Monday, May 11, 2015

CIMB Wealthsaver 4.8% pa?



If you read the Sunday Times like I do, you would have seen a similar advertisement. Now, just like how I ripped apart the really lame OCBC Bonus+ Savings Account (which only gives you 0.768% interest pa instead of the 2.35% in big big bold bold words), let's look at this "promotion" by CIMB.


Basically, cutting through all the voodoo magic mumbo jumbo, their promotion that they are offering to customers is a 2% fixed deposit.

Preferred customers get a better 2.5% fixed deposit, but they have to have $250,000 with the bank. Do you have $250,000? Neither do I. Let's move on.

Now how you finally get 2% on your interest is not very important, but if you are keen to find out, I have written about their previous 1-year and 5-year step-up fixed deposits, which have since been discontinued. They do have a new 18-month step-up fixed deposit and I shall be posting about that soon.

However, to qualify for this seemingly good rate of 2%, you need to jump through a few uncomfortable hoops.

Firstly, the minimum deposit sum is $50,000.

Secondly, you need to buy products from the banks. This could be $100,000 worth of unit trusts, a $50,000 single premium insurance policy or a $10,000 regular insurance policy and finally $100,000 of structured deposits.

Personally, I think that the second conditions are all crap. This is somewhat similar to the new OCBC 360 terms, which I think is ridiculous. Buying unit trusts from banks is daylight robbery with the amount of sales charge they are sticking you with. You're better off paying close to nothing with Phillip. Don't even get me started on insurance, that gets me so riled up. It is hard to comment on structured deposits because I do see how they could be favourable if you get a good structure that suits your views and risk profile.

For people with existing relationships with CIMB and are going to fulfill those criteria already independently, then it is no harm to get a nice juicy 2% fixed deposit with any excess cash.

But for most normal people, the bottom line is that most will not qualify for this promotion and should not try. It isn't really that attractive.

2 comments:

  1. Banks can suck dick!

    ReplyDelete
    Replies
    1. Hey anon, I wish they did. At least we would get something in return for letting our deposits get f***ed, haha!

      Delete

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