HWZ Forums

Login Register FAQ Mark Forums Read

Lastest S$ Deposit updates - Part 3

Like Tree658Likes
Reply
 
LinkBack Thread Tools
Old 14-09-2018, 02:48 PM   #2251
Arch-Supremacy Member
 
havetheveryfun's Avatar
 
Join Date: Jul 2010
Posts: 16,846
i think will be coming to this thread less and less...

i am a super kiasi person, In the past, i only chased FD interest rate....after so many years, i began to realise FD savers are actually paid peanuts and i really stupid to settle for these low rates for so many years...

while FD is safe, there are also instruments out there which are not super risky but which pay higher rates. recently i have opted in as a accredited investor and began investing in higher yielding instruments...

for accredited investors:
1. wholesale bonds (250K)...can invest in HDB, Temasek etc quasi govt bonds...recent HDB series already 2.625% for 7 years. Some people may disagree but i think HDB is in fact safer than a typical bank. There are also mapletree series, ascendas series. all these are either temasek or JTC owned. so bloody safe if u ask me...
2. bond express (can invest as low as $5000 per lot)...about 20 bonds to choose from depending on risk appetite. in any case, if bonds tank, only lose $5K nia. can use it to create a bond portfolio.

for non accredited investors: (those with less than 250K to save)

Singapore Savings Bond...the go to best choice. to me its a hybrid - bond yields and yet operate like a savings acc. do not waste time with FD.

after i am all done with my reallocation, i figured i would nearly double my passive income and with not a very significant increase in risk...sweet!
Keyword is "accredited investor". Once you can become an "accredited investor", quite a lot of instruments will open up to you.
havetheveryfun is offline   Reply With Quote
Old 14-09-2018, 03:31 PM   #2252
Master Member
 
Join Date: Jun 2000
Posts: 4,338
i placed this FD online but didnt see an option for this why wait promotion?
https://www.cimbbank.com.sg/en/perso...t-i-promo.html
maumu is offline   Reply With Quote
Old 14-09-2018, 03:40 PM   #2253
Member
 
Join Date: Jan 2010
Posts: 218
Must one be Muslim to open this sort of "shariah compliant" FD? If not I think most people will opt for this rather the regular type

Sent from Samsung Galaxy Note 9 using GAGT
keemmeng is online now   Reply With Quote
Old 14-09-2018, 04:07 PM   #2254
Supremacy Member
 
Join Date: Feb 2013
Posts: 5,037
Must one be Muslim to open this sort of "shariah compliant" FD? If not I think most people will opt for this rather the regular type

Sent from Samsung Galaxy Note 9 using GAGT
No need to be a Muslim to open.

If u break the FD, shariah rules are actually quite favorable when compared to normal FD.
tmkedmw is offline   Reply With Quote
Old 14-09-2018, 07:57 PM   #2255
Master Member
 
tiertime's Avatar
 
Join Date: Jan 2011
Posts: 4,023
dun understand what is the point of have 2 types of FD for the bank, the shariah one and normal one, what is the actual purpose?

do they use customers funds going into the shriah accounts for some other 'investments' purpose that customers do not know of... ?
tiertime is offline   Reply With Quote
Old 14-09-2018, 08:09 PM   #2256
Member
 
Join Date: Nov 2005
Posts: 274
thanks. but when i opened my normal FD in online banking, there was no option of withdrawing the interest early.. strange that this is only for shariah accounts
luvpraline is offline   Reply With Quote
Old 14-09-2018, 09:20 PM   #2257
Member
 
Join Date: Jan 2010
Posts: 218
dun understand what is the point of have 2 types of FD for the bank, the shariah one and normal one, what is the actual purpose?

do they use customers funds going into the shriah accounts for some other 'investments' purpose that customers do not know of... ?
Does anyone have tried to make a Why Wait FD? Why would anyone deposit into the regular FD if the rates are same for both FD types..don't understand

Sent from Samsung Galaxy Note 9 using GAGT
keemmeng is online now   Reply With Quote
Old 14-09-2018, 10:14 PM   #2258
Arch-Supremacy Member
 
havetheveryfun's Avatar
 
Join Date: Jul 2010
Posts: 16,846
dun understand what is the point of have 2 types of FD for the bank, the shariah one and normal one, what is the actual purpose?

do they use customers funds going into the shriah accounts for some other 'investments' purpose that customers do not know of... ?
Does anyone have tried to make a Why Wait FD? Why would anyone deposit into the regular FD if the rates are same for both FD types..don't understand

Sent from Samsung Galaxy Note 9 using GAGT
to target different crowds lah...

some non muslim aunties and unkers dont know what is shariah only ma, so if they only have shariah, these aunties and unkers wont put their money with them.

if they only have normal, then muslims wont put their money with them.

its like u go to eat halal chicken rice, the chicken rice actually can be non-halal, just remove the halal cert. but the cooking etc is actually already halal, just no cert. so just slap the halal cert onto it, thats all, but it still the same chicken rice which can have 2 names depending on the situation.
maumu likes this.
havetheveryfun is offline   Reply With Quote
Old 15-09-2018, 09:28 AM   #2259
Member
 
Join Date: Aug 2005
Posts: 180
Which bank is offering best saving interest rate?

UOB HY 1.63%pa > SCB 1.6%pa. Any bank saving rate is higher than HY?
banyan8 is offline   Reply With Quote
Old 15-09-2018, 09:44 AM   #2260
Supremacy Member
 
Join Date: Jan 2013
Posts: 5,016
thanks. but when i opened my normal FD in online banking, there was no option of withdrawing the interest early.. strange that this is only for shariah accounts
T&C also did not mention when would the interest be credited.

wonder Why Wait .. referring to no need to queue only ?
oceanicmanta is offline   Reply With Quote
Old 15-09-2018, 09:52 AM   #2261
Master Member
 
Join Date: Feb 2008
Posts: 2,577
i think will be coming to this thread less and less...

i am a super kiasi person, In the past, i only chased FD interest rate....after so many years, i began to realise FD savers are actually paid peanuts and i really stupid to settle for these low rates for so many years...

while FD is safe, there are also instruments out there which are not super risky but which pay higher rates. recently i have opted in as a accredited investor and began investing in higher yielding instruments...

for accredited investors:
1. wholesale bonds (250K)...can invest in HDB, Temasek etc quasi govt bonds...recent HDB series already 2.625% for 7 years. Some people may disagree but i think HDB is in fact safer than a typical bank. There are also mapletree series, ascendas series. all these are either temasek or JTC owned. so bloody safe if u ask me...
2. bond express (can invest as low as $5000 per lot)...about 20 bonds to choose from depending on risk appetite. in any case, if bonds tank, only lose $5K nia. can use it to create a bond portfolio.

for non accredited investors: (those with less than 250K to save)

Singapore Savings Bond...the go to best choice. to me its a hybrid - bond yields and yet operate like a savings acc. do not waste time with FD.

after i am all done with my reallocation, i figured i would nearly double my passive income and with not a very significant increase in risk...sweet!
i think it's also dependent on your age and needs at that point in time.

if you're young but already attached or about to get married, you need a lot of liquidity in your savings. coz will need to spend on house, car, kids, insurance, parents' allowance etc etc. that's why many would prefer FDs where they just put in for 1 year or so. no need to commit too long for savings/investments.

if you're young and already decided you want to be single and alone all your life, or if you're already extremely rich (due to family background), then of course you can immediately jump into these plans you already have.
kurt111494 is offline   Reply With Quote
Old 15-09-2018, 10:50 AM   #2262
Master Member
 
tiertime's Avatar
 
Join Date: Jan 2011
Posts: 4,023
to target different crowds lah...

some non muslim aunties and unkers dont know what is shariah only ma, so if they only have shariah, these aunties and unkers wont put their money with them.

if they only have normal, then muslims wont put their money with them.

its like u go to eat halal chicken rice, the chicken rice actually can be non-halal, just remove the halal cert. but the cooking etc is actually already halal, just no cert. so just slap the halal cert onto it, thats all, but it still the same chicken rice which can have 2 names depending on the situation.
the could hv just made the normal FD also offer upfront interest, since sooner or later they are also going to credit to the customers and besides give upfront or give after 12 mths also cannot withdraw out until maturity

the sariah FD may have a differnt set of terms as normal FD customers are unaware of, unless ppl go read the whole T&C
tiertime is offline   Reply With Quote
Old 15-09-2018, 11:13 AM   #2263
Member
 
Join Date: Jun 2015
Posts: 326
i think it's also dependent on your age and needs at that point in time.

if you're young but already attached or about to get married, you need a lot of liquidity in your savings. coz will need to spend on house, car, kids, insurance, parents' allowance etc etc. that's why many would prefer FDs where they just put in for 1 year or so. no need to commit too long for savings/investments.

if you're young and already decided you want to be single and alone all your life, or if you're already extremely rich (due to family background), then of course you can immediately jump into these plans you already have.
yes. agree that age and stage of life is key consideration. i was obssessed with fd rates in the past, not daring to venture beyond it in terms of investment even when i was younger. the whole point of my rant is that for people with lesser than 200k to park, the SSB is the only place to do it (100K each with spouse),...use FD only when waiting for chance to park into SSB..it takes care of liquidity, give good rates and is safe. no fd comes close. for those with more money than that, get yourself accredited and access higher yielding instruments (no stocks, no structured instruments) with not much increase in risk. do not be like me who just chase FD in the past nia. ....lucky something click inside my brain the last 2 weeks and now smarter liao..
yongsaver is offline   Reply With Quote
Old 15-09-2018, 11:59 AM   #2264
Senior Member
 
Join Date: May 2008
Posts: 716
yes. agree that age and stage of life is key consideration. i was obssessed with fd rates in the past, not daring to venture beyond it in terms of investment even when i was younger. the whole point of my rant is that for people with lesser than 200k to park, the SSB is the only place to do it (100K each with spouse),...use FD only when waiting for chance to park into SSB..it takes care of liquidity, give good rates and is safe. no fd comes close. for those with more money than that, get yourself accredited and access higher yielding instruments (no stocks, no structured instruments) with not much increase in risk. do not be like me who just chase FD in the past nia. ....lucky something click inside my brain the last 2 weeks and now smarter liao..
Can consider Maxigain which is good. So while those highly rated bonds are good, do take care that bonds are inversely related to interest rates. As interest goes up it might impact bond prices
LexusIS is offline   Reply With Quote
Old 15-09-2018, 12:31 PM   #2265
Member
 
Join Date: Jun 2015
Posts: 326
Can consider Maxigain which is good. So while those highly rated bonds are good, do take care that bonds are inversely related to interest rates. As interest goes up it might impact bond prices
yes. thats a consideration. thats why must get those bonds which either have a fixed maturity date or if they are perps, there is a good chance they will be redeemed either on first call date or there is a reset or step-up to adjust the rates or force redemption. Also when ir rates rise, for new bond issues, the coupons have to go up also. e.g. HDB cant be expecting to issue new bonds at below 3% going forward if ir goes way up.

To me the most key consideration is default risk, not so much interest rate risk. the issuer is the most important thing for me as i am super kiasi.. i worry more about them not paying than the price of bonds dropping.

My goto page for initial bond selection....only company listed there qualify for further analysis.

https://www.temasek.com.sg/en/what-w...portfolio.html
yongsaver is offline   Reply With Quote
Reply
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 Terms of Service for more information.


Thread Tools

Posting Rules

Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are On