Sunday, May 4, 2014

Housekeeping my Personal Finances

Since I've opened up my OCBC 360 account and have decided to award them with my patronage, I have been engaging in the slow slow migration of my account from DBS to OCBC.

It's really not as simple as just transferring money over my FAST or GIRO until I've balanced the accounts to my ideal allocation of cash. There are also other considerations to take into, such as the current linkages that my account has to other organizations.

For example, my standing GIRO instructions that I had with my income tax and insurance has to be re-applied to go to my OCBC looking for payments instead of DBS. However, I have to make sure that the linkage is properly set-up and the amount can be correctly deducted smoothly, or else I will lapse a payment and will need to pay by cheque or some other method with a lot of hassle.

I've already applied for my income tax to be directed to OCBC, and I will be sending out my GIRO letter to my insurance with the new instructions to make monthly deductions. Hopefully these 2 transactions will be set up smoothly soon. I am hoping by June 2014 to be eligible for the maximum 3.05% interest rate offered by the OCBC 360 account by finally fulfilling the 3 bill payments of that month.

Other considerations are creating the payee lists that I have in my DBS account to also apply to my other accounts in OCBC and SCB. Since most of my funds will be in OCBC trying to maximize on the 3.05% promotional interest, any immediate payments of any large sum of money would also likely to be withdrawn from my OCBC account. I have set up the main payee list that I constantly transact with now, and I have not included the rest because they do not seem to be active anymore.

Next, we have accounts that are directly pointing to my DBS account. There are a few. I have my military salary that credits into my DBS account. I also have my CMC CFD account linked to that particular DBS account for fund withdrawal. Finally, I have my Phillip's POEMs account also linked to DBS for withdrawal and EPS.

Therefore, before I can close out my DBS account and streamline my cash bases, I still have quite a few things to do:

1) Submit GIRO form for insurance
2) Submit e-statement to CMC
3) e-Self Update for military pay
4) Terminate EPS link of Phillip with DBS
5) Establish EPS link of Phillip with OCBC
6) Go down to DBS branch to close account
7) Fill out W8-BEN form to be ready to trade the US markets

There's actually still quite a lot of things for me to do to streamline my finances! On the bright side, once I get all this groundwork done now, I will probably not spend anymore time in the future on these processes anymore, since they are already in place!

When you want to close a bank account in the future, remember it's not just as simple as moving all your money from that account to another one! Certain organizations will only recognize your payments from that bank account number, and also certain organizations will only make payments to that account number. So before terminating the account, it might be better to already re-direct those payments/receipts to the new account and have at least a successful transaction before acting out too rash!

A truly boring post about my mundane personal finances. I wish I could be ranting more about the markets and investment views, but hey, these are all actual layman problems and processes that we all go through, eh?

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