Wednesday, September 24, 2014

POSB Invest Saver 3.0: Coming Soon?

I previously wrote quite a detailed review on my thoughts about the POSB Invest Saver product from POSB/DBS, and before that I also wrote about a cross comparison of the 3 RSP plans offered by POSB, OCBC and Phillip.

So in my previous post, I summarized the product and highlighted some of the cons that I feel about the POSB Invest Saver product:


POSB Invest Saver is now the CLEAR winner in this RSP War.

- Easy to start (log into iBanking)
- Only 2 choices, but good choices and makes for easier decision making
- Ability to redeem partial amount of holdings
- Ease of changing monthly amount (just log into iBanking)

- Highest transaction charges of the 3 RSP providers
- Inability to choose investment date or frequency
- Investment amount is in $100 chunks
- Inability to choose dividends to be reinvested 
- Inability to add one-off capital injections (when you strike a windfall or get bonus)

I also did say that, "I have emailed them suggesting the last 3 changes though. If they do, I can honestly say that their product would be the best in the market.". 

Well, some interesting news! Last evening when I was on the way home on the MRT, I got a call on my phone. After I picked up the call, the first thought that ran through my mind was, "Oh no, someone from a bank calling me about some fishy product!"

It turns out that it was DBS contacting me about the follow up of my suggestions that I emailed them about!

I was informed by the nice lady on the other end of the line that my first 2 suggestion of dividends to be reinvested and the possibility to invest in less chunky blocks of $100 have been sent to the team in charge of the POSB Invest Saver product and they have taken down these ideas for consideration!

However, I was told that my last suggestion to have a one-off capital injection without changing the monthly GIRO plan would not be considered. They suggested instead to go onto the stock market and purchase lots from the SGX. LOL?

Well, if they really want to give away business of their brokerage services to SCB and grow the ETF AUM of the SPDR instead of their own Nikko AM, what can I say, right? (SCB will reign supreme once the SGX board lots drop to 100, and the SPDR will kill the Nikko AM STI ETF because it has much better liquidity and lower expenses) I did try explaining to her why it would be beneficial for them, but I don't really think that she understood me. Either that or she didn't really want to follow up and just wants to close this case. Haha, oh well.

So anyway, if it the future we get the options to reinvest dividends and to choose monthly giro amounts of smaller than $100 chunks, remember it might be because of your friendly neighbourhood personal finance blogger has a lot of free time and like to email people suggestions! Haha!


  1. Wow they actually called back! But it's funny how they asked to go SGX and purchase..... I used POSB Invest Saver 1.0 before, didn't really like the lump sum capital injection of at least $1k before being able to invest $100 monthly.

  2. Hi GMGH,

    Is the "cheapest" way to buy the NIKKO AM STI ETF through Philip Capital?

    1. Hi Anon,

      Phillip is the cheapest if you are thinking of a monthly RSP plan over $3333.33 a month, so transaction costs will be at the minimum of 0.2%.

      However, going without an RSP and through a broker has cheaper options. CIMB is offering 0.12% promo rate while DBS long has only 0.18% for cash upfront trades. Do note that a trade has to be over $10,000 to ensure that you are paying the absolute minimum commission. SCB has a more realistic charge of about 0.25% after considering related fees and charges.

    2. Hi MH,

      which option did you take to buy this fund?

    3. Hi Anon,

      I have not started any RSP plans yet, although if I do, I would go with POSB Invest-Saver.

      However, if I were to look for exposure with an STI ETF, I would purchase lots on the SGX itself through my broker, SCB. I would like to wait until next year when the lot size for the SPDR STI ETF is reduced from 1000 to 100, because I think that it is the better ETF compared to the Nikko AM STI ETF.

  3. hi, i think the posb reinvest of dividend is workable now. I apply for it through the ibanking platform. Not sure if it is approved or not. anyone wanna verify it? Thanks.

    1. Hi! May I know how did you apply to reinvest the dividends? Is there an option to reinvest the dividends back?


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