Posts
This is what Privilege Banking customers at UOB get:
 |
| Apologies for the bad quality. |
These are some seriously small peanuts.
Money in our emergency funds (less than $350,000) if left in a savings account like this will get only 0.1% in interest payment per year! Imagine that.
Better leave the funds in fixed deposits. We will still be paid peanuts but these peanuts are at least bigger.
I suppose this is true not only for emergency funds but also for any money that has been earmarked for some specific purpose in the near future. Don't just leave the money in a savings account.
It is time to upsize the peanuts!
Related post:
A special chest for emergency funds.
Bloggy Award
8 comments:
Hi AK
I put my savings in cimb
Interest rate is 0.8% per annum.
The other inconvenient is that they only have 2 branches in Singapore and no cash deposit machine. Have to deposit via the counter.
However, with the introduction of "FAST" , interbank bank transfer is immediate so no more hassle of going down in person to deposit or to transfer 3 days in advance to posb/uob/Ocbc.
Hi Jimmy,
Yes, people told me about CIMB. I am just too lazy to make changes. My funds are still mostly kept by the 3 local banks. ;p
For a while now, I keep some money with the stock brokerage as well. That pays 0.55% per annum. More for convenience than anything else.
For a while now, I believe that fixed deposits are the best for emergency funds. Imagine the money being in a glass case that says "In case of emergency, break glass." Not supposed to touch them unless really needed. So, fixed deposits are perfect and they earn higher returns too. :)
Try DBS. Multiplier Account or OCBC 360 Account which give interest rate that is better than fixed deposit rate.
Definitely worth it to put $50k in the new ocbc 360 account. Can get a "risk-free" rate of 3% and no lock in period.
At present, UOB offers Fixed Deposit Rates of 1.08% for 13 months (very consistently) and 1.20% for 18 months. This is GUARANTEED, if you stick to the plan.
For the multiplier accounts and 360 account, it is not guaranteed. As such, having a 360 account myself, it has been revised recently. The interest rates are subject to the bank's discretion and may change anything throughout the year. However, I would not expect any change in the coming year, well, for the sake of credibility for the banks. However, there is no surety that they will revise / adjust down the interest rates if they deem necessary.
As for fixed deposits, these rates are guaranteed. Pretty straight forward and hands-off. Once matured, you have the option to renew it, or take it out. :)
Hi PY, Raymond and Elvin,
Thanks for sharing. Appreciate it. :)
Love that analogy about "in case of emergency, break glass". So apt!! Haa!
Hi Henry,
Thank you. :)
Sometimes, if we have to break the glass, we have to. ;)
Post a Comment