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Citibank Maxigain Savings Account

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Old 01-05-2018, 11:23 AM   #2461
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An interesting strategy just came to mind. We know that the T&Cs regarding withdrawals are as follows:

"If your lowest balance in the current month is lower than the lowest balance in the previous month, the Counter will reset..."

Therefore imagine this:

Month 1 to 12 - $15,000 (plus a little interest here and there, but assume $15,000 for ease of discussion) - this is the period where we are clocking the 12 counters.

Month 13 - Top up to $150,000 - the lowest balance for this month is not $150,000 but $15,000 since it was $15,000 on the 1st day of Month 13 before you topped it up to $150,000.

Month 14 - Withdraw $135,000 - lowest balance for this month is $15,000, which is not lower than lowest balance for Month 13, which is also $15,000 therefore no counter penalty applies.

Month 15 - Top up back to $150,000 - again the lowest balance for this month will not be lower than Month 14.

Rinse & Repeat


Therefore, you will be getting the full bonus interest for $150,000 for all the odd months, and bonus interest for $15,000 for all the even months. This gives you the flexibility to "liquidize" $135,000 for whatever purpose you require at half the interest potential.

If you have a second Maxigain account, you could then switch this $135,000 between both accounts every month after the 12th and get the bonus interest for all odd and even months. You will also not suffer the illiquid situation if you ever need to use the $135,000. Both accounts will stay at 12 counters all the time since the lowest balance of both accounts for all months will be $150,000

Does the above strategy work?
Nope, it doesn't as the lowest balance is 15k. From the FAQ:

How is bonus interest calculated?

...

The Counter increases by 1 each time the Bonus Interest Rate steps up. The Bonus Interest Rate steps up in a month if the lowest balance in that month is equal to or greater than the lowest balance in the preceding month. Bonus interest is computed based on the preceding month's lowest balance and number of calendar days in the preceding month. The lowest amount of funds in your MaxiGain account at any point in time in a month shall be the "lowest balance" of that month.
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Old 01-05-2018, 11:30 AM   #2462
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I take it that you concur that the strategy is viable?

And btw, the target audience in this thread already fit the profile you described, ie they have $150k and wish to put it into this. Further, it only takes less than 5 minutes to implement it every month, not unlike people who are using similar strategies for SCB eSaver and HSBC Step Up.

If you do not fit the profile, then it is always open to you not to participate in it.
u sld also calculate if it is worth it to do so much to earn half the interest on 135k rather than jus letting the counter drop to 6 when the need to liquidise arise.
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Old 01-05-2018, 11:43 AM   #2463
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The second half of the strategy says that you can put the 135k into another Maxigain account so as to get the full interest on $135k during the even months.

u sld also calculate if it is worth it to do so much to earn half the interest on 135k rather than jus letting the counter drop to 6 when the need to liquidise arise.
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Old 01-05-2018, 11:46 AM   #2464
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Thanks for the information, at least this is more useful than the wet blanket comments that have absolutely no analytical substance.

The implications of the term you have highlighted also means that the $135k topup must happen on the last day of the 12th month, and not the 1st day of the 13th month.

Strangely though, I did the topup on the 2nd day of the 13th month (2nd Apr) and got the full interest, bonus and all.

Nope, it doesn't as the lowest balance is 15k. From the FAQ:

How is bonus interest calculated?

...

The Counter increases by 1 each time the Bonus Interest Rate steps up. The Bonus Interest Rate steps up in a month if the lowest balance in that month is equal to or greater than the lowest balance in the preceding month. Bonus interest is computed based on the preceding month's lowest balance and number of calendar days in the preceding month. The lowest amount of funds in your MaxiGain account at any point in time in a month shall be the "lowest balance" of that month.
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Old 01-05-2018, 11:49 AM   #2465
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The second half of the strategy says that you can put the 135k into another Maxigain account so as to get the full interest on $135k during the even months.
then ur lowest balance (and thus ur interest) will jus be 15k for both acc on all months regardless of which day u transfer.
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Old 01-05-2018, 11:53 AM   #2466
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then ur lowest balance (and thus ur interest) will jus be 15k for both acc on all months regardless of which day u transfer.
Anyway his strategy is to maximise his liquidity needs while trying to play around with the lowest balance bonus interest

Actually if really want to play around, can do it at the month 6 to 8,

($150,000x0.6%x28/365 + $15,000x0.7%x28/365)is definitely better than ($15,000x1.2%x28/365)x2

$77 vs $27

Last edited by Sinkie; 01-05-2018 at 11:55 AM..
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Old 01-05-2018, 11:54 AM   #2467
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then ur lowest balance (and thus ur interest) will jus be 15k for both acc on all months regardless of which day u transfer.
Yup, lowest balance will always be 15k, thus bonus interest will always be based on 15k, not 150k. This method simply does not work if the aim is to earn bonus interest on 150k
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Old 01-05-2018, 11:56 AM   #2468
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Yup, lowest balance will always be 15k, thus bonus interest will always be based on 15k, not 150k. This method simply does not work if the aim is to earn bonus interest on 150k
To earn bonus interest on $150,000, in exchange for sacrificing your $150,000 liquidity needs
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Old 01-05-2018, 06:29 PM   #2469
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TMD, my 250 sign up bonus not here and I got other plans to use the money... I sign up on 3jan and promised mid apr I will get it Lor
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Old 01-05-2018, 08:04 PM   #2470
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To earn bonus interest on $150,000, in exchange for sacrificing your $150,000 liquidity needs
pls don't judge others on how they chose to use their money. u're assuming we're stupid enough to lock up our only remaining cash into this account and hence do not enjoy 'liquid' cash when we need it.

1. some of us have more than $150k to play with and this is just one portion of it.
2. even if emergency calls and we need the $150k, it is not locked up. one can withdraw any amount and just 'reset' the counter to 6.

i don't see it as a 'sacrifice' at all.
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Old 01-05-2018, 08:15 PM   #2471
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pls don't judge others on how they chose to use their money. u're assuming we're stupid enough to lock up our only remaining cash into this account and hence do not enjoy 'liquid' cash when we need it.

1. some of us have more than $150k to play with and this is just one portion of it.
2. even if emergency calls and we need the $150k, it is not locked up. one can withdraw any amount and just 'reset' the counter to 6.

i don't see it as a 'sacrifice' at all.
What talking you or or what drug you on??

I myself have 2 maxigain accounts, 1 account at 12 and another at 8 earning bonus interest also leh lol

And please also highlight which part of my post that say I am stupid enough to trap my excess playable fund in my 2 maxigain??

Last edited by Sinkie; 01-05-2018 at 08:17 PM..
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Old 01-05-2018, 08:50 PM   #2472
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What talking you or or what drug you on??

I myself have 2 maxigain accounts, 1 account at 12 and another at 8 earning bonus interest also leh lol

And please also highlight which part of my post that say I am stupid enough to trap my excess playable fund in my 2 maxigain??
no i'm not on drugs...

if you have 2 such accounts then i'm bewildered why you make such a remark (sacrificing liquidity). r u regretting or something? maybe u want to elaborate on your remark before people misinterpret the message behind your remark.

if i have that much liquid cash i would open multiple accounts too.
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Old 01-05-2018, 09:23 PM   #2473
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no i'm not on drugs...

if you have 2 such accounts then i'm bewildered why you make such a remark (sacrificing liquidity). r u regretting or something? maybe u want to elaborate on your remark before people misinterpret the message behind your remark.

if i have that much liquid cash i would open multiple accounts too.
I think It's a mental thing. It's like 好不容易熬到 counter 12 then because u need liquidity like $5000 urgently and your counter will drop to 6 and then subsequently u need another $1000 your counter drops to 0

And there are some only have $150,000 but cannot "afford" to put in this maxigain bcos it will restrict them from using this $150,000 in other investment or needs that might come suddenly

That's why u see some just put $15,000 from counter 1 to 12, then max the $150,000 at counter 12

But come to think of it, each counter is like only $12.5 per month or $150
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Old 01-05-2018, 09:58 PM   #2474
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I think It's a mental thing. It's like 好不容易熬到 counter 12 then because u need liquidity like $5000 urgently and your counter will drop to 6 and then subsequently u need another $1000 your counter drops to 0
Erm ... why would the counter drop to 0 upon withdrawing another $1000?
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Old 01-05-2018, 10:00 PM   #2475
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I think It's a mental thing. It's like 好不容易熬到 counter 12 then because u need liquidity like $5000 urgently and your counter will drop to 6 and then subsequently u need another $1000 your counter drops to 0

And there are some only have $150,000 but cannot "afford" to put in this maxigain bcos it will restrict them from using this $150,000 in other investment or needs that might come suddenly

That's why u see some just put $15,000 from counter 1 to 12, then max the $150,000 at counter 12

But come to think of it, each counter is like only $12.5 per month or $150
ok.. i think i get what you mean... sorry that i'd misinterpreted your original remark about sacrificing liquidity.

i had commented as well that this is not an account where we should dump all our liquid cash into (assuming 150k or less), if u want to take full advantage of the bonus interest. maybe if one has only 150k savings, can put in 100k to earn the bonus interest and keep 50k completely liquid elsewhere like a cimb fastsaver account (1%) or something to tide over unexpected bills.

it's all about spreading out the funds to various types of products to maximize gains, and also maintaining mobility while managing the risks of each product.
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