OCBC FD for CPF?

[dork32]

Additional information:
- No lock in period
- Interest rate is 1.25% (1st yr), 1.35% (2nd yr), 1.6% (3rd yr) and 1.65% (4th onwards)
- can make repayment anytime as long as min. sum is 10k

this is exactly what i mean. after 3 years, your interest is much higher than the 1st year. it is smart if you refinance after the third year.

it is quite easy to calculate. your cost is 250. you can calculate with interest after 3 years what this 250 would be.

then to calculate the benefits. the 300 you keep in your cpf each month is earning an interest of 1.25% for the first year, 1.15% for the second year and 0.9% for the third year. your benefit is only 170 not even enuf for your 250 without interest

base on my calculation. it is not worth to do the conversion now. Wait for 3 years later then refinance again. then you can start to extend the period of payment and get a lower interest rate.

 

[dork32]

for financial advise, it is good that you seek it from people that will not benefit or lose from the decisions you make.

eg if i am a bank officer, i will make commission if you change your loan period. i will definitely ask you to do it, regardless whether it is beneficial to you or not.

also, it is always good to get advice for someone with true credentials, not just from someone that claims that he can calculate anything in the universe at a hwz forum.

 

[djchris]

Ok. Thanks.

 

[kazejin]

Hi all, I spoke to my banker and I can change the terms of my loan from 16 years to 23 years, moving my monthly repayment of 1.1k+ to 800+. This change will cost a fee of $250. Just want to get a consensus here whether I should do it. I think I know the answer, but want to see what you guys would say.

It depends greatly on what you do with the extra ~300 a month.
The "Net Present Value" of both is probably the same.
Will need exact amounts and interest rate to calculate that.

 

[dork32]

It depends greatly on what you do with the extra ~300 a month.
The "Net Present Value" of both is probably the same.
Will need exact amounts and interest rate to calculate that.

the no brainer, sure win thing to do with the 300 is to leave it in cpf oa.

 

[ipaq4444]

If you don't sell your property, its never a factor but if you do then you need to pay back. Pretty straight forward.

CPF loan is not fixed at 2.6%, its 0.1% above OA interest rate which in turn is pegged to 10yrs SGS rate. Current floating interest rate is close to 5yr SGS rate so taking a CPF loan ensure that you are AlWAYS paying a above market rate for housing loans since 10yr SGS yield will never be lower than 5yr SGS yield. The gov has already change the rules of the game but people are still happily taking CPF loans thinking its a better deal when rates go up.

Gov have been giving the extra 1% but the hdb loan still stay the same. a check on the sgs rates show that from 2006 - 2007 - rate is above 2.6.
can take as indication that the game still stay the same?

 

[OCBC Bank]

Thanks for all comments... Appreciate all effort in reply.

However my question is still unanswer - Does OCBC offer FD account for CPF deposit?

Hi there!

This is just a confirmation that OCBC Bank no longer offers fixed deposit placements using CPF funds

^Shereen