x9evolution
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Yes , will lost a month of Save interest
ocbc 360 account
- Thread starter dork32
- Start date
70niner
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At 4.65% for 100k, even if u steadily increase the balance to $120k, u can still get EIR of 3.88%, which is higher than most conventional high yield savings acct in the market
the additional 20k translates to 40 months of balance increase at $500 per mth. Thus u only need to rest the balance to 100k every 3 -4 years and sacrifice 1 month of 'Save' bonus
guess that will be my current strategy to minimise loss of 'Save' bonus, pending any other comparable low-risk savings account from other financial institutions
the additional 20k translates to 40 months of balance increase at $500 per mth. Thus u only need to rest the balance to 100k every 3 -4 years and sacrifice 1 month of 'Save' bonus
guess that will be my current strategy to minimise loss of 'Save' bonus, pending any other comparable low-risk savings account from other financial institutions
theoritically, your method is confirm not the optimum strategy. the optimum one should be reset at 100-X point, then continue increase for Y Months, until the money reached amount of Z (100-x +500Y), then reset again.
addict951
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This is my strategy too.
My current total balance ish still above 4% if every month collect all 3 types of bonuses.
actually 6-7 yrs ago we alrdy discussed this b4 riao iirc.
70niner
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I was also thinking of resetting at 95k or 98k too, but there is a nagging feeling about not utilizing the full 4.65% at the onset.
May be it is a blindsports. Need to check your spec.This is my strategy too.
My current total balance ish still above 4% if every month collect all 3 types of bonuses.
actually 6-7 yrs ago we alrdy discussed this b4 riao iirc.
Just a very simple comparism. suppose outside money can earn 3% interest.
If I reset at $99500 and follow your same strategy, compared with your earning in the entire duration, I only lose you the amount at the first Month, which is 500*(7.00%-3.00%)/12.
,but I can earn another 500*3.00%*months to reset/12.
addict951
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You dun have to show me how you justify your strategy.
What I focus on is the compounding effect combined wif the ‘returns’ of other investments.
The faster I get returns (tbill for one which is ‘instant’) the more & bigger I build my next pool of cash to get ready for the next tbill cycle (which occurs biweekly). I even took up balance trsf just to build up this biweekly pool so I can get even bigger ‘returns’.
So just imagine all these with returns coming in almost instantaneously or quickly + the compounding effect I have very little consideration for ‘reset’ or those other WOLS investment strategies (like fd), etc
Worked thru an example assuming Salary+Spend+Save of 4.6% interest:
If I start at $100k and increase $500 each month, total interest for the year = 4.6% * $100k = $4600.
If I start at $100k and increase $500 each month for 11 months, reset to $100k in the 12th month and move the balance $5.5k (11 * $500 increments) to another account earning 3% for 1 month, total interest for the year ~= 4.6% * $100k * (11/12) + 3.1% * $100k * (1/12) + 3% * $5.5k * (1/12) = $4488.
So it isn't worth resetting yet.
The "breakeven" balance should be around $100k * 1.5% / x%, where x% is the interest you can get elsewhere. E.g. in the above example with x% = 3%, I will reset when my balance hits $150k, then the total interest for the year ~= 4.6% * $100k * (11/12) + 3.1% * $100k * (1/12) + 3% * $50k * (1/12) = $4600.
Edit: For simplicity, I removed the 0.05% base interest. Fixed typo in calculation.
If I start at $100k and increase $500 each month, total interest for the year = 4.6% * $100k = $4600.
If I start at $100k and increase $500 each month for 11 months, reset to $100k in the 12th month and move the balance $5.5k (11 * $500 increments) to another account earning 3% for 1 month, total interest for the year ~= 4.6% * $100k * (11/12) + 3.1% * $100k * (1/12) + 3% * $5.5k * (1/12) = $4488.
So it isn't worth resetting yet.
The "breakeven" balance should be around $100k * 1.5% / x%, where x% is the interest you can get elsewhere. E.g. in the above example with x% = 3%, I will reset when my balance hits $150k, then the total interest for the year ~= 4.6% * $100k * (11/12) + 3.1% * $100k * (1/12) + 3% * $50k * (1/12) = $4600.
Edit: For simplicity, I removed the 0.05% base interest. Fixed typo in calculation.
Last edited:
addict951
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The Plus savings account $0 fall-below grace period was 2 years hor. I overheard ppl asking at the bank when I went to press money.
Rast time when there was an OCBC cso operating here, he/she used to share this OCBC 360 account won’t attract fall-below fee even if you maintain $0 balance. It’s either you maintain minimum $3K or $0 in this account. Not amounts in between.
And I found that to be true cos I consistently maintained $0 in this account then.
This was b4 covid info hor.
Not like that, you must understand that the 20k earn practically nothing. If 20k can earn like 3% elsewhere you are losing $600 per year, you definitely need to reset yearly at least.
70niner
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I know, but I'm also avoiding the loss of the 'Save' bonus interest which can amount to 1500 per year or 125 for the month of reset, for as long as possible.
Your assumption is not correct, that 5.5k does not earn interest for 1 month, it's earning interest forever. If you reset it yearly then you should calculate annual interest. If once every 2 years then it's 2 years annual interest lost.
To bust the upfront interest payment myth of T-bill.You dun have to show me how you justify your strategy.
What I focus on is the compounding effect combined wif the ‘returns’ of other investments.
The faster I get returns (tbill for one which is ‘instant’) the more & bigger I build my next pool of cash to get ready for the next tbill cycle (which occurs biweekly). I even took up balance trsf just to build up this biweekly pool so I can get even bigger ‘returns’.
So just imagine all these with returns coming in almost instantaneously or quickly + the compounding effect I have very little consideration for ‘reset’ or those other WOLS investment strategies (like fd), etc
The instant return payment of 6 Months T-bill even cannot compensate the interest loss due to the gaps between auction date and issue date. Maturity date and the money return to your bank account date.
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With fuss free high yield savings account, the opportunity cost should be no more than 0.5%. Maribank pays 2.5%.
You mean that if I had the 5.5k used for topping up earning interest in the other bank? So the calculation should be like this?
No reset:
Month | OCBC | Bank B | OCBC Interest | Bank B Interest | Total Interest |
1 | 100500 | 5500 | 383.33 | 13.75 | 397.08 |
2 | 101000 | 5000 | 383.33 | 12.5 | 395.83 |
3 | 101500 | 4500 | 383.33 | 11.25 | 394.58 |
4 | 102000 | 4000 | 383.33 | 10 | 393.33 |
5 | 102500 | 3500 | 383.33 | 8.75 | 392.08 |
6 | 103000 | 3000 | 383.33 | 7.5 | 390.83 |
7 | 103500 | 2500 | 383.33 | 6.25 | 389.58 |
8 | 104000 | 2000 | 383.33 | 5 | 388.33 |
9 | 104500 | 1500 | 383.33 | 3.75 | 387.08 |
10 | 105000 | 1000 | 383.33 | 2.5 | 385.83 |
11 | 105500 | 500 | 383.33 | 1.25 | 384.58 |
12 | 106000 | 0 | 383.33 | 0 | 383.33 |
| Total | 4600.00 | 82.50 | 4682.50 |
Reset once a year:
Month | OCBC | Bank B | OCBC Interest | Bank B Interest | Total Interest |
1 | 100500 | 5500 | 383.33 | 13.75 | 397.08 |
2 | 101000 | 5000 | 383.33 | 12.5 | 395.83 |
3 | 101500 | 4500 | 383.33 | 11.25 | 394.58 |
4 | 102000 | 4000 | 383.33 | 10 | 393.33 |
5 | 102500 | 3500 | 383.33 | 8.75 | 392.08 |
6 | 103000 | 3000 | 383.33 | 7.5 | 390.83 |
7 | 103500 | 2500 | 383.33 | 6.25 | 389.58 |
8 | 104000 | 2000 | 383.33 | 5 | 388.33 |
9 | 104500 | 1500 | 383.33 | 3.75 | 387.08 |
10 | 105000 | 1000 | 383.33 | 2.5 | 385.83 |
11 | 105500 | 500 | 383.33 | 1.25 | 384.58 |
12 | 100000 | 6000 | 258.33 | 15 | 273.33 |
| Total | 4475.00 | 97.50 | 4572.50 |
Reset when I hit $150k:
Month | OCBC | Bank B | OCBC Interest | Bank B Interest | Total Interest |
1 | 145000 | 5500 | 383.33 | 13.75 | 397.08 |
2 | 145500 | 5000 | 383.33 | 12.5 | 395.83 |
3 | 146000 | 4500 | 383.33 | 11.25 | 394.58 |
4 | 146500 | 4000 | 383.33 | 10 | 393.33 |
5 | 147000 | 3500 | 383.33 | 8.75 | 392.08 |
6 | 147500 | 3000 | 383.33 | 7.5 | 390.83 |
7 | 148000 | 2500 | 383.33 | 6.25 | 389.58 |
8 | 148500 | 2000 | 383.33 | 5 | 388.33 |
9 | 149000 | 1500 | 383.33 | 3.75 | 387.08 |
10 | 149500 | 1000 | 383.33 | 2.5 | 385.83 |
11 | 150000 | 500 | 383.33 | 1.25 | 384.58 |
12 | 100000 | 50500 | 258.33 | 126.25 | 384.58 |
| Total | 4475.00 | 208.75 | 4683.75 |
Your Calculation may not be correct. Suppose You have $150K, OCBC earn 4.6% or 3.1% for the Month based on reset or not on that Month, and Bank B earn 3.0% interest, earned Interest not re-invested in for easy calculation, the earning Interest as below.
Plan A: Reset Yearly:
| Month | OCBC | Bank B | OCBC Interest | Bank B Interest | Total int |
1 | $ 100,000.00 | $ 50,000.00 | $ 383.33 | $ 125.00 | $ 508.33 |
2 | $ 100,500.00 | $ 49,500.00 | $ 383.33 | $ 123.75 | $ 507.08 |
3 | $ 101,000.00 | $ 49,000.00 | $ 383.33 | $ 122.50 | $ 505.83 |
4 | $ 101,500.00 | $ 48,500.00 | $ 383.33 | $ 121.25 | $ 504.58 |
5 | $ 102,000.00 | $ 48,000.00 | $ 383.33 | $ 120.00 | $ 503.33 |
6 | $ 102,500.00 | $ 47,500.00 | $ 383.33 | $ 118.75 | $ 502.08 |
7 | $ 103,000.00 | $ 47,000.00 | $ 383.33 | $ 117.50 | $ 500.83 |
8 | $ 103,500.00 | $ 46,500.00 | $ 383.33 | $ 116.25 | $ 499.58 |
9 | $ 104,000.00 | $ 46,000.00 | $ 383.33 | $ 115.00 | $ 498.33 |
10 | $ 104,500.00 | $ 45,500.00 | $ 383.33 | $ 113.75 | $ 497.08 |
11 | $ 105,000.00 | $ 45,000.00 | $ 383.33 | $ 112.50 | $ 495.83 |
12 | $ 105,500.00 | $ 44,500.00 | $ 383.33 | $ 111.25 | $ 494.58 |
13 | $ 100,000.00 | $ 50,000.00 | $ 258.33 | $ 125.00 | $ 383.33 |
14 | $ 100,500.00 | $ 49,500.00 | $ 383.33 | $ 123.75 | $ 507.08 |
92 | $ 103,500.00 | $ 46,500.00 | $ 383.33 | $ 116.25 | $ 499.58 |
93 | $ 104,000.00 | $ 46,000.00 | $ 383.33 | $ 115.00 | $ 498.33 |
94 | $ 104,500.00 | $ 45,500.00 | $ 383.33 | $ 113.75 | $ 497.08 |
95 | $ 105,000.00 | $ 45,000.00 | $ 383.33 | $ 112.50 | $ 495.83 |
96 | $ 105,500.00 | $ 44,500.00 | $ 383.33 | $ 111.25 | $ 494.58 |
97 | $ 100,000.00 | $ 50,000.00 | $ 258.33 | $ 125.00 | $ 383.33 |
98 | $ 100,500.00 | $ 49,500.00 | $ 383.33 | $ 123.75 | $ 507.08 |
99 | $ 101,000.00 | $ 49,000.00 | $ 383.33 | $ 122.50 | $ 505.83 |
100 | $ 101,500.00 | $ 48,500.00 | $ 383.33 | $ 121.25 | $ 504.58 |
101 | $ 102,000.00 | $ 48,000.00 | $ 383.33 | $ 120.00 | $ 503.33 |
102 | $ 102,500.00 | $ 47,500.00 | $ 383.33 | $ 118.75 | $ 502.08 |
| Total Earner Int | $ 50,171.25 |
| Month | OCBC | Bank B | OCBC Interest | Bank B Interest | Total int |
1 | $ 100,000.00 | $ 50,000.00 | $ 383.33 | $ 125.00 | $ 508.33 |
2 | $ 100,500.00 | $ 49,500.00 | $ 383.33 | $ 123.75 | $ 507.08 |
3 | $ 101,000.00 | $ 49,000.00 | $ 383.33 | $ 122.50 | $ 505.83 |
4 | $ 101,500.00 | $ 48,500.00 | $ 383.33 | $ 121.25 | $ 504.58 |
5 | $ 102,000.00 | $ 48,000.00 | $ 383.33 | $ 120.00 | $ 503.33 |
6 | $ 102,500.00 | $ 47,500.00 | $ 383.33 | $ 118.75 | $ 502.08 |
7 | $ 103,000.00 | $ 47,000.00 | $ 383.33 | $ 117.50 | $ 500.83 |
8 | $ 103,500.00 | $ 46,500.00 | $ 383.33 | $ 116.25 | $ 499.58 |
9 | $ 104,000.00 | $ 46,000.00 | $ 383.33 | $ 115.00 | $ 498.33 |
10 | $ 104,500.00 | $ 45,500.00 | $ 383.33 | $ 113.75 | $ 497.08 |
11 | $ 105,000.00 | $ 45,000.00 | $ 383.33 | $ 112.50 | $ 495.83 |
12 | $ 105,500.00 | $ 44,500.00 | $ 383.33 | $ 111.25 | $ 494.58 |
13 | $ 106,000.00 | $ 44,000.00 | $ 383.33 | $ 110.00 | $ 493.33 |
14 | $ 106,500.00 | $ 43,500.00 | $ 383.33 | $ 108.75 | $ 492.08 |
92 | $ 145,500.00 | $ 4,500.00 | $ 383.33 | $ 11.25 | $ 394.58 |
93 | $ 146,000.00 | $ 4,000.00 | $ 383.33 | $ 10.00 | $ 393.33 |
94 | $ 146,500.00 | $ 3,500.00 | $ 383.33 | $ 8.75 | $ 392.08 |
95 | $ 147,000.00 | $ 3,000.00 | $ 383.33 | $ 7.50 | $ 390.83 |
96 | $ 147,500.00 | $ 2,500.00 | $ 383.33 | $ 6.25 | $ 389.58 |
97 | $ 148,000.00 | $ 2,000.00 | $ 383.33 | $ 5.00 | $ 388.33 |
98 | $ 148,500.00 | $ 1,500.00 | $ 383.33 | $ 3.75 | $ 387.08 |
99 | $ 149,000.00 | $ 1,000.00 | $ 383.33 | $ 2.50 | $ 385.83 |
100 | $ 149,500.00 | $ 500.00 | $ 383.33 | $ 1.25 | $ 384.58 |
101 | $ 150,000.00 | $ - | $ 383.33 | $ - | $ 383.33 |
102 | $ 100,000.00 | $ 50,000.00 | $ 258.33 | $ 125.00 | $ 383.33 |
| Total Earner Int | $ 45,412.50 |
Your example 1 & 2 only until 12th month when you do the reset, do the maths until 24 months to see the impact that the reset will have on subsequent months. It's actual a simple logic, if you reset once a year, you take out 5.5k which can earn a interest of $180 if rate is 3%. The cost of doing so is around $125 of bonus interest lost so it's definitely worth doing this reset. If you withdraw once every 11 months then 5.5k will earn around $151 interest in 11 month so it's still worth doing. If withdraw every 10 months then 5k will earn $125 in 10 months so this is roughly same as bonus interest lost. So how often to do it depend on what kind of returns you can get elsewhere, if you can get 3% at other place then you should do it once the amount get to 105k.
botak33
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Hi guys, need advise on my calculation in additional amount to top up for the ADB vs last month. Thanks.
Interest credit: $3.82 on 1 Feb 2025
I had top up $496.18 ($500-3.82, assuming $3.82 int is counted) on 1 Feb 2025.
Just checked my account
My ledger bal: $90500, Current month ADB: $90500, ADB: $466.94
My calculation
Shortfall: $500 - $466.94 = $33.06
Top up for 2 days shortfall: $33.06 x 2 = $66.12
On the 3 Feb 2025 ADB should be: $500
I can withdraw out: $33.06
Interest credit: $3.82 on 1 Feb 2025
I had top up $496.18 ($500-3.82, assuming $3.82 int is counted) on 1 Feb 2025.
Just checked my account
My ledger bal: $90500, Current month ADB: $90500, ADB: $466.94
My calculation
Shortfall: $500 - $466.94 = $33.06
Top up for 2 days shortfall: $33.06 x 2 = $66.12
On the 3 Feb 2025 ADB should be: $500
I can withdraw out: $33.06
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