Investment options

[Jon-san]

just like to add my 2 cents worth here as well. not a marketing ploy or anything and yes, i don't work in this bank... most of my funds are parked in CIMB's Starsaver acct. At the point of application, the bank was paying out an annual interest rate of 1.0%/annum if you can maintain at least a $500 deposit into the account monthly, or if you deposit an annual amount, that it amounts to the same $500/month annualized (i.e $6k per year)... although the interest rates have since been moderated for early-bird account holders to 0.9% and 0.8% for new acct holders, i find it's still alot better than parking it in any of our other local banks, which pay a measly 0.125%. the funds are liquid and can be withdrawn at any time, thru a chequebook, and most importantly, the principal is guaranteed by the government of singapore. you can prob read more about it on their website, then make your own informed decision. just another option if you don't want to risk the monies in funds and other stuff.

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oh, and i agree with kazukirai about there being no safe reits. esp after reading all the dissection about reits and their business models on this same website....

[Musicwhiz]

Thank you Jon-San for the tip, I will read up on this CIMB Bank's account.

[ssian]

The Starsaver looks very attractive to me since i park all my money into POSB savings
Thanks

Errr Jon-san, are you able to provide abit more details to it ?
It says initial opening is $5k, then subsequently lets say i am able to put $500/mth into it,
it does have the 0.8% interest as stated on the $500 i put in or is it with the initial deposit sum of $5k with it ?

[Musicwhiz]

I just went down to CIMB Bank @ Raffles Place to enquire on the Starsaver account. I took a brochure and also spoke to a customer service officer to understand it more.

Here are the salient details:-

1) Account must have at least $5,000 to earn interest. Once balance drops below S$5,000 there is no interest accrued (daily) but then again there is also no "fee" unlike other accounts. Interest is accrued daily and compounded monthly. Minimum account opening period is 6 months, or there will be a penalty of S$50 for early closure.

2) For first deposit, advisable to put in S$5,500 so you can immediately enjoy the higher rate of 0.8% per annum (yes it came down from 1% previously). Subsequently, you only need to top up at least S$500 a month to continue to enjoy the rate on your ENTIRE savings (and not just the incremental portion).

3) If you put in less than $500, the interest rate will revert to 0.5% per annum which is still higher than May Bank's iSavvy's 0.4% (+6% interest on interest every 6 months) for amounts >$50,000.

4) The bank will split up amounts >$500 into blocks of $500 so that you continue to enjoy the preferential rate of 0.8% per annum. So if you put in $1,000 the bank will assume you put in $500 for 2 months and let you enjoy the rate for 2 months. During the 3rd month you must place $500 or more again to continue to enjoy the rate.

5) This account is a savings cum current account and comes with a free cheque book.

6) It is an account with statements, so it is not purely internet banking only. (Makes me wonder how they can offer such rates!)

This account fulfills my requirements for an account which holds opportunity and emergency funds. I will be opening an account with CIMB to transfer all my monies there soon.

P.S. - Only problem is the lack of branches and ATMs. There are only 2 branches in Singapore @ Raffles Place and Knightsbridge currently. But if you operate the account through internet bank transfers, it should not be an issue.

Hope this helps.

[Bibi]

Cimb Malaysian bank le. 20k ok la, but anything more I still prefer local.

[Zelphon]

Malaysian banks offers much higher rates than local banks...

Even their CPF rate is also way higher than ours...

Perhaps that's because they are still considered a developing country whereas our money parked in local banks has been funneled for use for various purposes of the Singapore Inc.

For god sake, even our CPF rate is below inflation rate...

How will Singaporeans ever retire???

[yeokiwi]

If you know what the malaysia EPF(Singapore CPF equivalent) is investing with their members' $$$, I don't think you want to put your money in.
http://www.kwsp.gov.my/index.php?ch=p2in...ty&ac=3373

Besides equity, the fund is also invested in loans and bonds.

It is machiam playing fire with retirement money.

[pianist]

i parked my ringgit 6-mth fixed deposit with UOB malaysia fetching me about 2.7% per annum...see how it goes..

[mrEngineer]

I just went down to CIMB Bank @ Raffles Place to enquire on the Starsaver account. I took a brochure and also spoke to a customer service officer to understand it more.

Here are the salient details:-

1) Account must have at least $5,000 to earn interest. Once balance drops below S$5,000 there is no interest accrued (daily) but then again there is also no "fee" unlike other accounts. Interest is accrued daily and compounded monthly. Minimum account opening period is 6 months, or there will be a penalty of S$50 for early closure.

2) For first deposit, advisable to put in S$5,500 so you can immediately enjoy the higher rate of 0.8% per annum (yes it came down from 1% previously). Subsequently, you only need to top up at least S$500 a month to continue to enjoy the rate on your ENTIRE savings (and not just the incremental portion).

3) If you put in less than $500, the interest rate will revert to 0.5% per annum which is still higher than May Bank's iSavvy's 0.4% (+6% interest on interest every 6 months) for amounts >$50,000.

4) The bank will split up amounts >$500 into blocks of $500 so that you continue to enjoy the preferential rate of 0.8% per annum. So if you put in $1,000 the bank will assume you put in $500 for 2 months and let you enjoy the rate for 2 months. During the 3rd month you must place $500 or more again to continue to enjoy the rate.

5) This account is a savings cum current account and comes with a free cheque book.

6) It is an account with statements, so it is not purely internet banking only. (Makes me wonder how they can offer such rates!)

This account fulfills my requirements for an account which holds opportunity and emergency funds. I will be opening an account with CIMB to transfer all my monies there soon.

P.S. - Only problem is the lack of branches and ATMs. There are only 2 branches in Singapore @ Raffles Place and Knightsbridge currently. But if you operate the account through internet bank transfers, it should not be an issue.

Hope this helps.

Hi MW,

Have you applied for this Starsaver account? I wonder do they have EPS function at their atms to purchase shares?

Also do you happen to know whats their daily transfer limit? Is it by default $5k like the other banks?

There are 4 ATMS located in Singapore. Other than the 2 branches, where are there other 2?

Is it also insured maximum of 20k for individuals as well?

Thanks!

[koh_52]

Hehe, dat uncle ans on behalf:

Have you applied for this Starsaver account? I wonder do they have EPS function at their atms to purchase shares? No

Also do you happen to know whats their daily transfer limit? Is it by default $5k like the other banks? 10k

There are 4 ATMS located in Singapore. Other than the 2 branches, where are there other 2? 1 at Raffles Place, 1 at Seleigie , the other 2 I dunno?

Is it also insured maximum of 20k for individuals as well? Yes, effective 1 Jan'2011 increased to 50k

* Interest rate = 0.8% p.a., if u have 250k the interest per mth is $184.76