Deposit Acccounts & interests

[AnTiLooP]

There are alot of banks here that offer preferential interest rates on their deposit accounts and one of the commonalities I noticed is as follows (taken from SCB) :

... From now till 31 March 2017, earn up to 1.38% p.a. interest on eligible deposit balance of S$1 million with no lock-in period when you bring in incremental fresh funds* (compared to January 2017‘s average daily balance). Plus, receive up to S$1,800 when you start a Priority Banking relationship with us today1.

when they say bring in incremental fresh funds, does that mean that as long as the balance in the account in preceding months are higher than the former, that it will qualify you for the interest rate on the full balance you have?

 

[lzydata]

Roughly yes. The current offer is "(compared to January 2017‘s average daily balance)" so it works like this. Suppose in Jan you had an average daily balance of $1,000. On 1 Mar you transferred in $10,000 and kept it in there until 31 Mar. So the interest you earn for the month of Mar is:

Prevailing interest: 0.10% x $11,000 x 31/365 = $0.93
Bonus interest: 1.13% x $10,000 x 31/365 = $9.60

Both of these will be computed and added to your account on 31 Mar.

 

[AnTiLooP]

Roughly yes. The current offer is "(compared to January 2017‘s average daily balance)" so it works like this. Suppose in Jan you had an average daily balance of $1,000. On 1 Mar you transferred in $10,000 and kept it in there until 31 Mar. So the interest you earn for the month of Mar is:

Prevailing interest: 0.10% x $11,000 x 31/365 = $0.93
Bonus interest: 1.13% x $10,000 x 31/365 = $9.60

Both of these will be computed and added to your account on 31 Mar.

If thats the case then the bonus interest only applies to the additional fresh funds added to the account balance.

Sian

 

[sg_investor]

What will i get for April assume I dont put in any money in April.

How about I take out 5000?

Roughly yes. The current offer is "(compared to January 2017‘s average daily balance)" so it works like this. Suppose in Jan you had an average daily balance of $1,000. On 1 Mar you transferred in $10,000 and kept it in there until 31 Mar. So the interest you earn for the month of Mar is:

Prevailing interest: 0.10% x $11,000 x 31/365 = $0.93
Bonus interest: 1.13% x $10,000 x 31/365 = $9.60

Both of these will be computed and added to your account on 31 Mar.

 

[henrylbh]

If thats the case then the bonus interest only applies to the additional fresh funds added to the account balance.

Sian

Sian? GFY

 

[lzydata]

What will i get for April assume I dont put in any money in April.

How about I take out 5000?

Technically their promotion ends on 31 March. But assuming it went on till April, bonus interest is paid on $x minus the average daily balance in January, which is a fixed number. If you take out $5k you will get bonus interest for the remaining fresh funds of $5k.

 

[sg_investor]

I see thank you.

Technically their promotion ends on 31 March. But assuming it went on till April, bonus interest is paid on $x minus the average daily balance in January, which is a fixed number. If you take out $5k you will get bonus interest for the remaining fresh funds of $5k.