ocbc 360 account

[CHEETT]

interesting thread

 

[appledabble]

1.2% on $7,500 though not exactly $7,500 since it is taking an average so depending on when your salary is credited in. But u get the idea that it is not on the incremental value.

Thank u. Yes , I get the idea have a nice day

 

[thesoftwarekid]

This is the reply from OCBC re late reflection of FAST transfer on a WEEKDAY:

"When transaction is performed after 21:40hrs on 2 April 2015, the posting date is 3
April 2015 and business date is 4 April 2015.
Business date refers to the effective date of the balance in your
account.
Interest will be calculated based on the balance of your account
starting from the effective date."

Lesson Learnt: DO NOT make any FAST transfer into or out of OCBC accounts after 940pm (2140hrs)

I can double confirmed that, transferred 2000 on a sat night, which I cant remember was it before or after 2140 but the value date was stated on the following Monday. Haha should have transferred it on Monday instead

 

[The_Only_Yong]

on the paper itself it says that the salary must be 2k and above to receive the 1.2% pa. is it based on gross or take home?

the second criteria was that i have to spend 500 per month and pay 3 bills per month right?
does paying the bills count as spending?
or does paying for my investment counted as spending?

and the other criteria of increasing the balance from before. what is the minimum difference?

 

[wts2013]

on the paper itself it says that the salary must be 2k and above to receive the 1.2% pa. is it based on gross or take home?

the second criteria was that i have to spend 500 per month and pay 3 bills per month right?
does paying the bills count as spending?
or does paying for my investment counted as spending?

and the other criteria of increasing the balance from before. what is the minimum difference?

so long the giro salary credit amt shown on your bank account is 2k and above, if you charge your bills to the cc, then is considered cc spend, then u still need to make 3 bill payments against your bank account balance, incremental balance is the difference between current mth balance vs previous mth's average balance.

 

[The_Only_Yong]

thank you so much. hahaa

 

[zoossh]

Hello.

I just opened the 360. Would like to seek some clarification :

Hypothetical Scenario:
Account opened - 15 July 15
Account balance - $5000 since 15 July 15
Salary per month - $2500
Inform HR and first salary to be credited in August 15

Question: based on just the 1.2% p.a. for salary credit (ignore other eligible criteria), for the month of August, will a person earn 1.2% p.a on the $2500 salary only, or will the person earn 1.2% p.a. on $7500?

Thanks.

Use the concept of day end balance

1.2% per annum divide by 365 to get per day interest rate

First half aug everyday day end balance is 5k
2nd half aug is 7.5k

U get interest based on balance everyday, with the rate applied and then monthly interest given. Different banks give interest differently but generally the base rate is given end aug and bonus rate given early sep. For 360, base rate is 0.05% and salary bonus rate of 1.2% is given on 7th working day of early sep. If u fulfil the criteria in aug, the 1.2 pa will apply on everyday of aug on the balance of each day.

 

[thesoftwarekid]

Use the concept of day end balance

1.2% per annum divide by 365 to get per day interest rate

First half aug everyday day end balance is 5k
2nd half aug is 7.5k

U get interest based on balance everyday, with the rate applied and then monthly interest given. Different banks give interest differently but generally the base rate is given end aug and bonus rate given early sep. For 360, base rate is 0.05% and salary bonus rate of 1.2% is given on 7th working day of early sep. If u fulfil the criteria in aug, the 1.2 pa will apply on everyday of aug on the balance of each day.

Take note that your day end balance is affected by the following:

1) Fast transfer done after certain timing will be set to the next day.
2) Deposits done on Sundays, no matter through counter or cash deposit machine will be only accountable into your account the next day or the next business day.

It is best to see the e-statement that OCBC provides you after each month to see the day to day balance as well as the average monthly balance.

 

[The_Only_Yong]

so long the giro salary credit amt shown on your bank account is 2k and above, if you charge your bills to the cc, then is considered cc spend, then u still need to make 3 bill payments against your bank account balance, incremental balance is the difference between current mth balance vs previous mth's average balance.

Just to clarify. CC = credit card right? But mine is debit card. Just spend 500 using the debit is the same right?

 

[hyperbole]

No, debit card spending not counted for bonus interest

 

[The_Only_Yong]

No, debit card spending not counted for bonus interest

Thank you! Ok then for the increment of the bank balance each month right? So what is the date that they took as reference?

 

[phayze]

The interest is only for the incremental amount, not the full amount.

Thank you! Ok then for the increment of the bank balance each month right? So what is the date that they took as reference?

 

[wts2013]

Thank you! Ok then for the increment of the bank balance each month right? So what is the date that they took as reference?

Eg: July - ocbc will calculate the average mthly balance = add daily balances/30 = 30k

Aug 2 daily balance = 40k, difference 40-30=10k will earn 1%/365

the best way to earn this incremental balance interest is to empty the account every alternate mth, eg July balance =0, so all monies in Aug will earn 0.05%+1%+0.5%+0.5%+1.2%=3.25%

for me is worth it cos I only earn 1.05%, so alternate mths I can earn 2.05%, but if u have salary, then u will get 2.25% -might not be worth it.

 

[The_Only_Yong]

Eg: July - ocbc will calculate the average mthly balance = add daily balances/30 = 30k

Aug 2 daily balance = 40k, difference 40-30=10k will earn 1%/365

the best way to earn this incremental balance interest is to empty the account every alternate mth, eg July balance =0, so all monies in Aug will earn 0.05%+1%+0.5%+0.5%+1.2%=3.25%

for me is worth it cos I only earn 1.05%, so alternate mths I can earn 2.05%, but if u have salary, then u will get 2.25% -might not be worth it.

ok i kinda start to get it now BUT im sorry can you break it down even more? as im not very good at this. currently my salary dont have take home 2k YET so i cant gain the 1.5% so im only going to make use of the 1% increment of balance.

so correct me if im wrong. what you mean is that i should put money in this month, empty next month, then put in all the following month. is it?

 

[zoossh]

ok i kinda start to get it now BUT im sorry can you break it down even more? as im not very good at this. currently my salary dont have take home 2k YET so i cant gain the 1.5% so im only going to make use of the 1% increment of balance.

so correct me if im wrong. what you mean is that i should put money in this month, empty next month, then put in all the following month. is it?

example
account A - single (yong), 3 giro
account B - joint (yong/wts2013), 3 giro
balance = 20k
total no of giro needed = 6
interest = 1% (incremental) + 0.5% (giro) + 0.05% (base int)

Sep
account A = 20k
account B = 0
interest = (1.55/100 * 30/365 * 20k) + 0
transfer out of A on 1st Oct

Oct
account A = 0
account B = 20k
interest = 0 + (1.55/100 * 31/365 * 20k)
transfer out of B on 1st Nov

Nov
account A = 20k
account B = 0
interest = (1.55/100 * 30/365 * 20k) + 0
transfer out of A on 1st Dec

above is an over-simplified example. the above assume that
- all giro are each top-up and deducted on the same day
- 1st of Sep, Oct, Nov, Dec all falls on non-PH weekends

 

[The_Only_Yong]

example
account A - single (yong), 3 giro
account B - joint (yong/wts2013), 3 giro
balance = 20k
total no of giro needed = 6
interest = 1% (incremental) + 0.5% (giro) + 0.05% (base int)

Sep
account A = 20k
account B = 0
interest = (1.55/100 * 30/365 * 20k) + 0
transfer out of A on 1st Oct

Oct
account A = 0
account B = 20k
interest = 0 + (1.55/100 * 31/365 * 20k)
transfer out of B on 1st Nov

Nov
account A = 20k
account B = 0
interest = (1.55/100 * 30/365 * 20k) + 0
transfer out of A on 1st Dec

above is an over-simplified example. the above assume that
- all giro are each top-up and deducted on the same day
- 1st of Sep, Oct, Nov, Dec all falls on non-PH weekends

Thank you!!

 

[saintgtril]

Eg: July - ocbc will calculate the average mthly balance = add daily balances/30 = 30k

Aug 2 daily balance = 40k, difference 40-30=10k will earn 1%/365

the best way to earn this incremental balance interest is to empty the account every alternate mth, eg July balance =0, so all monies in Aug will earn 0.05%+1%+0.5%+0.5%+1.2%=3.25%

for me is worth it cos I only earn 1.05%, so alternate mths I can earn 2.05%, but if u have salary, then u will get 2.25% -might not be worth it.

Hi wts2013 and all, does that mean to say

1. it is not worth emptying Account A (to transfer to Account B) for the "incremental balance interest" if one is entitled to the salary interest?
2. if the above is true, is there any other mean to earn the "incremental balance interest" for people whom are entitled to the salary interest?

For (2), i think if one has 60K in the account, it does not make financial sense to have a balance of more than 60K just to earn the "incremental balance interest".

I appreciate any comments, thoughts ...

 

[Yo2020]

example
account A - single (yong), 3 giro
account B - joint (yong/wts2013), 3 giro
balance = 20k
total no of giro needed = 6
interest = 1% (incremental) + 0.5% (giro) + 0.05% (base int)

Sep
account A = 20k
account B = 0
interest = (1.55/100 * 30/365 * 20k) + 0
transfer out of A on 1st Oct

Oct
account A = 0
account B = 20k
interest = 0 + (1.55/100 * 31/365 * 20k)
transfer out of B on 1st Nov

Nov
account A = 20k
account B = 0
interest = (1.55/100 * 30/365 * 20k) + 0
transfer out of A on 1st Dec

above is an over-simplified example. the above assume that
- all giro are each top-up and deducted on the same day
- 1st of Sep, Oct, Nov, Dec all falls on non-PH weekends

instead 6 giro to 6 diff billing companies, 1 easy alternative is to set up 3 giro to 3 diff billing companies on 1 acct. n then on another acct, set up 3 recurring online payments (eg. to pay $20) to the same billing companies as the 1st acct! but rem to set to pay it at least 10 days b4 the giro deduction date!!

 

[zoossh]

instead 6 giro to 6 diff billing companies, 1 easy alternative is to set up 3 giro to 3 diff billing companies on 1 acct. n then on another acct, set up 3 recurring online payments (eg. to pay $20) to the same billing companies as the 1st acct! but rem to set to pay it at least 10 days b4 the giro deduction date!!

Actually I prefer to pay cc bills cos more control. Giro I leave it with maybank previously had one time off $100 rewards but now no good deals for giro.

The other thing abt giro is that it mess up my balance, adb and incremental bonus whenever i forget. Cc bills I credit in and pay bill immediately, leaving my balance untouched

 

[hyperbole]

I cancelled all giro now that I'm only using 360 on every alternate month.

I forgot I had linked giro for my frank card last month and I kena a giro failed admin fee of 30 bucks even though I had paid the bill in full before due date.

They subsequently reversed the charge but it's not worth the stress if you do switch accounts now and then.