Tuesday, January 5, 2016

2016 New Year FD Rates

Just visited some of the different bank websites to do my ibanking and noticed that some of the fixed deposits have been updated and they are looking for new customers.

Many of them are only valid for a short while, so if it perks you up, why not?


Based on the "standard" that people like to compare, which is a 12 month lock in and about $20-25k initial minimum, the best looking bank is Stan Chart which pulls away from CIMB by a hair of 0.05% more returns, but for $5k more minimum initial deposit.

For quickies, we once again see a fight between Stan Chart and CIMB. More minimum initial and a shorter tenure for the highest 1.65% rate, or drag it out by 1 more month but have the minimum required drop to only $25k.

For those people with $100k looking to park somewhere, CIMB comes up top in this regard, with some free abalone to boot.

Of course, if all of these have too high minimum deposit (which I am sure is too high for many), we can always just fall back and make use of the Singapore Savings Bond. The info for the next issue is out, and we're looking at a flat 1% for the first year, which is better than what the local banks offer for your cash, but with a fraction of the capital required at only $500.

Personally, I think the CIMB FastSaver with a simple 1% interest (it is a cash savings account, not even a fixed deposit!!!) for the first $50k is the way to go until you have about $5-10k to spare, then you can consider an SSB with that amount. Once you've hit the $20-25k golden threshold, you can start cherry picking your fixed deposits. Like I said before, CIMB is a pretty consistent attractive FD offerer, which is one of the reasons why I bank with them.

Personally, as far as cash is concerned for me, I am milking my OCBC 360 for all it is worth, while I have some cash in CIMB accounts and also some in the SSBs.

I know holding onto too much cash and not "investing" is a terribly bad idea for a long run, but for now, it doesn't seem like a bad idea to me.

2 comments:

  1. Have you considered the Bank of China Multi-Currency Savings account for its SmartSaver feature? Earn interest up to 3.55% p.a. (http://www.bankofchina.com/sg/pbservice/pb1/201510/t20151023_5857863.html)

    ReplyDelete
    Replies
    1. Hi Linus,

      Yeah, I have come across this BOC product and it looks pretty great! The problem is that I am already committed to spending $500 a month on my OCBC cards already.

      It is definitely worth it for people who have spare spending to move about from card to card.

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