Property Fix rate or floating rate?

[andyhtc]

I am on DBS FHR6 housing loan, currently paying 1.55% pa (even after 0.5% rate hike), so I don't see any point to take up fixed rate loan at >2% pa. I doubt rate can go up much higher than another 1% pa.

>1% for FHR6 is quite possible because there are not many savers in these fixed deposits from S$1,000 to S$9,999 and the quantum is very low.

DBS can make small losses on its FHR6 deposits but gain a lot more from the huge loans that are pegged to FHR6.

The latest is that UOB and DBS have raised their online savings deposit rates by a big leap. Other deposit rates should follow soon.

 

[iceblendedchoc]

>1% for FHR6 is quite possible because there are not many savers in these fixed deposits from S$1,000 to S$9,999 and the quantum is very low.

DBS can make small losses on its FHR6 deposits but gain a lot more from the huge loans that are pegged to FHR6.

The latest is that UOB and DBS have raised their online savings deposit rates by a big leap. Other deposit rates should follow soon.

https://www.straitstimes.com/busine...nterest-rates-on-its-flagship-savings-account
you meant this?

As long as it is not an increase on board saving rate, it has no effect.

 

[BBCWatcher]

>1% for FHR6 is quite possible because there are not many savers in these fixed deposits from S$1,000 to S$9,999 and the quantum is very low.

DBS can make small losses on its FHR6 deposits but gain a lot more from the huge loans that are pegged to FHR6.

The latest is that UOB and DBS have raised their online savings deposit rates by a big leap. Other deposit rates should follow soon.

Another little trick available is to close 6 month $1,000 to $9,999 fixed deposits (FHR6) to new depositors and only allow them for rollovers (existing fixed deposits of the same size/tenor).

 

[andyhtc]

https://www.straitstimes.com/busine...nterest-rates-on-its-flagship-savings-account
you meant this?

As long as it is not an increase on board saving rate, it has no effect.

Not directly. They indicate that the local banks liquidity are falling fast.

 

[reddevil0728]

Not directly. They indicate that the local banks liquidity are falling fast.

Which part did they say that?

 

[andyhtc]

Which part did they say that?

The banks need the money. Hence, we are seeing a broader trend of higher deposit rates.

 

[reddevil0728]

The banks need the money. Hence, we are seeing a broader trend of higher deposit rates.

You said they indicated. Which part in the article?

 

[andyhtc]

You said they indicated. Which part in the article?

Indicated as in from SIBOR and SORA as leading indicators and savings rates as lagging indicators.

 

[reddevil0728]

Indicated as in from SIBOR and SORA as leading indicators and savings rates as lagging indicators.

Then what you said misleading siahz

Not directly. They indicate that the local banks liquidity are falling fast.

you quote a post with a link to an article. Thought they actually said that.