Wednesday, December 24, 2014

Best Options for "High" Interest on Liquid Cash

Extra cash from your bonus this year and not sure what to do with it?

Well, if you do opt to make your money work out for you, I have some suggestions that you might want to explore for your risk-free, easy access emergency money!

Getting a good rate of fixed interest on cash is not easy at all with low rates around most developed countries globally. It is even worse if you need this cash to be liquid. That means, pow, within a week you want your cash ready to go!

Don't worry though, GMGH got your back and has done the dirty research. If you are looking for returns better than the bank rate (0.05% lame, booo), here's the best options of what I've dug out.

The OCBC 360 account is beyond amazeballs. So many people have discovered it and are reaping the simple joys of getting very good returns on their cash with this product. The catch? You need to meet conditions to get the full 3.05% interest. The catch of the catch? You don't need to fulfill all the conditions if you can't; just completing the partial list of conditions already allows you to be eligible for partial amounts of interest as well. See my full write-up on the OCBC 360 account for more info.

SCB Bonus Saver isn't too shabby either. 1.88% is still better than pretty much any fixed deposit being offered on the market today, except that like all the products I listed here, your cash in liquid! The catch? You need to spend $500 a month to be eligible for the bonus interest rate. Considering that you will probably be spending your money with OCBC to fulfill their criteria, this might not be an easy condition to fulfill. Unless you regularly spend more than $1,000 a month, you are probably better channelling your spending to OCBC. See my comparison of the SCB Bonus Saver compared to DBS and OCBC.

CIMB Step-Up Fixed Deposit is actually something that I think a lot of people don't know about, but would be glad to know. They offer a 5-year option that credits you interest every 6 months, and a 1-year option that credits you interest every month. Basically, after your cycle of 6 month / 1 month is complete, you can withdraw your amount with no penalty and keep the interest that you have earned so far! So, while it is technically still called a fixed deposit, it behaves very much like a liquid cash instrument. Personally, my research has shown me that unless you plan to keep your deposit amount intact for at least 3 years, picking the 1 year option is better. 1-year "fixed-deposit" at 1.05% per annum, only $10,000 minimum and pretty much unlimited maximum? Sign me up! See my thoughts on the CIMB 5 and 1 Year Step-Up Fixed Deposits.

Finally, the last product on our list is the CIMB StarSaver (Savings) account. Don't underestimate this guy. With just a simple $1,000 initial deposit and an additional $100 top-up to your account every month, you are eligible for 0.8% interest. Feeling lazy? Just set-up a recurring transfer with your bank to send over the $100 every month and forget about this cash! If you don't have your balance increasing, that's okay, you still get 0.5% interest, 10 times more than what the local banks are giving! Of course, this is SDIC insured for $50,000, so you don't need to be scared of Malaysian banks! Considering the other options above, this is ideal for people who cannot meet those more demanding conditions and minimum sums, but still demand decent returns on their cash. This is for you!

Just because you have decided to hold onto cash doesn't mean you need to let the local banks pay you a measly 0.05% interest on it. These are pretty much the most risk-free options that I can think of which gives back a fixed interest.

This my Xmas gift to readers, heh!

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