Ocbc ut with cpfis

[1a2a3a]

Hi guys

Was wondering if it’s worth it to use 20k in cpf to invest in UT?

The fees and charges are $2.5 per 1000 subject to a max of $25. And a quarterly service fee of $2.

20k investment will be $25 right? Followed by $2/quarter = $8/year.
Total is $33/year.

With Ocbc 360, you get additional 0.9%([0.6+1.2]/2)

Question is will ut generally earn higher than current OA at 2.5%? And will the 0.9% be higher so to offset the $33/year?

Your insight is much valuable!

 

[BBCWatcher]

Was wondering if it’s worth it to use 20k in cpf to invest in UT?

Which unit trust, and how long do you expect to stay invested in it?

 

[1a2a3a]

Don’t really have a specific. Generally looking at these few, Legg Mason/black rocks/Eastspring/Nikko am.

Will they provide a recommend list of funds if we don’t want to choose ourselves?
Since the interest period will last for 12 months, I’m thinking of buying for 12 months, then at 12th month, sell and rebuy.

Perhaps this will not cover the cost to tide over investment period, but as Long as it makes 2.5%(cpf rates) and covers fees and charges, then the extra 0.9% would be considered a win?

Which unit trust, and how long do you expect to stay invested in it?

 

[BBCWatcher]

Don’t really have a specific. Generally looking at these few, Legg Mason/black rocks/Eastspring/Nikko am.

OK, but you need to be specific, otherwise it’s going to be impossible to provide reasonable advice. (It could be more than one unit trust by the way — that’s possible.) Unit trusts are mostly poor values (high cost), but there are a very few that are decent.

Lion Global has a couple decent ones upon recent investigation, and assuming you buy them via a zero fee platform that supports the CPF Investment Scheme. (Which could be a problem for the OCBC360 part of your plan, but you didn’t think that kickback would be free, did you? )

....And why a unit trust specifically? Would you consider an exchange-traded fund (ETF)?

 

[maple96]

Hi guys

Was wondering if it’s worth it to use 20k in cpf to invest in UT?

The fees and charges are $2.5 per 1000 subject to a max of $25. And a quarterly service fee of $2.

20k investment will be $25 right? Followed by $2/quarter = $8/year.
Total is $33/year.

With Ocbc 360, you get additional 0.9%([0.6+1.2]/2)

Question is will ut generally earn higher than current OA at 2.5%? And will the 0.9% be higher so to offset the $33/year?

Your insight is much valuable!

Why do u want to do that just to earn an additional 0.9% on OCBC360 just for 1 year?

U can easily earn an extra 1.45% just by transferring your account balance:

Read this:

"Here is a better method, u can earn $1925 interest per year

Boost Your OCBC360 Interest Rate to 3.55%pa from April 2019!"

 

[1a2a3a]

OK, but you need to be specific, otherwise it’s going to be impossible to provide reasonable advice. (It could be more than one unit trust by the way — that’s possible.) Unit trusts are mostly poor values (high cost), but there are a very few that are decent.

Lion Global has a couple decent ones upon recent investigation, and assuming you buy them via a zero fee platform that supports the CPF Investment Scheme. (Which could be a problem for the OCBC360 part of your plan, but you didn’t think that kickback would be free, did you? )

....And why a unit trust specifically? Would you consider an exchange-traded fund (ETF)?

I think the 360 account etf is not considered an eligible product.

 

[1a2a3a]

Why do u want to do that just to earn an additional 0.9% on OCBC360 just for 1 year?

U can easily earn an extra 1.45% just by transferring your account balance:

Read this:

"Here is a better method, u can earn $1925 interest per year

Boost Your OCBC360 Interest Rate to 3.55%pa from April 2019!"

3.55 from ocbc and 2.43 from uob and yes that is the plan. I’m just thinking if it’s possible to do 4.45 from ocbc and 2.43 from uob making the average to be 3.44 instead of 2.99

 

[maple96]

3.55 from ocbc and 2.43 from uob and yes that is the plan. I’m just thinking if it’s possible to do 4.45 from ocbc and 2.43 from uob making the average to be 3.44 instead of 2.99

i dun think is worth taking the effort and risk, especially the market is at a critical turning point.

I am waiting for good news from dbs multiplier next mth

 

[1a2a3a]

Multiplier will be changing next month?

i dun think is worth taking the effort and risk, especially the market is at a critical turning point.

I am waiting for good news from dbs multiplier next mth

 

[maple96]

Multiplier will be changing next month?

Yes likely increase up to 75k, not sure rate table tier changes as well

 

[Bull Runnings]

Why do u want to do that just to earn an additional 0.9% on OCBC360 just for 1 year?

U can easily earn an extra 1.45% just by transferring your account balance:

Read this:

"Here is a better method, u can earn $1925 interest per year

Boost Your OCBC360 Interest Rate to 3.55%pa from April 2019!"

Does this actually work? Very curious now