Monday, January 26, 2015

Deposit War Started by POSB 2.05% p.a.

Wow! POSB did not advertise the latest promotion of 1.88% pa, only quietly email to customers on Saturday (Jan 24) afternoon. Is it already too late to get the $88 Hongbao for participating in this promo, only first 10,000 qualified customers get it.  Hmmm... would all these have gone to themselves already on Jan 23, start of promo?

Even if u are not the first 10k qualified customers, you can still guarantee yourself more than $88 Hongbao if u join this promo with at least $64k of deposit. You only need to deposit the fresh funds by Feb 28 2015 but POSB pays you interest from Feb 1 2015 to Jan 31 2016 (12mths), ie you get one month of free interest/money for Feb 2015 ($64k*1.88%/365*27 days=$89), that's your Hongbao! The more you deposit, the bigger your Hongbao! As you get 12mths of interest for just locking in your money for 11mths, the effective interest rate is 2.05%!   Wow!

Wow! I'll be earning 3.23% p.a. Interest in Feb 2015 for keeping my money in my current bank account which pays 1.35% p.a. (now, might be higher in Feb 2015) while POSB pays me 1.88% p.a. for Feb 2015 if I register and deposit money into POSB on Feb 28 2015. Hahaha.

But I will not be putting all my money into this POSB basket come Feb 28 2015. The Deposit War just started, so I'm expecting other banks to be in the battle soon. OCBC also started by offering customers 2.35% pa for one month in their Bonus+ Savings Account promo, the effective interest rate is only 1.18% pa per quarter. So I'm moving most of my funds into this Bonus+ Savings Account in March 2015 to earn 2.35%pa for March 2015.

OCBC 360 account pays up to 3.05% pa for max 50k savings, without salary I only get 2.05%pa on a monthly basis.

Now I'm hoping SCB will increase the Esaver Interest Rate next month when the current promo ends on Jan 31 2015!

Are you joining this Deposit War Game to maximise your returns?

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