<< Update (5-Aug): The POSB 1.55% promotion is over ! >>
POSB is currently running a 1.55% for 6 months 'fresh funds' promotion. The interest rates of 1.55% is comparable with the best interests rates savings account in the market. The only drawback is that the funds will be ear-marked for 6 months, rendering it unusable for the period. If you have existing spare cash and would like to earn some returns, this promotion would be ideal for you!
Here are some of the important facts:
Promotion Period: 25 July 2016 to 4 August 2016
Fresh Funds Amount: Capped at S$50,000, with no minimum amount required.
Singapore Deposit Insurance Corporation insures this account for up to S$50,000.
Singapore Deposit Insurance Corporation insures this account for up to S$50,000.
Step 1
Open a POSB Fresh Funds Account online by 4 August 2016.
If you have iBanking: Apply via iBanking
-> Apply -> Deposit Accounts -> 'POSB Fresh Funds Account"
-> Apply -> Deposit Accounts -> 'POSB Fresh Funds Account"
If you do not have iBanking: Apply via ATM
- You will have a 'Fresh Funds' Bank Account Number which you can now deposit your S$50K.
Step 2
Deposit fresh funds* into your POSB Fresh Funds Account by 4 August 2016, 3.30pm.
During the POSB Fresh Funds Account opening process, you will be prompted to select an existing POSB/DBS Current or Savings Account to be used for signature reference. This same account will be used for the crediting of the Cash Gift Interest.
*Fresh funds refers to funds deposited through cheque(s), cashier's order(s), demand draft(s), cash deposits, FAST credit, telegraphic transfer, share payment, IBG funds transfer and MEPS receipt.
Note: You cannot use cash from existing POSB/DBS accounts.
Note: You cannot use cash from existing POSB/DBS accounts.
Step 3
Maintain the fresh funds deposited in the account for 6 months until 4 February 2017.
Step 4
The Cash Gift Interest will be credited into your reference account by 15 March 2017. Your POSB Fresh Funds Account will thereafter be auto-closed and the funds will be credited into your reference account.
Illustration of interest earned (S$10k and S$50k):
SGD $10,000 x 1.55% p.a. x 184/365 days = SGD$78.14
SGD $50,000 x 1.55% p.a. x 184/365 days = SGD$390.68
It is worthwhile to note that successful customers will receive a confirmation SMS within 5 working days from the point of account opening. So do take note of this SMS and check with POSB if you have done the application steps listed above but did not get a confirmation. It took 1 working day for my fresh fund account to be created. I got my SMS notification on the 2nd working day.
Important side note:
Auto-closure of the account will only happen on 15-Mar. To prevent idle funds from sitting in the account (Roughly 39 days), i would suggest to make a trip down to POSB/DBS to close the account after 04-Feb-17.
Happy Saving!
Important side note:
Auto-closure of the account will only happen on 15-Mar. To prevent idle funds from sitting in the account (Roughly 39 days), i would suggest to make a trip down to POSB/DBS to close the account after 04-Feb-17.
Happy Saving!
