- Jul 16, 2010
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Just sharing how I am optimising non locked-in (ie non FD) interest rates. Based on single person with a salaried income. Happy to hear and learn any other ideas on how to maximise non locked-in interest income.
Since I have only 1 salary credit a month, I chose a bank which requires salary crediting and another one which does not require salary crediting to get 2 accounts which benefit from higher rates which does not require me to lock-in my funds for any period of time.
(1) Max out ($50K) the DBS Multiplier a/c - (i) salary crediting plus at least any 2 of the following (ii) mortgage payments or (iii) credit card spend or (iv) insurance or (v) investments to get the maximum 3.50% pa interest rate (DBS is based on total value of eligible transactions rather than number of eligible transactions for each category). To hit the top rate, value needs to hit $30K per month (2nd highest tier is 2.30% at $15K).
(2) Max out ($75K) the UOB One a/c - (i) credit card spend of $500 and at least either 1 of the following (ii) salary credit or (iii) 3 GIROs to get the effective 2.436% pa interest rate (tiered from 1.85% to 3.88%). This is very easy to meet but the max effective interest rate is lower than DBS.
(3) Balance put inside MBB iSavvy a/c - they will pay 1.90% pa interest for Dec (progressively increased from earlier months). After Dec, depending on their promo, may have to move to another bank. This money is intended for emergency funds, future mortgage prepayment or investments.
As my DBS a/c is my main operating account (where all my income goes in), I auto transfer a sum on a monthly basis from DBS to UOB that is adequate to pay for the credit card and GIRO expenses charged to my UOB One a/c. This way, I still maintain DBS as my main operating a/c yet get to enjoy another higher tier a/c in UOB without entailing too much hassle (only need to spend $500 monthly on the credit card) and everything else is automated.
you should create a separate thread for this, maybe can get more views and opinions.
for 3), can check out stanchart eSaver (currently rates are lower than MayBank but my personal opinion that it will increase for the Dec-Jan period). Also Citibank maxigain but you need to wait 1 year to maximize the counters wait.. but its worth it as some of them are already getting ~2.4% without having to fulfil much criteria compared to DBS Multiplier, OCBC 360 etc..
CIMB online fixed deposit is currently also giving 1.90% for 1 year.
lastly can check out singapore savings bonds. the current month one is 1.89% for the 1st year and by estimation, the next month's 1 year rate is highly likely going to hit 2% : http://isimplicity.tk/ssb/ ... the downside is you may not get 100% of what you subscribe for.