Saving Accounts Interest rates

With rising costs and increased learning needs, financing our children's education is no longer a simple walk in the park. Discuss with other parents about how they are managing their finances to cope with their expenses.

Saving Accounts Interest rates

Postby Nebbermind » Tue Sep 04, 2012 9:03 am

Wifey was queuing up to do some banking (actually to get transfer her $$$ to another bank) at POSB and she said the Q was incredibly long and slow.

Why are people still putting money into the local banks? I think they are giving like 0.05%...

For $10k, 1% = $100. So 0.05% is $5...good enough for a Burger King Affordable Meal once a yr!! :stupid: :stupid: :stupid:

If u have $50k, your family can celebrate at BK once a yr!!! :slapshead:

Which banks have the best rates or good products now???

Nebbermind
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 14662
Joined: Tue Dec 22, 2009 11:40 am
Total Likes: 148


Re: Saving Accounts Interest rates

Postby Edureach » Tue Sep 04, 2012 11:38 am

Nebbermind wrote:Wifey was queuing up to do some banking (actually to get transfer her $$$ to another bank) at POSB and she said the Q was incredibly long and slow.

Why are people still putting money into the local banks? I think they are giving like 0.05%...

For $10k, 1% = $100. So 0.05% is $5...good enough for a Burger King Affordable Meal once a yr!! :stupid: :stupid: :stupid:

If u have $50k, your family can celebrate at BK once a yr!!! :slapshead:

Which banks have the best rates or good products now???



In this low interest rate enviroment, any product introduces by banks that carries a promised coupon rate of 2% or more if any will either hve conditions or need the consumers to carry some form of risks.

If you hve been regularly visiting popular book store, why not consider buying some shares for dividends gain? At current trading price of 23-23.5 cts, the dividend yield is 5%. Of course is not a fix rate coupon and its very much depends on yr-yr performance. At its worst yr 2009, the dividend yield was still 3% at current price. They hve a cash hoard of more than $100M, which gives an investor some comfort(approx 14cts). Invariably, u are valuaing its entire business at approx $80M or 9cts/share.

Another one which is more adventurous is Tai Sin Electric, a cable mgfr. At current trading price of 24-24.5 cts, its dividend yield exceeds 8%. Throughout its last 5-yr period, the co has never failed to declare a dividend yield that was less than 6%.

Both cos carry tradinbg risks ie fluctuation of its share prices. Moeover, its businessses are not exactly exciting to entice instituition investors to park their money. So u need to be patient and just sit still unless something major crops up.

My intention here is not to get you to buy these shares or worst engage in trading. The main objective is to share with you the possibilities of putting your money whether cash or CPF to work harder for you.

Edureach
BrownBelt
BrownBelt
 
Posts: 578
Joined: Sat Nov 06, 2010 9:44 pm
Total Likes: 0


Re: Saving Accounts Interest rates

Postby pirate » Mon Sep 10, 2012 1:14 pm

People are still putting money into local banks because it is presumably safer than stuffing it into the mattress.

pirate
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 3926
Joined: Mon Jul 02, 2012 1:09 pm
Total Likes: 163


Re: Saving Accounts Interest rates

Postby Lyyyn » Tue Sep 25, 2012 8:41 pm

For me, it's more for convenience reason. Can do ATM, debit cards, internet banking, now mobile banking :)

Anyway, money in bank is not for growing. It's more for safe-keeping.

By the way, not too much money in the bank, as it's depleted against inflation each year. But still, cannot afford not to have cash. Emergency cash and opportunity cash must always available just in case... :)

Lyyyn
KiasuNewbie
KiasuNewbie
 
Posts: 7
Joined: Tue Sep 25, 2012 12:59 pm
Total Likes: 0


Re: Saving Accounts Interest rates

Postby 3Boys » Thu Oct 11, 2012 11:10 pm

Thanks to Dr Bernanke, savers worldwide are being mercilessly punished for their thrift.

3Boys
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 5014
Joined: Tue Sep 02, 2008 5:28 pm
Total Likes: 220



Re: Saving Accounts Interest rates

Postby verykiasumummy » Thu Oct 11, 2012 11:21 pm

ocbc has monthly savings that gives 1% per annum... not alot la... but at least better than nothing... i used to save for 2 yrs but heard that now only 1yr or 3yr option..

verykiasumummy
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 2050
Joined: Fri Mar 18, 2011 5:10 pm
Total Likes: 27


Re: Saving Accounts Interest rates

Postby Imami » Fri Oct 12, 2012 1:46 pm

Interest rate is indeed more insignificant than insignificant these days…. But it does not stop me from putting my money in the bank. Recently, I set up a savings account with OCBC. It is supposed to be pay out more interest than a typical savings account. Hey, indeed leh – it is yielding more interest (ok, don’t get too excited, just a bit more).

Another one is the POSB My savings Account – previously known as “save as you earn” A/c. it is also giving out more interest. The higher the monthly amount you indicate, the more interest it yields (ok, again, don’t get too excited).

Imami
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 10839
Joined: Fri Feb 17, 2012 10:04 pm
Total Likes: 36


Re: Saving Accounts Interest rates

Postby micollh » Fri Oct 12, 2012 2:45 pm

ocbc mthly ssavings 3 years give u 1%.. each month contributed into the savings account for the kids.. e.g $100 inthe the account monthly for 3 years.. 1% per annum.

Another one is 1 time, ocbc is 1 % after 2 years, standard chartered step up, i thk 15 oct last day. min 10k, u get 2% after 2 years.. they calculate 3mthly. go to teir website for details.

I just done my part for the kids. ocbc mthly savings for my kids already matured 2 times since they were born.. happy as i manage to gain more interest rate for them.
Last edited by micollh on Fri Oct 12, 2012 2:51 pm, edited 1 time in total.

micollh
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 3320
Joined: Tue Feb 15, 2011 3:28 pm
Total Likes: 0


Re: Saving Accounts Interest rates

Postby micollh » Fri Oct 12, 2012 2:46 pm

verykiasumummy wrote:ocbc has monthly savings that gives 1% per annum... not alot la... but at least better than nothing... i used to save for 2 yrs but heard that now only 1yr or 3yr option..


1% is for 3 years now.. few years back i thk 2 years get 1% liao.. now not so good anymore. but better than nothing since it's mthly savings mah..

micollh
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 3320
Joined: Tue Feb 15, 2011 3:28 pm
Total Likes: 0


Re: Saving Accounts Interest rates

Postby lapapillion » Fri Oct 12, 2012 2:53 pm

Folks, do consider money market fund (MMF) too. These are as safe as bank deposits (okay, just a notch riskier), because they invests in good corporate bonds, time deposit too. It's not the traditional interest bearing account like in banks though. You put in a fixed account, then they will convert it to units (somewhat like unit trust). So say that when you put in $10,000 into the MMF @ $1.000 per unit, you get 10,000 units. Say after 1 month, the unit price becomes $1.005, you'll get $50. No commission or whatsoever and you can take out anytime you want with no penalty.

If you all are interested I can share more. I've been putting my excess fund in POEMS MMF for more than 5 yrs already, so I think I can share my experience.

lapapillion
OrangeBelt
OrangeBelt
 
Posts: 87
Joined: Wed Oct 10, 2012 5:48 pm
Total Likes: 2


Next

Return to Money Matters