ocbc 360 account

[dork32]

The incremental amount should also be included as part of the account balance, so you are not losing on other interest. Account balance should be $41000 in your example.

he is assuming

month 1: start account with 1000
month 2: deposit 40 000
month 3: end of the world

vs

month 1: start account with 41 000
month 2: end of the world

for us, our world carry on indefinitely.

 

[Squaredot]

i have try using the OCBC calculator,

if i place $1000 initial deposit, then the next mth i deposit $40,000, no doubt the incremental increase i get $33.97, but i lose out in other interest, so total interest i only get $35.44

But if i begining that time deposit $41,000, for that month i can earn ard $61.


Thus i don't think this method is worth it, cos you lose out in other interest. lol

is the other interest = bonus interest for salary credit 1.2% ?
(41k*1.75%*31 days about $61)
If yes, it is better to start with 41k.

 

[seveneleven]

is the other interest = bonus interest for salary credit 1.2% ?
(41k*1.75%*31 days about $61)
If yes, it is better to start with 41k.

No, what i mean is i try out using the OCBC calculator.

if i start off as $1000 on e.g. 1 May 2016
- credit salary interest (1.2%) , earn $1.01
- Make 3 payment online (0.5%) , earn $0.42
- Incremental interest (1%), say if deposit $40,000 next mth (1 Jun 2016) , earn$33.97
Total earn = $35.44

vs

if i start off as $41,000 on e.g. 1 May 2016
- credit salary interest (1.2%) , earn $47.78
- Make 3 payment online (0.5%) , earn $17.41
- Incremental interest (1%), say only manage to save $100, earn $0.08
Total earn = $61.01

so my point is, whats the point in taking out the $40,000 and deposit it back the next month to earn that 1%, once you emptying the account, i assume your "credit salary interest (1.2%)" and "Make 3 payment online (0.5%)" will earn very little interest... no?

 

[Squaredot]

No, what i mean is i try out using the OCBC calculator.

if i start off as $1000 on e.g. 1 May 2016
- credit salary interest (1.2%) , earn $1.01
- Make 3 payment online (0.5%) , earn $0.42
- Incremental interest (1%), say if deposit $40,000 next mth (1 Jun 2016) , earn$33.97
Total earn = $35.44

vs

if i start off as $41,000 on e.g. 1 May 2016
- credit salary interest (1.2%) , earn $47.78
- Make 3 payment online (0.5%) , earn $17.41
- Incremental interest (1%), say only manage to save $100, earn $0.08
Total earn = $61.01

so my point is, whats the point in taking out the $40,000 and deposit it back the next month to earn that 1%, once you emptying the account, i assume your "credit salary interest (1.2%)" and "Make 3 payment online (0.5%)" will earn very little interest... no?

yes i get you.
That's why i said it is better for u to start with 41k if it is 1.2% bonus interest you are losing with only 1k deposit in the 1st month.

When your account balance exceed 60k, then u do the 1% incremental dance to earn more interest

 

[seveneleven]

The incremental amount should also be included as part of the account balance, so you are not losing on other interest. Account balance should be $41000 in your example.

If i start off with 1,000 then deposit $40,000 next month, meaning the input should be like that? LOL

 

[dork32]

If i start off with 1,000 then deposit $40,000 next month, meaning the input should be like that? LOL

the world does not end on 31 May 2016.

so what do you want to do in Jun 2016, Jul 2016, Aug 2016....? Trazora and all of us is doing our calculations for those months.

 

[OCBC Bank]

Its different policy and i am paying for my mum's too.. so i assume its all under difference bill /invoice number?

Hi seveneleven,

As long as the bill reference number differs, it will be counted as separate payments.

^DG

 

[OCBC Bank]

Want to setup another giro for my ocbc 360.

How to setup giro for UOB credit card?

Hi SBC,

You will have to get a GIRO application form from UOB.

^DG

 

[Trazora]

No, what i mean is i try out using the OCBC calculator.

if i start off as $1000 on e.g. 1 May 2016
- credit salary interest (1.2%) , earn $1.01
- Make 3 payment online (0.5%) , earn $0.42
- Incremental interest (1%), say if deposit $40,000 next mth (1 Jun 2016) , earn$33.97
Total earn = $35.44

vs

if i start off as $41,000 on e.g. 1 May 2016
- credit salary interest (1.2%) , earn $47.78
- Make 3 payment online (0.5%) , earn $17.41
- Incremental interest (1%), say only manage to save $100, earn $0.08
Total earn = $61.01

so my point is, whats the point in taking out the $40,000 and deposit it back the next month to earn that 1%, once you emptying the account, i assume your "credit salary interest (1.2%)" and "Make 3 payment online (0.5%)" will earn very little interest... no?

Say for example you have another savings account A that earns you 1.6% interest.

Scenario 1 (alternate account)
if i start off as $3000 in OCBC 360 and $40000 in account A on 1 May 2016
- credit salary interest (1.2%) , earn $3.03
- Make 3 payment online (0.5%) , earn $1.26
- Base interest (0.05%), $0.12
- Interest on account A, $54.36
Total earn in May = $58.77

then $40k transfer to OCBC 360 in Jun, total balance 43k incremental 40k
- credit salary interest (1.2%) , earn $43.82
- Make 3 payment online (0.5%) , earn $18.26
- Base interest (0.05%), $1.82
- Incremental bonus, earn $33.97
Total earn in Jun = $97.87

Average interest monthly = $78.32

Scenario 2 (leave in OCBC 360)
$43000 on 1 May 2016
- credit salary interest (1.2%) , earn $43.82
- Make 3 payment online (0.5%) , earn $18.26
- Base interest (0.05%), $1.82
Total earn in May = $63.90 <$78.32

Conclusion: Scenario 1 (alternate account) is better. Note that this conclusion is based on assumption that savings account A yields 1.6% interest, conclusion may change when assumption change.

 

[Trazora]

If i start off with 1,000 then deposit $40,000 next month, meaning the input should be like that? LOL

Yes. If you maintained $1000 in May and transfer $40k in on 1st Jun, maintaining $41k in Jun. This is the inputs for the interest calculation in Jun.

 

[Trazora]

yes i get you.
That's why i said it is better for u to start with 41k if it is 1.2% bonus interest you are losing with only 1k deposit in the 1st month.

When your account balance exceed 60k, then u do the 1% incremental dance to earn more interest

Isn't it easier and better to open another saving account that give more than 1% interest?

 

[Squaredot]

Isn't it easier and better to open another saving account that give more than 1% interest?

True also, if another savings account gives more than 1.05%

 

[Trazora]

True also, if another savings account gives more than 1.05%

Oh yah 1.05%

 

[zoossh]

i have try using the OCBC calculator,

if i place $1000 initial deposit, then the next mth i deposit $40,000, no doubt the incremental increase i get $33.97, but i lose out in other interest, so total interest i only get $35.44

But if i begining that time deposit $41,000, for that month i can earn ard $61.


Thus i don't think this method is worth it, cos you lose out in other interest. lol

i never used the calculator cos u dunno how they work. i use my phone to calculate. in short, if u credit salary and do 3 payments per month, that gives u 1.75% pa. if u happy, u do leave it as such and not do any transfer.

if not, u can have 2 accounts both with salary crediting, provided u have 0 balance in one account every alternate month, u get 2.75. (the mathematics gets confusing if one 360 account had no salary crediting, and if there is no zero balance, but i shall not touch on that to avoid more confusion)

if u cant have 2, then u can open other bank accounts (assume rate is x%) elsewhere. go and calculate the average of every two months, (2.75 + x)/2. e.g. scb esaver at 1.4 with ocbc 360 gives average of 2.075.

if still too confusing to understand the above paragraphs, do the hard way by tabulating excel spreadsheet.

scenario 1:
account A (bal x rate) + account B (bal x rate) in month 1
account A (bal x rate) + account B (bal x rate) in month 2
total income is ...

scenario 2:
account A (bal x rate) + account B (bal x rate) in month 1
account A (bal x rate) + account B (bal x rate) in month 2
total income is ...

you can vary the balance and changes in rates in various accounts, then see which scenario give u highest overall interest.

 

[seveneleven]

Yes. If you maintained $1000 in May and transfer $40k in on 1st Jun, maintaining $41k in Jun. This is the inputs for the interest calculation in Jun.

Hmmm, confirm that the below scenario is true? You try before?

May start off as $1,000.
Then $40k transfer to OCBC 360 in Jun, total balance 43k incremental 40k
- credit salary interest (1.2%) , earn $43.82
- Make 3 payment online (0.5%) , earn $18.26
- Base interest (0.05%), $1.82
- Incremental bonus, earn $33.97
Total earn in Jun = $97.87


Cos all along i thought that those $$ you transfer in June will only be treated as incremental bonus ($40,000) and the other interest will only kick in on the next month, July...

But If workable then i will give it a try..lol

 

[flyboy]

Hmmm, confirm that the below scenario is true? You try before?

May start off as $1,000.
Then $40k transfer to OCBC 360 in Jun, total balance 43k incremental 40k
- credit salary interest (1.2%) , earn $43.82
- Make 3 payment online (0.5%) , earn $18.26
- Base interest (0.05%), $1.82
- Incremental bonus, earn $33.97
Total earn in Jun = $97.87


Cos all along i thought that those $$ you transfer in June will only be treated as incremental bonus ($40,000) and the other interest will only kick in on the next month, July...

But If workable then i will give it a try..lol

Please be aware that the minimum daily average balance must be >$3000 in a month to prevent fall below fee.

 

[Trazora]

Hmmm, confirm that the below scenario is true? You try before?

May start off as $1,000.
Then $40k transfer to OCBC 360 in Jun, total balance 43k incremental 40k
- credit salary interest (1.2%) , earn $43.82
- Make 3 payment online (0.5%) , earn $18.26
- Base interest (0.05%), $1.82
- Incremental bonus, earn $33.97
Total earn in Jun = $97.87


Cos all along i thought that those $$ you transfer in June will only be treated as incremental bonus ($40,000) and the other interest will only kick in on the next month, July...

But If workable then i will give it a try..lol

confirm. Salary crediting, pay bill, card spend and investment/loan bonus interest applies for average daily balance less than $60k (regardless incremental or not). In addition, incremental bonus interest applies to the incremental amount also. Base interest applies to the whole average daily balance amount.

As mentioned by others, fall below fee of S$2 (waived for the first year), will be charged if average daily balance is less than $3000.

 

[zoossh]

Please be aware that the minimum daily average balance must be >$3000 in a month to prevent fall below fee.

that applies in the second year of account opening

 

[heng_ah]

Hmmm, confirm that the below scenario is true? You try before?

May start off as $1,000.
Then $40k transfer to OCBC 360 in Jun, total balance 43k incremental 40k
- credit salary interest (1.2%) , earn $43.82
- Make 3 payment online (0.5%) , earn $18.26
- Base interest (0.05%), $1.82
- Incremental bonus, earn $33.97
Total earn in Jun = $97.87


Cos all along i thought that those $$ you transfer in June will only be treated as incremental bonus ($40,000) and the other interest will only kick in on the next month, July...

But If workable then i will give it a try..lol

Where have you been my friend?
This strategy has been discussed over and over again. And it's workable. This is the only saving grace for ocbc 360.

People are moving away from ocbc 360 to other banks when they reduced the bonus rates, by adding useless bonus from Insurance and Investment.

If they discontinue bonus from Incremental Balance, then that's the end for 360.

 

[dork32]

Where have you been my friend?
This strategy has been discussed over and over again. And it's workable. This is the only saving grace for ocbc 360.

People are moving away from ocbc 360 to other banks when they reduced the bonus rates, by adding useless bonus from Insurance and Investment.

If they discontinue bonus from Incremental Balance, then that's the end for 360.

this guy is a junior member. he just joined this year