Lastest S$ Deposit updates - Part 3

tiertime

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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
 

yongsaver

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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. :o....lucky something click inside my brain the last 2 weeks and now smarter liao..:s13:
 

LexusIS

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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. :o....lucky something click inside my brain the last 2 weeks and now smarter liao..:s13:

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
 

yongsaver

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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. :s22:

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..:s13: i worry more about them not paying than the price of bonds dropping. :D

My goto page for initial bond selection....only company listed there qualify for further analysis. :s13:

https://www.temasek.com.sg/en/what-we-do/our-portfolio.html
 

LexusIS

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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. :s22:

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..:s13: i worry more about them not paying than the price of bonds dropping. :D

My goto page for initial bond selection....only company listed there qualify for further analysis. :s13:

https://www.temasek.com.sg/en/what-we-do/our-portfolio.html

Good that you consider everything. :)

Interest rate is expected to trend up for the next few years with expected 1 rate hike this yr and 2-3 next yr. This will affect bond prices and when rates goes up, chances of it getting called will also decrease as their cost of borrowing will be higher if the company/Govt called it and borrow from market.

So just need to plan for alternative cash holding, if not you might be hit with drop in bond price when you need cash (eg property investment, emergency etc)
 

yongsaver

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Good that you consider everything. :)

Interest rate is expected to trend up for the next few years with expected 1 rate hike this yr and 2-3 next yr. This will affect bond prices and when rates goes up, chances of it getting called will also decrease as their cost of borrowing will be higher if the company/Govt called it and borrow from market.

So just need to plan for alternative cash holding, if not you might be hit with drop in bond price when you need cash (eg property investment, emergency etc)

agree. one should not dump everything into just one instrument, it should form part of the overall portfolio. my portfolio used to be overweighted in cash till couple of weeks ago when i kicked myself for overly kiasi...:s13:

last time
40% - real estate
60% - cash

my plan:
40% - real estate
20% cash
40% - Bonds
less than 1% in stocks..kiasi...:s13:

the interesting thing about SG IR is that it tracks the USD/SGD exchange rate...so there are ups and downs eventhough the general expectation of ir is up. i suspect that is partly the reason why the net effect on retail FD rates is very slow and we in this thread kpkb why retail FD rates move up so slow....worse, some even move down when u thought its going up...e.g. ICBC last month offering 1.85% FD rate for 1 year, this month went down to 1.65%.:s22: so IR movement is not so straightforward..and a perpetual bond with low coupon rate may still have a chance to be called. :D
 

kookymonster

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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. :o....lucky something click inside my brain the last 2 weeks and now smarter liao..:s13:


Hi, can share how to become accredited investor?
 

K202020K

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Need to go down to branch to sign a form. Very troublesome.
That's easy yo .... but UOB sure got some catches somewhere .... not known to be generous with their offerings. Usually will skip their ads one. Ha ha ....
 

K202020K

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Bonds the maturity so long .... my investment horizon is not exceeding 3 years. By then, don't know whether still alive or not .... 哈哈。
 

yongsaver

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K202020K

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I think those who bought Hyflux bonds issued by DBS Bank now already GG liao .... ha ha .... Govt linked corporation also what .... now how?
 

yongsaver

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Sure? .... my friend once told me that the EDB is invested in Hyflux. Maybe just a small holdings nia lah.

govt linked means got shares..do check their annual report to see who their major shareholders are.
 
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