UOB and OCBC hike final dividends! Huat ah!

Good news from UOB and OCBC!

When DBS declared a special dividend, I wondered if UOB and OCBC would do the same.

Unfortunately, there is no special dividend from UOB and OCBC.

However, they did declare higher final dividends!

Source: UOB.

UOB increased their final dividend by 15c or 25%.

This isn't too shabby since it is very close to a 50% payout ratio.

We can probably expect this to be the norm in future as it isn't a special dividend and, thus, unlikely to be a one off event.

As for OCBC, they hiked their final dividend by 12c!

While it is lower than UOB's 15c hike in absolute terms, it is much higher in percentage terms.

An increase of 12c from 28c to 40c is an almost 43% hike!

I am so stunned like vegetable!

OCBC is not only one of my largest investments.

OCBC is my largest investment in equities. 

My investment in OCBC is much larger than my investment in UOB.

So, my passive income in the form of a final dividend from OCBC is going to be very much larger this year compared to last year.

This is especially when I increased the size of my investment in OCBC many times in 2H 2022.

Although my war chest was rather depleted, I was able to do this by reducing my investments in Centurion Corp. and ComfortDelgro which were both underperforming.

In my blog on Wilmar's record dividend, I said I was feeling a little giddy.

I think it just got worse.

Want evidence?

See the new photo of AK below.

Alamak!

I slapped myself hard and reminded myself that the higher dividends from our local lenders will go some way to filling shortfalls from Sabana REIT, CapitaLand China Trust and IREIT Global this year.

Still early days, to avoid possible disappointment, I am keeping expectations low with regards to full year passive income for 2023.

After all, I cannot dictate how much my investments should pay me.

I will continue to exercise prudence when it comes to expenses as, generally, this is something I have considerable control over.

However, to be honest, I am feeling more sanguine about this year's passive income now.

Whether the year would end on a high note for me as an investor for income should become clearer in another 6 months or so from now.

Till then, I just have to be patient and wait.

"Wall Street makes its money on activity. You make your money on inactivity." 

- Warren Buffett

To fellow UOB and OCBC shareholders, congratulations! Huat ah!

References:
1. Reallocation of resources.
2. DBS, OCBC and UOB.
3. DBS: Special dividend.
4. 4Q 2022 passive income.
5. Largest investments (4Q 2022.)

OCBC & UOB follow DBS: Special dividend?

What a great way to start a morning!

What a great way to start the week!

In my most recent blog, I talked to myself about my plan when it comes to fixed income.

However, I also mentioned that I have a significant exposure to equities as fixed income alone would not get us to financial freedom.

For most of us, this is the hard truth.

We must invest in bona fide income generating assets and businesses if we want to be financially free one day.

The decision to invest in DBS so many years ago has been paying dividends, literally.

Investing in OCBC a little later and then in UOB in the COVID-19 bear market has been very rewarding too.

Now, I wonder if OCBC and UOB might follow DBS and reward their shareholders a little better?

Let me try asking my mental bowling ball which thinks it is a crystal ball.

Compared to UOB, there is a better chance of OCBC following DBS in declaring a special dividend as OCBC's CET-1 ratio is more robust.

Still, if UOB wanted to, they could declare a special dividend too as their CET-1 ratio, although not as strong, is pretty decent.

Don't hold your breath though as this is what we got from a mental person asking his mental bowling ball for directions.

Coming back to DBS, a special dividend of 50 cents a share is pretty impactful to me.

This is especially when DBS is one of my largest investments today.

I think I might give myself a little treat.

Won't overdo it since 2023 still has a long way to go and we don't know how the rest of the year is going to turn out.

Like I shared in my blog on my full year 2022 passive income, I am still expecting zero growth in my 2023 passive income.

This is just me being realistic as some of my investments would probably be generating lower income for me.

CapitaLand China Trust has already reported a lower DPU, for example.

Oh, well.

Happy thoughts for now.

To all fellow DBS shareholders, hip hip huat ah!

Recently published:
1. SSB, T-bill, CPF and UOB ONE.
2. Changes to portfolio (Jan 23.)

References:
1. Largest investments updated.
2. 2022 passive income.
Latest YouTube video by AK:

Add ComfortDelgro or DBS, OCBC and UOB?

Reader says to AK:

Thanks lots for your sharing. 

I just started reading your blog recently after hearing from my brother and sis-in-law. 

May I seek your thoughts on averaging down comfort delgro?

AK replies to reader:

I used to think that ComfortDelgro was a very defensive investment in the transport sector unlike SIA.

See:
ComfortDelgro: Analysis.

That was until the pandemic hit our shores which saw the entire sector impacted badly. 

Small comfort but ComfortDelgro still fared better than SIA during the pandemic.

See:
COVID-19 and ComfortDelgro.

The worst is probably over now for ComfortDelgro unless we are hit by another pandemic or something just as bad. 

However, ComfortDelgro still has headwinds such as the irrational competition from GRAB and also FOREX risks due to a relatively strong Singapore Dollar. 

A pretty significant portion of ComfortDelgro's income is derived from overseas ventures, after all. 

The British Pound Sterling, the Australian Dollar and the Chinese Yuan have all weakened against the Singapore Dollar. 

I would rather add to my investment in our local lenders, mostly OCBC and UOB, which seems like a better idea than investing in ComfortDelgro as their earnings enjoy a strong tailwind with rapidly rising interest rate.

Of course, this is my plan for myself.

All of us need a plan, our own plan.

Just talking to myself, as usual.

Reference:
DBS, OCBC and UOB at 40% of portfolio?

DBS, OCBC and UOB at 40% of portfolio?

I remember Warren Buffett said that when he first started out as a professional investor, he had more ideas than he had money.

Later on, he had a lot more money than he had ideas.

It isn't as popularized as other things he has said before and, so, it is easy to forget.

I am probably stuck at the "many ideas but not much money" stage.

Well, I guess most of us are.

There are so many things I would like to invest in but I simply do not have enough funds to do so at least not in any meaningful way.

So, what to do?

Before going on, you might want to listen to this video I just uploaded to my YouTube channel on what Warren Buffett and Charlie Munger said:

 

I should pick what I think is my best idea at any one time.

I should not scatter my limited resources which is something I have been guilty of doing.

The operative phrase being "I think."

Yes, I could be wrong.

My best idea for a while now has been to invest in the banks.

So, I will latch onto that idea and further grow my exposure to the local banking sector.

As I feel DBS doesn't seem to offer as much value for money, I will grow my positions in OCBC and UOB mostly.

How am I actually going to do this?

As a retiree, I lack an earned income and I consume most of my passive income. 

So, I have a harder time growing my investment portfolio.

Taking a leaf from Warren Buffett's book, the plan right now is to reduce exposure to non-bank investments on market up days and to increase my investment in the banks on market down days.

It is going to be a gradual process and will likely happen over many, many months.

I would like to see my combined investment in DBS, OCBC and UOB account for about 40% of my investment portfolio.

Now, they are at about 30%.

Having said this, to be perfectly honest, I could change my mind partway as I am pretty satisfied that my portfolio right now is able to bring home sufficient bacon.

I am also not wired like Warren Buffett or Charlie Munger and might not be able to see this through.

If you agree with me, beware, you might be mental just like me.

If you disagree, you could be right and I could be wrong.

Just talking to myself, as usual.

Recently published blog:
Largest investments: When to worry? What to do?

and from my YouTube channel:

Investment in OCBC is larger now.

During the pandemic induced bear market, as the dust was settling, within a few weeks, I made a relatively large investment in UOB. 

The plan was to get my investments in DBS, OCBC and UOB to be on equal footing with each other.

Mr. Market's severe bout of depression provided the perfect opportunity to execute the plan.

See:

Buying DBS, OCBC and UOB.

and

Three local banks, 3 REITs...

Quite simply, the plan was about diversification.

That decision turned out very nicely as UOB went on to buy Citibank's assets in a few Asian countries. 

That move is expected to give a boost to UOB's future earnings and could lead to a more favorable view of the local lender.

More importantly, it could also mean higher dividends in future.

This week, I decided to have a stronger focus on value and increased my investment in OCBC.

The size of this increase is around 10%.

Doesn't sound like a lot but given the size of my investment in OCBC, it is pretty sizeable to me in dollar terms.

OCBC offers better value for money when compared to DBS and UOB, in my opinion.

Amongst the local lenders, OCBC is trading at the smallest premium to book value.

OCBC also offers the highest dividend yield and this is made more attractive by the fact that it isn't the one with the highest payout ratio either.

With the recent purchase, OCBC has become my largest investment in the banking sector.

OCBC should continue to bring home the bacon and with a larger investment, I am looking forward to larger servings in the future.

If Mr. Market should offer me lower prices, all else being equal, I would most probably be adding to my investment in OCBC again.

I don't know exactly why OCBC's valuation is cheaper than DBS or UOBs'.

However, if I were to hazard a guess, I would say it is probably because of OCBC's exposure to China.

People are generally very wary of China and investments in China in general.

It has been going on for a while now.

Alibaba, anyone?

China accounts for about 25% of OCBC's loans.

See:

Source: OCBC

Alamak!

How like that?

Has Mr. Market priced in a Chinese risk premium?

If we believe that China is going the way of the Dodo, then, maybe, we should avoid investing in OCBC for now.

If we believe that the negativity towards China and, to a smaller degree, OCBC is overdone, then, we want to stay invested.

Having said this, objectively, I will continue to look out for opportunities to increase my investments in all three local banks as I believe they will continue to shine.

In fact, with interest rate rising, unless we see a deep and long lasting recession, all three local lenders should shine even brighter.

Recently published:
SBS Transit and ComfortDelgro.
Related post:
Reallocate as interest rate rises.

Reallocate as interest rate rises in a slowing economy.

Interest rate is rising.

PM Lee recently warned of a possible recession in the quarters ahead.

Put rising interest rate and a slowing economy together, we get a rather gloomy picture.

The evil which is inflation is preferred to the evil which is deflation.

Although inflation is the lesser evil, it isn't as benign when it is heightened which is what we are seeing now in the world.

We can reduce inflationary pressure either by increasing supply of goods and services which are in demand or tempering demand for such goods and services.

As it is difficult to increase supply right away, central banks are trying to tame inflation by increasing interest rate in an effort to reduce demand.

Increasing interest rate increases the cost of debt.

Credit is the lifeblood of commerce and most businesses are leveraged to some degree.

If the economy is healthy, businesses can pass on the higher cost of doing business to their customers and higher finance expense that comes from higher interest rates are naturally a part of such cost.

However, it becomes more difficult for many businesses to pass on such higher costs to customers if the economy is suffering from malaise.

Heightened inflation, rapidly increasing interest rates and low economic growth is not a good mix.

In such a situation, even very strong companies will not be spared a slowdown as most entities would be less ready to part with their money.

Already, we see some big name MNCs both in the old and new economies warning of very difficult quarters ahead.

Only the fittest will survive but even they might not emerge unscathed from such a toxic cocktail.

As an investor for income, I believe that businesses which are able and willing to pay a meaningful dividend should be favored.

To make sure that dividends are sustainable, these businesses should also provide necessary goods and services and have stronger balance sheets.

They too will take a few punches during hard times but they should be able to roll with the punches.

I think staying invested is still the way to go but, like I said, I should mostly be invested in businesses which are able and willing to pay dividends even during hard times.

So, with this in mind, I have taken a hard look at my largest investments since they impact the performance of my portfolio the most.

The strategy to increase my investments in DBS, OCBC and UOB during the COVID-19 induced bear market has turned out well and sticking with this strategy makes sense to me especially with interest rate rising.

I am also interested in increasing my investments in ComfortDelgro and CLCT on weakness as they seemed to have lagged in price recovery while their businesses look more attractive to me in recent times but for different reasons.

I am leaning more towards ComfortDelgro which has a stronger balance sheet and also because looking at the numbers which have improved, there is a fairly good chance that future dividends will be higher and could even go back to pre-pandemic levels.

CLCT's plan is to increase the proportion of new economy assets in their portfolio and I foresee more fund raising in the future.

So, I will increase my investment in CLCT slowly and not bulk up in a hurry.

REITs are required to pay out at least 90% of their operating cash flow to investors to enjoy tax benefits and this is a source of comfort to me.

The REITs in my portfolio are rather conservative when it comes to debt and in the case of IREIT Global, some of their rental income is linked to the German consumer price index and higher inflation could see a greater increase in income.

In my list of largest investments, the only entity which did not pay a dividend during the last bear market was Centurion Corporation.

Amongst my largest investments, Centurion Corporation also has the weakest balance sheet apart from Wilmar International.

However, Wilmar International is in the business of food production and distribution which, in my opinion, is recession proof. 

Given their size and market dominance, they should be able to charge higher prices.

Wilmar also has good options available to unlock value for shareholders and they were paying dividends even during the pandemic.

I increased my investment in Centurion Corporation as Singapore decided to live with COVID-19.

For those who are interested in my thoughts on the matter, read:

1Q 2022 passive income.

In an environment of rapidly increasing interest rate and slowing economy, however, with a rather weak balance sheet, it could be harder for Centurion Corporation to bring home the bacon.

In my original blog on why I invested in Centurion Corporation, I crunched some numbers on how rising interest rate could impact Centurion Corporation's interest cover ratio.

For those who are interested, read:

Added Centurion Corp to portfolio.

Of course, if they are able to increase asking price per bed meaningfully to balance the increase in the cost of debt, then, they should be OK.

Although they would be able to do so easily in a healthy economy, it might not be so easy during times of economic malaise.

Wait, didn't Centurion Corporation do quite well even when the economy was unhealthy?

Yes, they did but they didn't have to deal with rapidly increasing interest rates.

I don't know everything and I might be missing a few things here.

So, I have decided to only reduce my exposure to Centurion Corporation and not go to zero.

As my total passive income held up quite well during the two years when Centurion Corporation suspended dividend payouts, I doubt reducing my investment would have any meaningful impact in terms of passive income generation which makes this decision an easier one for me.

Although Centurion Corporation still looks undervalued to me as it trades at a huge discount to NAV, to be honest, this discount could reduce as valuation of their assets could take a hit.

It would be interesting to see how the management navigates the challenges ahead and how they might unlock value for shareholders.

They are trying to sell some assets in the USA now which if successful should help in reducing leverage and unlocking value.

To this end, I believe they should ramp up their effort and sell more assets.

Like Phua Chu Kang said at the onset of the COVID-19 pandemic, "Things different already."

In the grand scheme of things, this is a relatively minor shift of resources but because I am more inactive than active as an investor for income, it might seem like a big event.

Remember, mentally unstable AK is just talking to himself, as usual.

Have a plan, your own plan.

Recently published:
Avoid this in a rising interest rate environment.

Related posts:

1. Rising interest rate flashback... 

2. Largest investments 1Q 2022.

3. Investing with peace of mind.

Should I invest in Far East Hospitality Trust?

My last blog on ComfortDelgro attracted some very thoughtful comments from readers and if you are interested, read them: HERE.

I said in reply to a comment that I have been trying to build a more resilient investment portfolio for a few years by now. 

Most of this effort has been centered on increasing the size of my investment in the local banks.

I believe that I have strengthened my investment portfolio's resilience in the most recent bear market this way.

This short blog is in reply to the latest comment by a reader in the abovementioned blog.

The reader's comment was about Far East Hospitality Trust.

My reply:

Yes, just like SIA and even SIA Engineering, the hospitality sector has been hard hit by the COVID-19 pandemic.

With the latest Omicron variant, it doesn't look like things are going to improve by much anytime soon. 

Buying into hope might be just as painful as buying into hype if things go very wrong. 

I significantly reduced my investment in Ascott REIT-BT some time ago. 

However, I still retain a smallish position and that exposure to the hospitality sector is enough for me. 

Having a larger exposure to the hospitality sector might give outsized returns if the pandemic subsides soon, of course.

As the ongoing COVID-19 pandemic has shown, however, a larger exposure does not make for a more resilient portfolio especially if we are mostly investing for income.

This is especially the case when we are buying into REITs and business trusts which pay out almost all their operating cashflow to their investors. 

This is unlike businesses which pay out a fraction of their earnings as dividends to their investors.

With interest rates more likely to rise than not in future, we might want to invest in businesses that will benefit from rising interest rates instead.

As always, it is never my way or the highway.

Have our own plan and we should keep it grounded with realistic expectations or at least try.

Of course, even the most well thought out plan could go wrong.

If we must gamble, make sure the bet will not sink us financially and degrade our lifestyle if things do not go our way.

AK is just talking to himself and seems to have gone off topic.

Anyway, remember that the COVID-19 virus is still here in all its mutations.

Continue to be cautious and stay safe to keep all of us safe.

Omicron Covid variant spreads 'more than twice as fast' as Delta - BBC News

References: 

1. AA REIT, IREIT Global and Ascott REIT-BT.

2. How to size our more speculative positions?

3. Smart money exiting US hospitality sector?

Higher dividends from DBS, OCBC and UOB.

I was already invested in DBS and OCBC before the last bear market triggered by the COVID-19 pandemic and fully expected them to be important income generators in my portfolio.

Although the local banks are well capitalized and have the ability to maintain their dividends, the Monetary Authority of Singapore (MAS) told them to cap dividends last year at 60% of what they were before.

See:

As the dust started to settle in the last bear market, I added UOB to my investment portfolio, gradually increasing my investments in all three banks.

The buying went on for a few months, started in April and went on till October last year.

I was prepared for a year or two of lower dividends from the local banks and, in fact, in my last two passive income updates, I said that my larger investments in the local banks should deliver decent dividends this year but nothing spectacular.

I had very modest expectations.

Well, good news as this is going to change in the future because the MAS has lifted dividend restrictions.

See:
MAS Lifts Dividend Restrictions

This will have a big impact on my passive income going forward as going back to 100% of what they paid out in the past means a 66% increase in dividends from the local banks.

Since I increased my exposure to the local banks rather substantially in 2020, there should be an even bigger jump in their contribution to my passive income compared to 2019.

Things are looking up.

Hopefully, this is also a sign that the worst is behind us and that the broader economy will do better in the future.

“While some uncertainties remain, Singapore’s economy is expected to continue on its recovery path, given strengthening global demand and progress in our vaccination program...” - MAS

Congratulations to fellow shareholders and good luck to all of us.

Related posts:
1. Buying DBS, OCBC and UOB.

2. 1Q 2021 passive income.

3. 2Q 2021 passive income.

Reference:
Shares of Singapore banks jump after regulator lifts cap on dividend payouts.

"Moody's had changed its outlook on the Singapore banking system from negative to stable in March, in recognition of the improving economy, potential for bank earnings to grow and broadly stable asset quality."

Added on 7 August 2021: "...higher payouts of about 15 cents per share on average."

Wilmar was $7.11 a share and DBS, OCBC and UOB?

This blog is in response to questions by readers, csky and linus.

On Wilmar, DBS, OCBC and UOB:

That price target of $5 for Wilmar which I suggested in November 2019 is outdated as Wilmar's chart pattern was damaged by the price action inflicted by the COVID-19 pandemic.

The chart has morphed since then.

For readers who don't know what we are talking about, see:

Wilmar: Target reacquired.

Wilmar's chart is showing very strong upward momentum right now.

RSI, a momentum oscillator, shows that Wilmar is overbought right now but it could stay overbought for some time.

This is because there isn't any negative divergence in the MACD which is another momentum oscillator.

As the stock price moves higher, the MACD moves higher and this positive momentum suggests price could go higher.

Compared to this, the charts of the three local banks show negative divergence.

Their higher highs in stock prices have been accompanied by lower highs in the MACD.

Softness in the local banks' stock prices is to be expected.

We could see them retreating to test immediate supports.

However, Wilmar's stock price looks like it could go higher.

How much higher?

I don't really do this anymore but I will stick my neck out this time.

You probably remember this blog from 2017:

Accumulating Wilmar on price weakness.

In that blog post, I noted that when Mr. Market was feeling very bullish about Wilmar's prospects (like now), Wilmar's stock traded at a huge premium to its NAV.

It was a really huge premium.

Today, Wilmar's NAV is significantly higher than it was in 2010.

Based on this observation, it is probably not irrational to think that Wilmar's stock price could go higher than $7.11 we saw so many years ago in January 2010.

Having said this, there is nothing wrong with taking profit.

So, selling some to lock in some gains is probably not a bad idea.

Trading around a core position?

Sounds familiar.

Buy more, sell some or hold?

You decide.

I anyhow talking to myself only hor.

Buying DBS, OCBC, UOB and cheering for IREIT Global.

The title of this blog pretty much says it all, doesn't it?

OK, end of blog.

Ouch!

Who threw a shoe at me?

Anyway, I nibbled at DBS, OCBC and UOB earlier in the day.

Why did I nibble at DBS, OCBC and UOB?

Well, fundamentally, we want to buy into stocks with strong balance sheets and which are good dividend payers.

More so during a time of crisis.

So, tell me why didn't AK think of investing in SIA instead?

Hey, AK is mental but not that mental.

Ahem.






If DBS, OCBC and UOB have strong balance sheets and are good dividend payers, why didn't AK buy 2 weeks ago when prices were about 10% lower?

Well, AK is growing older and as he grows older, he becomes more timid.

This is the honest truth.

Basically, I didn't know if stock prices were going to move much lower from there

I was waiting for the dust to settle.

So, has the dust settled now?

I am not sure that the dust has settled but I think the dust is settling.

What do I mean by that?

It means that the bottoming process seems to have started.

I wouldn't say that things are bullish and that everything will be fine and dandy from now.

However, I will say that things are looking less bearish for now.

Prices have risen from the lows formed on 23 March and have been moving sideways for a while.






Today, the stock prices of DBS, OCBC and UOB all broke the resistance provided by their declining 20 days moving averages (20d MA).

What this says to me is that they broke their downtrends.

It doesn't really say anything else to me.

For sure, it isn't saying that stock prices will only go higher from here.

Personally, I feel that there is probably more downside in the weeks or even months to come.

However, Mr. Market doesn't care what I think and how I feel.

So, I just do whatever the plan which I drew out at the start of this crisis tells me to do.

For clues as to what I am talking about, read this blog:

COVID-19 defeated by Mr. Market in 2021 or so...

Remember, have a plan, our own plan and stick to it.

What is acceptable to me might not be so for you and vice versa.

Just remember that I am only talking to myself here in ASSI about my plan or, sometimes, plans.





What is going to happen next?

That is an easy question to answer.

The market will either move higher or move lower.

Yes, I know.

Bad AK! Bad AK!

What does my plan say?

Well, if DBS, OCBC and UOB see their stock prices move higher or just move sideways in the near future, we should see their 20d MA turning up in due course.

A rising 20d MA will provide some support and I would buy more at supports.

Basically, we want to see any retreat in stock prices bouncing off the 20d MA then.

If this is just a relief rally and if DBS, OCBC and UOB should see their stock prices plunging once more, then, we could see the lows of 23 March again.

Indeed, stock prices could go even lower than those lows which would be consistent with the view that the COVID-19 crisis is as bad as the Global Financial Crisis or even worse.

In such an instance, I would have to see a positive divergence formed with a momentum oscillator, the MACD, before buying more.

That is the plan.

Just have to wait and see how things pan out.

Mr. Market cannot be rushed.

Neither am I in a rush.

Stay calm and play Neverwinter!





Before I end this blog, I just want to share a bit of good news with fellow IREIT Global unitholders.

If you don't already know, IREIT Global is seeing a huge spike in its unit price today.

It is up 20% right now as I am typing this!

Now, I wish I had bought a lot more when I did at 42c a unit.

50% capital gain!

If only I had a working crystal ball, right?

"Tikehau Capital raised its stake to 29.2 per cent from 16.64 per cent while CDL increased its stake to 20.87 per cent from 12.52 per cent.

"This brings their aggregate shareholding to over 50 per cent.

"Meanwhile, new investor AT Investments has also acquired a 5.5 per cent stake in the Reit"

Source: The Business Times.
"Tikehau Capital, CDL raise their stakes in IReit Global as strategic partners."




In closing, today is the first day of stricter measures that will last for a whole month to combat COVID-19 in Singapore.

Remember, be socially responsible.

We are #SGUnited.


References:
1. Have a plan, your own plan.
2. COVID-19 defeated already?
3. Largest REIT investments updated.

OCBC 360 updated (and downgraded) again.

Once upon a time, OCBC 360 together with the OCBC Frank credit card, was my favourite combination to get higher interest income on my savings.

I just had to spend $400 with my Frank card and pay 3 bills online and I would get a 2% interest rate on my savings. With no monthly salary to credit into the account, that was the best I could do.




Then, the benefits were revised and suddenly my interest income, everything else remaining the same, halved! 

So, I junked the combo and cancelled the Frank card.

Now, this doesn't mean that the OCBC 360 is not good for others, especially those who have a monthly salary to credit into the account.

However, with the latest revisions, it is probably not as good as before.

The impression I get is that OCBC wants us to save more but is paying us less to do so.

Forget about the "Wealth" and "Save" boxes. "Salary", "Payment" and "Spend" are what most people hit.

So, after the revision, we would receive 1.8% in bonus interest whereas we were receiving 2.2% before.

Of course, the original OCBC 360 would have paid 3.0% for the same 3 conditions!

3.0% to 2.2% to 1.8%.

Alamak and I thought interest rates are rising. I must be growing old and senile.




Of course, for people without a monthly salary to credit, it would have reduced from 2% to 1% to 0.6%. This is after meeting two conditions too. Duh!

Most of my savings is with CIMB Star Saver now because they pay 0.8% up to the first $750K. 

I don't have to use their cards or pay bills online to be paid 0.8%.




If OCBC wants me to save more with them, they should make it easier and more rewarding for me to do so.

Related posts:
1. UOB ONE or OCBC 360 (plus BOC)?
2. My savings accounts and money flow...