FWIW I wouldn’t be in a rush to do this. Fixed deposit rates have cracked 4% — let’s assume 4.1% for 12 months at BOC — and 1 year fixed mortgage rates start around 4.25% (OCBC). Would I rush to grab ~15 basis points of interest rate spread? (And reduce liquidity?) No, I would not. I’d be kicking myself if (when?) mortgage interest rates come down below 2% and my OA dollars could be earning 2.5%, for example. It was possible to lock in 1.4% for 5 years not too long ago, and those borrowers are really happy now.
Singapore is just so weird this way. It’s as if nobody is looking at these rates. A fixed mortgage rate a mere 15 basis points above a comparable length fixed deposit rate just isn’t a cause for alarm.
Am I wrong?
my fixed rate ending this year (in a couple of months time). haha.
my remaining home loan is not substantial. it won't really change anything for my finances.
honestly +-1% of any interest (short term) won't change my quality of life. it is not like i have >$10m.
few hundred thousand dollars 1% is chump change. short term 12 months type.
anything is possible in the future.
right now - RHB 5.5% to 7% deal is the best short term cash savings account that i have come across.
then why is everyone looking at measly 4% short term promotions to park cash.
