Savings advice

[dreant]

CIMB automatically converts lump sum deposits, so you initial 10k is good for the higher interest rate for 20 months.

$80 is the interest of 0.8% for the 10k you deposit (it'll actually be a little more because it's daily interest monthly compounded)

 

[cheeyen]

CIMB automatically converts lump sum deposits, so you initial 10k is good for the higher interest rate for 20 months.

$80 is the interest of 0.8% for the 10k you deposit (it'll actually be a little more because it's daily compounded)

Understand.. comparing their current and savings, is their savings account better? Since they just require monthly 100 instead of 500 to top up to enjoy the 0.8%.

 

[dreant]

Understand.. comparing their current and savings, is their savings account better? Since they just require monthly 100 instead of 500 to top up to enjoy the 0.8%.

The main difference is the cheque book. If you feel you might need to withdrawn (large amounts of) funds at short notice without visiting CIMB bank in person, you would like to have a cheque book. Internet banking has a daily transfer limit of 25k, which may not be sufficient for some people.

If you don't, the Savings account should be just fine, and your 10k would be good for 100 months of the higher interest rate.

 

[cheeyen]

The main difference is the cheque book. If you feel you might need to withdrawn (large amounts of) funds at short notice without visiting CIMB bank in person, you would like to have a cheque book. Internet banking has a daily transfer limit of 25k, which may not be sufficient for some people.

If you don't, the Savings account should be just fine, and your 10k would be good for 100 months of the higher interest rate.

Noted, thanks for your helpful advice!!

 

[GE_ric]

I agree that for plain vanilla savings accounts, CIMB starsaver has got the best one going on. Just a tiny bit of troublesome when needing to withdraw, but nothing too major.

 

[elisee1]

Hi guys, im quite new to all this finance things, wanna ask something regarding interest rates.

I want to put aside $2200 for savings.

Let's say CIMB savings account gives me interest of 0.8% p.a, with a requirement of month-end incremental deposit of $100. My initial principal is $1000, and I choose to do a month-end deposit of $100 every month.

So, at the end of the year, I will have my principal, plus the 12 months of $100 monthly deposit in the account (which total $2200). At the end of the year, they will apply the 0.8% to this $2200, and add it to my account. Is this how it works?

 

[lushiris]

Hi guys, im quite new to all this finance things, wanna ask something regarding interest rates.

I want to put aside $2200 for savings.

Let's say CIMB savings account gives me interest of 0.8% p.a, with a requirement of month-end incremental deposit of $100. My initial principal is $1000, and I choose to do a month-end deposit of $100 every month.

So, at the end of the year, I will have my principal, plus the 12 months of $100 monthly deposit in the account (which total $2200). At the end of the year, they will apply the 0.8% to this $2200, and add it to my account. Is this how it works?

interest is earned mthly based on the balance in the acct (also mabbe taking into consideration how many days per mth it sits in the acct)

 

[dreant]

Let's say CIMB savings account gives me interest of 0.8% p.a, with a requirement of month-end incremental deposit of $100. My initial principal is $1000, and I choose to do a month-end deposit of $100 every month.

So, at the end of the year, I will have my principal, plus the 12 months of $100 monthly deposit in the account (which total $2200). At the end of the year, they will apply the 0.8% to this $2200, and add it to my account. Is this how it works?

For CIMB Starsaver, interest is accrued daily and compounded monthly.

Effectively, each day the amount of interest you get is approximately (balance for that day / 100 * 0.8 / 365 days); but it is only only added to your balance at the end of the month (so it isn't daily compounding).

Eg.
1 Apr: $1000 (Open account)
16 Apr: $1100 (you deposit $100)
30 Apr: $1100

1 May: $1100.71 (you earned 71c interest; ~33c from 1-15 + ~38c from 16-30).

You can just put $2200 into the account when you open it, and you won't have to make any $100 deposits for the next 12 months.

To enjoy 0.8% p.a. on the entire account balance, simply top up the month-end balance of your CIMB StarSaver Account by:
# maintaining an increasing balance with monthly deposits of a minimum amount; OR.
# placing periodic lump sum deposits that will be automatically converted by CIMB Bank into equal portions for your account.