ocbc 360 account

[naro]

Not for me too. As long as they require GIRO for salary to get the bonus interest rate, I won't qualify.

Wah!!! damn sian for you.

Think Bonussaver suits u then.

 

[Perisher]

Not for me too. As long as they require GIRO for salary to get the bonus interest rate, I won't qualify.

Sama sama.

 

[edwinttt1978]

lol just spent so much effort switching over to ocbc 1 month ago and now got snooked by a moving goal post...

Think of it as 1:61.
One month at 3.05% pa earns the interest that would have taken 61 months to earn.

You might have earned the monthly interest that others take 5 years to earn.

 

[arctician]

SC Bonus$aver for the 1.88% not as good as it seems..

on paper u will recv ard $40 for 25k once ur spending hit $500 on e card..but remember u r not getting any cash rebates from ur CC spend

so if you assume a 3% cashback for ur $500 spend on the CC, your net rebate is actually only $25 on ur $25k which amt to 1%..if u compare with scb esavers of 1.4% or uob hy/ocbc 360..u r losing interest

and my 3% is already v conservative..u can get 6% for telco bill payment online via frank, uob one 3.33%, ntuc and shengsiong got 5% from posb everday and maybank Fnf

thats why i have nvr open e bonus saver acct.there are opportunities costs masked within e promo

 

[Yo2020]

SC Bonus$aver for the 1.88% not as good as it seems..

on paper u will recv ard $40 for 25k once ur spending hit $500 on e card..but remember u r not getting any cash rebates from ur CC spend

so if you assume a 3% cashback for ur $500 spend on the CC, your net rebate is actually only $25 on ur $25k which amt to 1%..if u compare with scb esavers of 1.4% or uob hy/ocbc 360..u r losing interest

thats why i have nvr open e bonus saver acct.there are opportunities costs masked within e promo

SC is trying to sell it by recommending to spend/link the $500 to Pru's endowment plan. any good?

 

[arctician]

SC is trying to sell it by recommending to spend/link the $500 to Pru's endowment plan. any good?

not good..endowment is a long term commitment and e insurance companies use it to invest in bonds and take the spread consequently giving you a lower yield

you might as well use dollar cost averaging strategy and buy the capmall 3.8 bond on sgx urself..guarantee u will get higher yield

why let e banks..insurance companies..n middleman earn

 

[zoossh]

SC Bonus$aver for the 1.88% not as good as it seems..

on paper u will recv ard $40 for 25k once ur spending hit $500 on e card..but remember u r not getting any cash rebates from ur CC spend

so if you assume a 3% cashback for ur $500 spend on the CC, your net rebate is actually only $25 on ur $25k which amt to 1%..if u compare with scb esavers of 1.4% or uob hy/ocbc 360..u r losing interest

thats why i have nvr open e bonus saver acct.there are opportunities costs masked within e promo

to help others get an idea,

i use this to calculate the returns from bonus saver. but this presume that u had deposit in full 25k throughout the month of 30 days and wanted to spend on things costing at least 500.

(1.88-your best rate)
x (30/365) for no of days in the month
25000 for the deposit
/500 for the spending

best rate is at least 1.25 for scb esaver or whatever rates that u get during that specific month. that gives a returns of 2.6% rebate on 500 spent. this is better than amex tcb at 1.5% rebate, but require mandatory $500 spending. this is good for offline non-grocery spending.

if one got more money at uob hya at best rate of 1.63 (previous rates), than that will give 1% rebate on 500 spent.

 

[arctician]

to help others get an idea,

i use this to calculate the returns from bonus saver. but this presume that u had deposit in full 25k throughout the month of 30 days and wanted to spend on things costing at least 500.

(1.88-your best rate)
x (30/365) for no of days in the month
25000 for the deposit
/500 for the spending

best rate is at least 1.25 for scb esaver or whatever rates that u get during that specific month. that gives a returns of 2.6% rebate on 500 spent. this is better than amex tcb at 1.5% rebate, but require mandatory $500 spending. this is good for offline non-grocery spending.

if one got more money at uob hya at best rate of 1.63 (previous rates), than that will give 1% rebate on 500 spent.

i know wat u meant..but wan to emphasize e 1.88% is not really 1.88%

ur 25k can be placed in ocbc 360, esavers, uob hy that give >1.4%, and ur $500 spend can be channeled into CC which give e best 5% rates..telcos frank..groceries..posb everyday..etc

for me i always go for e best..squeeze n squeeze.

 

[zoossh]

i know wat u meant..but wan to emphasize e 1.88% is not really 1.88%

ur 25k can be placed in ocbc 360, esavers, uob hy that give >1.4%, and ur $500 spend can be channeled into CC which give e best 5% rates..telcos frank..groceries..posb everyday..etc

for me i always go for e best..squeeze n squeeze.

basically it has two variable, deposit and rebate, that had to be compared with the others. and it is not easy for some to see.

 

[arctician]

basically it has two variable, deposit and rebate, that had to be compared with the others. and it is not easy for some to see.

yea for me i just think of it e layman way

1.5% PA interest for deposits of 25k = $31.25 per month

6% monthly on $500 spend = $30

so every month i should get $60+/-

but from SCB bonussaver i only got $39 based on 1.88% on 25k..so every month i lose $20

to me thats significant

 

[zoossh]

1.5% PA interest for deposits of 25k = $31.25 per month

6% monthly on $500 spend = $30

not everyone can get 1.5% for deposit and spend everything online. so it still have its values, though in a complicated way.

 

[dork32]

not good..endowment is a long term commitment and e insurance companies use it to invest in bonds and take the spread consequently giving you a lower yield

you might as well use dollar cost averaging strategy and buy the capmall 3.8 bond on sgx urself..guarantee u will get higher yield

why let e banks..insurance companies..n middleman earn

capmall asia 3.8% current yield is 2.41%. very low

 

[spiritGate]

no prob, bro. done it few month already. can get 3%. just caught off guard abt 2% now. so thinking whether can jump where?

ok la, 2% is still better than other banks. For me I will stay put until a better offer comes.

 

[arctician]

capmall asia 3.8% current yield is 2.41%. very low

not sure how u calculate it..based on coupon of 3.8% and maturity in 2022 (ard 7 years), current yield is 3.68% and yield to maturity is 3.27%

there is genting pref shares..hyflux 6, occ 5.1%..all yield above 4%

 

[dork32]

not sure how u calculate it..based on coupon of 3.8% and maturity in 2022 (ard 7 years), current yield is 3.68% and yield to maturity is 3.27%

there is genting pref shares..hyflux 6, occ 5.1%..all yield above 4%

my maths is usually correct.

Correct the maturity of the bond is 2022.

but it is redeemable at 2017. if they dont redeem, then the interest will be raised to 4.5%. But there is a high chance that they redeem it because it is likely that they can refinance it at a lower rate.

if they redeem it, you have just 4 interest payout left of $19 = $76. but you will lose 33 (current price of 1.033 vs redeem price of 1.000). so only about 2.4% left if you buy today.

this is the same for all the preference shares that you have quoted. all their price now are higher than their redeem price.

 

[dork32]

not sure how u calculate it..based on coupon of 3.8% and maturity in 2022 (ard 7 years), current yield is 3.68% and yield to maturity is 3.27%

there is genting pref shares..hyflux 6, occ 5.1%..all yield above 4%

you probably get the 3.68% when you divide 3.8 by 1.033. this is only correct if the share price will recover to 1.033 6 months later. this is not likely to happen especially for a bond that is very near to its redeemable date.

also in a rising interest rate environment, it is not good to buy bonds.

 

[arctician]

you probably get the 3.68% when you divide 3.8 by 1.033. this is only correct if the share price will recover to 1.033 6 months later. this is not likely to happen especially for a bond that is very near to its redeemable date.

also in a rising interest rate environment, it is not good to buy bonds.

correct thats why i have current yield and yield to maturity..the YTM is calculated using the RATE function in excel which factor in e PAR value of 1 when its recalled..and current yield is coupon divided by current share price..in both cases i assumed 3.8% coupon pay out all the way till 2022..if like what u said there is early recall in 2017 then yes..the yield is ~2.1%

just wan to highlight there are much better options vis a vis endowment..and though i agree its unwise to buy bond in a rising interest rate environment, latter gets my nod over endowment anyday

how to use RATE

http://www.investopedia.com/ask/answers/012015/how-do-i-calculate-yield-maturity-excel.asp

 

[Yo2020]

can u guys speak english?? i m totally lost... @-@

 

[Carnesir]

i will still stick to 360 for their interest can be earned the easiest and highest for my spending pattern and habits.

dbs the cash too atas liao and scb sucks.

 

[arctician]

can u guys speak english?? i m totally lost... @-@

no la i layman too..but if u want to invest in bonds and preference shares..there are 2 metrics that one muz definitely know..one is current yield..other is yield to maturity..otherwise how to do a relative comparison

just like stocks..u do relative valuation by comparing their price to earnings, net asset value, dividend yield..for bonds is similar..u compare current yield and yield to maturity