POSB 1.55% Fresh Funds Promotion

<< 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.

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"

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. 

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! 

Previous POSB CNY Promotion

Credits: 1.55% POSB Fresh Funds Promotion

POSB 1.88% CNY Promotion

POSB has come up with an extremely attractive, albeit creative, plan to attract new deposits. The 1.88% Chinese New Year Savings/Current Account deposit promotion, behaves like a fixed deposit but works for all savings and current account holders. Essentially, one would have to register for this promotion and transfer the funds into the said account. After the funds have been ear-marked, they will be unavailable for withdrawal and will qualify for the 1.88% "cash gift"(interest) at the end of the promotion on 31-JAN-2016.

1.88% 

The Promotion

All you need to do to qualify for this promotion:

1) Register your interest (via the POSB Link)

Upon successful registration, you will be prompted with the following message.

2) Transfer the fresh funds *

*Fresh Funds Deposit means funds transferred from non-DBS/POSB accounts, through cheque(s), cashier’s order(s), demand draft(s), cash deposits (CDM Counts here), FAST credit (Fresh Funds Deposit that is more than SGD 10,000 via FAST, more than one (1) FAST credit is allowed) and MEPS receipt. These exclude any funds from any DBS/POSB account and funds deposited via any DBS/POSB cheque(s), DBS/POSB cashier’s order(s), or DBS/POSB demand draft(s).

3) Do not touch the funds (It will be ear-marked* anyway) for the full period (From Deposit to 31JAN16)

As of this post, the additional 88$ Cash Gift has been fully redeemed by the first 10,000 customers. 

Illustration (Provided by POSB):

Customer A registers via online through DBS website during the Promotion Period and successfully top-up a lump-sum of SGD 1,000,000 to a CASA* Account by 28 February 2015. 

Cash Gift earned by Customer A under the Promotion as follow: SGD 1,000,000 * 1.88%p.a. * 365/365 days = SGD 18,800.00 

Note: 12 months period is from 1 February 2015 to 31 January 2016 = 365 days 

* CASA := Current Account / Savings Account

The earmarking by DBS will start between 1 February 2015 and 31 March 2015, and the Fresh Funds Deposit will be earmarked by DBS for the period ending on 31 January 2016 (“the Earmarked Period”). The Fresh Funds Deposit will not be available for withdrawal during the Earmarked Period.

Terms and Conditions

http://www.posb.com.sg/personal/promotion/savings-promo

FAQ

1) What does fresh fund mean ?
- Any form of funds that are not already in a POSB or DBS account. These can be in the form of FAST Transfers, Cheque/Cash Deposits, Demand Draft, etc.

2) If i transfer from another Bank using FAST over 5 times for 50,000$. Does it constitute as 1 lump sum and qualify for the promotion ?
- Yes it does. As long as all the transfers reach POSB before the 28-FEB. They will constitute as a lump sum.

3) What happens to my Ear Marked funds?
- When your funds are ear marked, they will not be available for withdrawal. However, should there be a need to withdraw, you can proceed with the following steps: 

1. You may contact the Bank to request for lifting of the Earmark.
2. It will take up to 3 working days to release the funds.
3. No additional penalties. However, you will forfeit the full interest (To be paid on 31-JAN-16).

4) When will my funds be ear marked ?  *Updated 03-MAR
- POSB will proceed to ear mark funds from 01-FEB to 31-MAR. I have no clue regarding the selection of accounts for ear marking (whether it is done on a first-come-first-serve basis, etc), but i assume that as long as you have successfully registered and transferred the amount into your account (meeting the criteria mentioned above), you will be eligible for this promotion.

Summary

In essence, this promotion is akin to a fixed deposit without the penalty for early withdrawal. It is also designed to reduce the additional trouble involved in creating a fixed deposit account, yet appeal to the group of people who are interested in similar yielding products. 

If you have spare cash sitting around in other bank accounts, there is absolutely no harm utilizing this promotion. Aside from the 1 year ear marked period, the 1.88% beats the regular eSaver and UOB Uniplus promotional rates.


If a 1 year 'lock-in' period is too long, you can read more about my article on Maximizing your savings


PS: I have no affiliation with POSB.