In this guide, i will show you how we can stretch our savings with a simple click every other month.
Now lets see...
Interest Rates for Savings Accounts of the popular banks:
| 1) POSB / DBS | : 0.05% |
| 2) UOB | : 0.10% |
| 3) OCBC | : 0.05% |
| 4) SCB | : 0.10% |
For illustration purposes (and simplicity’s sake), we will avoid the compounding int. calculation and assume we have a small sum of $10,000.
10,000 X 0.05 = 5$ Per Year.
That’s roughly 45 Cents per month. To put it into perspective, 50 cents cannot even buy you a cup of coffee from ToastBox!.
Now, let’s take a look at some of the on-going promotions for interest rates on savings accounts.
SCB eSaver
UOB Uniplus
What is “Bonus on Eligible Incremental Amount” ?
Well, this basically means ‘fresh funds’ with respect to the average daily balance of the month before the promotion.
%2BLimited%2B-%2BGoogle%2BChrom_2014-12-10_11-35-55.jpg "SCB eSaver Promotion")
For example: If, in October, we have 500$ on average in our savings account. To be eligible for the promotional rates, we will need to transfer ‘fresh’ funds into the account.
By depositing 10,000$ on the 1st Nov, that 10,000$ will qualify for the additional 1.10% Interest.
500 X 0.10 % = 0.5$
10,000 X 1.10 % = 110$
Total Interest Earn for the Promotion (2 Months) = 110.5$ x (2 / 12) = 18.4$
So What happens after the promotion period?
Well, the banks are smart too, these promotional rates will only last for the promotion period (usually 2 months). After which, it will automatically revert back to the crappy old rate (0.1%, for the example of SCB).
Let me share my tip in Supercharging my Savings.
Illustration below:
SCB UOB SCB .. UOBJan-Feb Mar-April May-June .. Nov-Dec
The funds will then sit inside the UOB account from March to April and begin to qualify for the promotional interest. By continually moving our funds to utilize the awesome interest rates promotions, we are growing our savings!
This is too much hassle!
Some of my friends have mentioned that this is too much hassle!.
In all honesty, all it takes is a click of the button. With iBanking, a fund transfer is just a few clicks away. There is no reason to be lazy when money can be made!.
Your future self will thank you for this!.
Still not convinced ?
Let me give you an example of someone who does absolutely nothing in comparison to someone who makes use of the on-going interest rates promotions (as mentioned in this guide).
Adam (Transfers his Savings to utilize the promotional rates)
500 X 0.1 % = 0.50$
10,000 X 1.10 % = 110$
Total Interest Earn for the Promotion (12 Months) = 110.50$
Eve (Does nothing to her savings)
10,500 X 0.1 % = 10.50$
Total Interest Earn without Promotion (12 Months) = 10.50$
Adam literally earns 10x more interest than Eve over the course of 1 year!!!
The interests paid by Banks are accrued annually, but credited to your account on a monthly basis.
Hope this guide helps you make the best use of the money that is sitting freely in your Savings accounts.
Check out this site (money lobang) for some Interest Rates comparisons & promotions among the Banks in Singapore!
There are some really good deals out there, like the OCBC 360 Account.
There are some really good deals out there, like the OCBC 360 Account.
All these promotional rates seem to be below OCBC 360 a/c interest rate!
ReplyDeleteYes, but these are the typical savings accounts that have no caveats (e.g: Crediting Salary, Spending Min. 400$ on Credit Cards, Paying xxx bills) to earn the interest.
DeleteInfact, if you are about to fulfill the above mentioned criteria, then OCBC360 is indeed the best account for savings of up to 50,000$ (interest bearing wise).