Saving Accounts Interest rates

[Lyyyn]

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...

[3Boys]

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

[verykiasumummy]

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…

[Imami]

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).

[micollh]

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.

[micollh]

verykiasumummy:

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..

[lapapillion]

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.

[Imami]

lapapillion:

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.

but what happens if the unit price becomes $0.95? Or if the price doesnt chagne?

[lapapillion]

Imami:

but what happens if the unit price becomes $0.95? Or if the price doesnt chagne?

That's a valid question. So far I've been in it since 2006/07, before the financial crisis starts. For the POEMS MMF, the unit price has never gone lower than the previous month before. What did happened was that the interest rate went from 2.01% per year (annualised) in 2007 to about 0.58% (annualised) in 2012. It's nothing to shout about, but still better than any standard savings acct locally.

There is another MMF in the market, not from POEMS. That did drop in unit value during the deepest moment of the crisis. But the following month, it bounced back. I suspect that's the case because of the panic that consumers have with regards to the fund (in fact, all financially related stuff), hence there's a sudden exodus of money, causing the unit price to dip.

But for the one that I'm familiar with, POEMS MMF, did it drop in value before? Not since I tracked it in 2007. I tracked it on a monthly basis since 2007, and it haven't went lower before. It might not rise as fast but it certainly didn't drop in value.

[micollh]

lapapillion:

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.

interesting.. let me check with my agent !shall update