate from Multiplier is lower than this, it's worth to convert.

it's not correct that 50k gets 2.24%pa or 2.34%pa ... it's not additive, think there's a mistake.

The best for 50k is 1.8%pa in Elastiq, so might as well put all 50k there ... if blended with DBSM, the EIR will be lower than 1.8%.

For 100k, 50k @0.54% + 50k @1.8% gives 1.17%pa .. again the best for 100k is 1.8%pa in Elastiq, dont see how to get 2.07%pa

The above EIR is just slightly better if 10K is allocated to SingLife @2%. In excess of 10k, the 1% would lower the EIR.

The calculation is blending of POSB Cashback Bonus with ELASTIQ. It is additive since you do not need to keep balance in DBS.

 

[oceanicmanta]

The calculation is blending of POSB Cashback Bonus with ELASTIQ. It is additive since you do not need to keep balance in DBS.

Yes, you are right !

The % return from POSB ** is cash back, not interest earned on balances.

My apologies.

 

[vsvs24]

There are some risks to SAYE. For instance, you can't withdraw in 2 years and must credit your salary every month.

BTW, you may also choose posb cashback+SAYE.

I won't want to be locked down for 2 yrs. Betting that rates will be better next year when digital banks start.

 

[Ca5per]

there’s no such thing as “better”

Each got their on risk returns profile.

I rmb there are 4 mentioned lesser risk one. What are they again?

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[reddevil0728]

I rmb there are 4 mentioned lesser risk one. What are they again?

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There are 4 ETFs...

lesser risk or not depends..

https://forums.hardwarezone.com.sg/...mutiplier-plan-5699929-131.html#post131874525

 

[tytyty333]

Simply invest $1000/m to bond RSP for 3-0.5=2.5% rebate. Sounds very nice.

The risk of a bond is relatively lower than STI or Reits.

 

[reddevil0728]

Simply invest $1000/m to bond RSP for 3-0.5=2.5% rebate. Sounds very nice.

The risk of a bond is relatively lower than STI or Reits.

Not if interest rate goes up.

 

[Ca5per]

There are 4 ETFs...

lesser risk or not depends..

https://forums.hardwarezone.com.sg/...mutiplier-plan-5699929-131.html#post131874525

Oh, so good etfs also eligible for the posb cashback right?

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[reddevil0728]

Oh, so good etfs also eligible for the posb cashback right?

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Valid for POSB Invest-Saver, Unit Trust Lump Sum Investments, and Unit Trust Regular Savings Plan purchased after joining POSB Cashback Bonus

"POSB Invest-Saver"

 

[Ca5per]

Valid for POSB Invest-Saver, Unit Trust Lump Sum Investments, and Unit Trust Regular Savings Plan purchased after joining POSB Cashback Bonus

"POSB Invest-Saver"

So only rsp is valid for posb cashback?

I am so confused . Haha

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[reddevil0728]

So only rsp is valid for posb cashback?

I am so confused . Haha

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did you visit the website to see what's under the investment category? if you didn't i suggest you go take a look. a lot of useful information there.

 

[Ca5per]

did you visit the website to see what's under the investment category? if you didn't i suggest you go take a look. a lot of useful information there.

Yes i did, but i don't understand.

Is etf = rsp? Lol

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