USD Fixed Deposits

[boroangel]

Would admit I don't have as much knowledge in buying US t-bill too. I did look at it briefly but seems there are quite a few things I don't understand so I gave up, lol. FD just seems more straightforward and easy.

I think USD TT fee to DBS is about $10 only (charged by DBS). Haven't tried to do it from IBKR though. Not sure if IBKR charges anything on their end.

DBS USD FD minimum is 5k USD. Gotta place more than 250k USD for preferential rates. I asked DBS treasures if they have any promo rates but seems like they don't atm. She says she will get back to me though.

Hey everyone, sharing a hack here.

If you transfer from IBKR in USD to a DBS USD fixed deposit (USD), it automatically puts that amount into a default 1 month deposit and there is no $10 commission fee. Change the maturity instructions to withdraw it to your emulticurrency account. After 1 month move the money as you required. I been doing that for a couple of years now. Please however do call DBS to check in case they change their policy anytime.

For DBS to IBKR even more straightforward, use DBS remit, same day transfer zero fees.

This IBKR DBS method has saved me lots of commission and wire fees over these years.

 

[guzzler3]

so certain next year will have bigger dip?

in any case even without putting in US-T, the interest rate on unused cash also pretty decent. it's like 2.58%?

Probably higher than 90% confidence that we see a bigger dip next year. Every recession cycle ends with a unemployment spike. We haven't really seen it yet but its already starting in tech. What's gonna force Powell to pivot? Only 2 things. High unemployment or black swan credit crisis. In both scenarios, stocks crater. Tech/Nasdaq more so.

Unused cash on IBKR you mean? I probably will switch to no lock in USD deposits next year when I start seeing more value in stocks. I still believe we fall back to pre-covid S&P 2400-2600 area before we can recover. Still a painful road ahead.

 

[reddevil0728]

Probably higher than 90% confidence that we see a bigger dip next year. Every recession cycle ends with a unemployment spike. We haven't really seen it yet but its already starting in tech. What's gonna force Powell to pivot? Only 2 things. High unemployment or black swan credit crisis. In both scenarios, stocks crater. Tech/Nasdaq more so.

but could have priced in by now also.

Unused cash on IBKR you mean? I probably will switch to no lock in USD deposits next year when I start seeing more value in stocks. I still believe we fall back to pre-covid S&P 2400-2600 area before we can recover. Still a painful road ahead.

meaning cash in IBKR itself.

 

[guzzler3]

but could have priced in by now also.

meaning cash in IBKR itself.

I don't think its priced in due to a few reasons.

1) Powell said few days ago terminal rate is gonna be higher n longer. But how high n long? Nobody knows. Quite a big percentage of the market feels the Fed don't have the resolve to tighten to 5-6% and hold it there for an extended period of time. Why? Because most of us haven't been through the 70s high inflation period. We are used to the Fed put since 2008. With inflation so high n sticky, Fed can't relent on their tightening

2) Market too optimistic about the earnings moving forward. Earning revision downwards is going to surprise everyone. We saw the tech earning disaster this quarter and its going to get worse. That's why many are laying off their employees.

3) Recession not priced in yet. Dow Jones still pretty strong. Pretty evident demand destruction is not seen yet which is another scenario Fed wants

 

[reddevil0728]

I don't think its priced in due to a few reasons.

1) Powell said few days ago terminal rate is gonna be higher n longer. But how high n long? Nobody knows. Quite a big percentage of the market feels the Fed don't have the resolve to tighten to 5-6% and hold it there for an extended period of time. Why? Because most of us haven't been through the 70s high inflation period. We are used to the Fed put since 2008. With inflation so high n sticky, Fed can't relent on their tightening

2) Market too optimistic about the earnings moving forward. Earning revision downwards is going to surprise everyone. We saw the tech earning disaster this quarter and its going to get worse. That's why many are laying off their employees.

3) Recession not priced in yet. Dow Jones still pretty strong. Pretty evident demand destruction is not seen yet which is another scenario Fed wants

anyway we wouldn't know till after the fact. just be more defensive lor

 

[guzzler3]

anyway we wouldn't know till after the fact. just be more defensive lor

Agree, thats what makes life interesting sometimes. We try to bet on certain scenarios manifesting and hopefully profit from it

Risk/reward favours the bears when the Fed is not accommodative.

 

[dantom04]

anyone still doing this? i have usd in dbs multi currency.... so might as well put in us fd right? 3mths rate is currently 4.25%pa... worth to put in?

 

[guzzler3]

anyone still doing this? i have usd in dbs multi currency.... so might as well put in us fd right? 3mths rate is currently 4.25%pa... worth to put in?

yes, I'm doing 3mths fixed USD in DBS. I'm bullish on USD in the next 12 mths so I think currency risk is pretty low. Just don't lock too long else it will be very inflexible.

 

[CaptainWu]

anyone still doing this? i have usd in dbs multi currency.... so might as well put in us fd right? 3mths rate is currently 4.25%pa... worth to put in?

I am doing this for the last few months, just putting those USD waiting to invest into the Market (if continue to be bearish in the next 3-6 months).

 

[RedsYWNA]

Prefer to leave excess USD in IBKR USD account instead. Earning 3.33% after the first $10k, and come Dec, its likely to earn 3.83% - 4.08%. Its also liquid.

 

[boiboi123]

Prefer to leave excess USD in IBKR USD account instead. Earning 3.33% after the first $10k, and come Dec, its likely to earn 3.83% - 4.08%. Its also liquid.

how does this work? do you buy t bills

 

[reddevil0728]

how does this work? do you buy t bills

search US-T in IBKR

 

[boiboi123]

search US-T in IBKR

thank you, sorry I should have been more clear. does it mean idle cash? I saw you mentioned 2.58% idle so this 3.33% is higher.

If I see the bond IBCID596740972 issued 20221115 (I assume 15 Nov 2022) and then maturity 20230314 -> that's 4 months? and then trading at 98.656. That's about 1.36% return over 4 months. If I buy it, does it automatically repay $100 at expiry?

 

[RedsYWNA]

thank you, sorry I should have been more clear. does it mean idle cash? I saw you mentioned 2.58% idle so this 3.33% is higher.

If I see the bond IBCID596740972 issued 20221115 (I assume 15 Nov 2022) and then maturity 20230314 -> that's 4 months? and then trading at 98.656. That's about 1.36% return over 4 months. If I buy it, does it automatically repay $100 at expiry?

Yes, I mean idle cash above USD 10k....

https://www.interactivebrokers.com/... to clients,to potentially earn higher rates.

 

[reddevil0728]

thank you, sorry I should have been more clear. does it mean idle cash? I saw you mentioned 2.58% idle so this 3.33% is higher.

If I see the bond IBCID596740972 issued 20221115 (I assume 15 Nov 2022) and then maturity 20230314 -> that's 4 months? and then trading at 98.656. That's about 1.36% return over 4 months. If I buy it, does it automatically repay $100 at expiry?

2.58% was last time.

yea

 

[boiboi123]

Yes, I mean idle cash above USD 10k....

https://www.interactivebrokers.com/... to clients,to potentially earn higher rates.

2.58% was last time.

yea

thank you very much

 

[gnooliew]

Hey everyone, sharing a hack here.

If you transfer from IBKR in USD to a DBS USD fixed deposit (USD), it automatically puts that amount into a default 1 month deposit and there is no $10 commission fee. Change the maturity instructions to withdraw it to your emulticurrency account. After 1 month move the money as you required. I been doing that for a couple of years now. Please however do call DBS to check in case they change their policy anytime.

For DBS to IBKR even more straightforward, use DBS remit, same day transfer zero fees.

This IBKR DBS method has saved me lots of commission and wire fees over these years.

Can you elaborate how to transfer from IBKR in USD to DBS USD FD? I tried to do an internal transfer of USD between a DBS MCA to the FD account, it doesn't accept the FD account as a valid account to transfer funds to.

You mean can indicate the DBS FD account number when transferring from IBKR and DBS will accept and set it up as a 1 month USD FD by default?

 

[kongming78]

I have USD in my DBS multiplier account. But i would like to transfer to other Singapore local bank USD account. May i know if i can transfer via DBS "USD remit and overseas remit" ? I saw DBS website stated this is to transfer to overseas but doesn't stated if can transfer locally within Singapore ?

 

[reddevil0728]

I have USD in my DBS multiplier account. But i would like to transfer to other Singapore local bank USD account. May i know if i can transfer via DBS "USD remit and overseas remit" ? I saw DBS website stated this is to transfer to overseas but doesn't stated if can transfer locally within Singapore ?

have you tried contacting DBS?

or possible try to carry out a DBS REMIT and see if they allow u to fill in the details of the other sg banks?

 

[CaptainWu]

I have USD in my DBS multiplier account. But i would like to transfer to other Singapore local bank USD account. May i know if i can transfer via DBS "USD remit and overseas remit" ? I saw DBS website stated this is to transfer to overseas but doesn't stated if can transfer locally within Singapore ?

I have done this and through DBS to SCB local USD with DBS Remit. At first I thought only one time charge of $30, and not realized there is also agent bank charges another USD$35 (which was unknown until its transferred). I called DBS and luckly got waived this time so the transfer is quite an expensive lesson if no waiver.