SSB vs Citibank Maxigain?

[iwanthp]

Hi guys was thinking between the 2 above. For now im comparing the Oct18 SSB and the Maxigain interest with the current SIBOR rate of 1.5% (according to Citibank's website).

Iif i were to save $15,000, according to the interest calculator on the SSB website, i would be expecting around $3,671 interest after 10 years.

For the Maxigain account on the other hand, with SIBOR currently being at 1.5%, 0.8 of that is about 1.2%. So using the same 10 years duration, I estimated that for the 1st year while the step-up counter climbs, i estimate the interest rate to be 1% for the first year, and then 2.4% (1.2% from SIBOR + 1.2% step-up) for the next 9 years, giving me an estimated interest of $3,755 including compounding interest (taking that the SIBOR remains constant, and that there are no additional inflow or outflows from the account).

But of course that is providing the SIBOR rate remains the same. So that comes to my question, if anyone has any idea if the SIBOR rate will continue to rise or might it drop? Thanks in advance!

 

[JuniorLion]

So that comes to my question, if anyone has any idea if the SIBOR rate will continue to rise or might it drop? Thanks in advance!

Lololol. Do you believe what people say then?

 

[iwanthp]

Lololol. Do you believe what people say then?

Well not sure just wanted to ask around and see i guess? Like if anyone could explain what affects it etc if possible in layman terms hahah

 

[Johnpierpontmorgan]

Well not sure just wanted to ask around and see i guess? Like if anyone could explain what affects it etc if possible in layman terms hahah

Ask Jerome Powell. Sg interest rate follows us closely cause monetary policy based on exchange targets

We are in the longest bull run in stock markets in entire history. If recession hits. The fed will pause and might even lower interest rate again.
If that happens, you will be smart for locking the current rates with SSB

 

[Mecisteus]

In the next few years, Citibank may change the T&C of it's Maxigain account.

These 2 are not comparable.

 

[chopra]

no to both. illiquid

 

[kehyi4]

no to both. illiquid

https://www.investopedia.com/terms/i/illiquid.asp
"What does 'Illiquid' mean
Illiquid refers to the state of a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value. Illiquid assets may also be hard to sell quickly because of a lack of ready and willing investors or speculators to purchase the asset."

Let's see:
- SSB: can be redeemed (almost) any time at par (ie no loss, no gain), with payout on first business day of following month (max delay - 5 weeks)
- Maxigain: can be withdrawn (almost) instantly at any time (it's a bank account after all), at the cost of reducing/resetting your bonus interest counters

Is this considered illiquid?

 

[a4973]

https://www.investopedia.com/terms/i/illiquid.asp
"What does 'Illiquid' mean
Illiquid refers to the state of a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value. Illiquid assets may also be hard to sell quickly because of a lack of ready and willing investors or speculators to purchase the asset."

Let's see:
- SSB: can be redeemed (almost) any time at par (ie no loss, no gain), with payout on first business day of following month (max delay - 5 weeks)
- Maxigain: can be withdrawn (almost) instantly at any time (it's a bank account after all), at the cost of reducing/resetting your bonus interest counters

Is this considered illiquid?

On the subject of SSB redemption , what is the minimum number of days for 1 cycle of buying some SSB & then redeeming it? Ie how many days will the funds be out of my bank account? Thanks

Sent from Nextbit ROBIN using GAGT

 

[kehyi4]

On the subject of SSB redemption , what is the minimum number of days for 1 cycle of buying some SSB & then redeeming it? Ie how many days will the funds be out of my bank account? Thanks

Sent from Nextbit ROBIN using GAGT

not sure why you would want to do this (seems pointless to me), but here's the calculation using the current SSB issue:

Apply on last day - 25 Sep
Issued - 1 Oct
Request redemption on any day before closing date on 26 Oct - 1-26 Oct
Payout - 1 Nov

So your money is out of your bank account from 25 Sep to 31 Oct - 37 days in total

You would gain 1 mth of SSB interest, but the exercise would also cost you $4 in transaction fees ($2 for application + $2 for redemption)

 

[Sausage]

Why this month no talk about ssb? Application deadline soon

Sent from Xiaomi MI MAX using GAGT

 

[maumu]

think demand has drop as can be seen by the much higher allotment last month...