How to meet 2 requirements with 1 act for OCBC 360?

A conversation with a regular reader of my blog:

Hi AK,

How's it going for you AK?

This is in regards to the OCBC 360 account and in particular to the criteria of generating an additional 0.5% interest amid the payment of 3 unique bills in a calendar month. 

I am wondering do you know that the topping up of our CPF-SA is considered a bill payment because I was so amazed when i discovered it.

My excitement behind this is that most bill payments are expenses and the topping up of our CPF-SA is not an expense at least in my opinion, considering that it is our own money at the end of the day.

In addition, for the younger ones who do not own a house and have minimum bills to pay yet (no utilities or mortgage), clocking three unique bills in a month may be a challenge. 

The discovery of this means that a single person like myself can essentially use a combination of monthly CPF-SA top up, credit card bill payment and mobile phone plan to qualify for the 0.5% additional interest!

What's even sweeter is that, other forms of mandatory payments can be soaked into my credit card component where an individual is required to incur a $500 monthy expenditure through an OCBC credit card in order to qualify for the separate 0.5% additional interest.

1% additional interest could never have been easier!

Warmest Regards,

P

AK asked for some clarification as his ageing brain couldn't keep up with the excitement:

Hi P,

I would like to share your discoveries in my blog very much. LOL.

I didn't know that topping up of the CPF-SA is considered a bill payment.

What "other forms of mandatory payments can be soaked into my credit card component"? Could you provide some examples?

Best wishes,
AK

P readily obliged:

Hi AK,

Yea for sure!

There is a very big list of organisations here, http://ocbc.com/personal-banking/help-and-support/payments-billing-organizations.html?#billing-organisations

Maybe using the word like "mandatory" may not be the most appropriate word, I think a better one would be "common". 

1) I paid a household utility bill which amounted to $50 in May with my Ocbc credit card (that's 1 out of 3 bills clocked to qualify for that 0.5% additional interest rate )

2) the same 50 dollars will also be counted as an expenditure on my Ocbc credit card since I used the card to pay for it. ( that's 50 out of 500 dollars of expenditure "soaked" into my credit card to qualify for the other 0.5% interest rate)

So my example previously was that for a single person who may not or has yet to own a property, may encounter difficulties when finding for 3 unique bills to pay. In this case, he or she may top up his cpf account and choose the option to pay via billing an Ocbc credit card to qualify for the additional interests. I like this option a lot because topping up our cpf is our money at the very end of the day isn't it?

I'm not sure would you find this useful since ur sa is probably maxed out, but for someone like me since I'm single, I think this is one of the very useful discoveries I have made for myself to qualify for higher interest rates on a savings account.

B,
P

If you have an OCBC 360 account, I think P has shared some pretty amazing stuff. :)

Related posts:
1. Attain financial freedom sooner.
2. Do the right things and transform our lives.
3. UOB ONE Account or OCBC 360 Account?

A chat on FDs, SSBs, OCBC 360 and CPF Top Ups.

Solace is a regular guest blogger here at ASSI and he has shared generously, without any agenda, his thoughts on personal finance and investment matters. He is sharing with us a conversation he had with a friend recently:

I had a conversation with a friend recently about FD, Singapore Saving Bonds (SSB), OCBC 360 and CPF.

Friend: u know hor, now got SSB, very good, very stupid to put money in FD.

Me: if u aim 10yrs, then it is better than FD, but if gt saving targets of 1-4 yrs, yearly renewal in FD for 1.X% is higher.

Friend: Then like that, isn't OCBC 360 better than FD. But I think I looking for long term risk free like 10 yrs.

Me: ocbc 360 can be better than FD only if u meet all their criteria plus they could change their terms and conditions anytime. since u want to look at risk free rate for long term time frame, why not consider your CPF SA risk free rate 4%?

Friend: erm, I don't trust or like CPF system, I might not even get my money back. I think Singapore bonds more "Reliable" than CPF

 

Me (internal thoughts): wah Lao aey, Singapore bonds more reliable than CPF? CPF is used mainly to buy govt bonds. Their nature is the same......

 

I gave up without speaking further. Cos need to spend too much time to explain further. Plus my friend might not listen to it as I sense that he is fixed in his views......

We need to do a very common sense when treating topping up SA

U know ppl in their 30s and 40s easily earn mid 4 figure pay. I am sure they hit the 7% tax bracket one of the year. U know what I talking abt right.

A 7% tax saving and a 4% interest, combine together, isn't it like 11% return in a year!

Sth we can't even get in equities market!

Or I shld say, majority cannot achieve 11% return in a yr....

Count it as my short version of guest blog haha

This is my version of "common sense investing" LOL

"Starting 2016, members 55 and above will enjoy an additional 1% extra interest on the first $30,000 of their combined balances. This is on top of the current 1% extra interest earned on the first $60,000 of their combined balances." CPF Board.

It seems that many more CPF members are warming up to the idea of topping up their CPF-SA and RA. This, I believe, is a good thing.

We should make full use of the CPF and make it a cornerstone in our plan for retirement adequacy. It is, quite simply, the sensible thing to do.

In investments, we go for low hanging fruits first. Why should it be different when it comes to planning for retirement adequacy?

Some blog posts in which CPF-SA was discussed:
1. Do you want to be richer? (2010)
2. Build a bigger retirement fund with CPF-SA. (2012)
3. Don't see money, won't spend money. (2013)
4. Upsize $100K to $225K in 20 years. (2014)
5. AK reveals his CPF-SA numbers. (2015)

Related posts:
1. Singapore Savings Bonds: Good or not?
2. Why fixed deposits over structured deposits?
3. UOB ONE Account or OCBC 360 Account?

Get ready for investment with Solace: here.