Category: Personal Finance Series

Retirement Series (Part 2)

On By RistrettzIn New Ideas, Personal Finance SeriesLeave a comment

My part 2 version came a year and a half late. My apologies really.

In the previous discussion, I discussed about retirement. In the past, it was a buzzword only for people in their 40s or 50s. That is quite normal I would say. Given the financial literacy and knowledge of Generation X. Not many people make an effort to think about the future. I would say that partly it is due to the conditions of the past and education. Fast forward 30 years, the trend is gradually changing. The young are concerned about their futures and the future of their younger ones. An additional factor is that personal finance and financial literacy are increasing among the young.

Including myself, I love my kids and I want the world to be in a better place than it was when I am no longer around. It depends on which stage everyone is in. Some people have more resources while others have lesser. However, that does not make you any less by starting out early. Even if you are late to the game, making the start of this means that you are already on your way to some form of freedom.

There are so many investment tools out there in the market to put your money in and it’s a matter of understanding the risks and taking the right risks to grow your money. Of course, the basic step is to spruce up an emergency fund first. You cannot confuse your pot to be of multiple use. Different funds that you raise have to be for a different purpose. If you have fewer resources, then focus on the things that will give you the confidence such as building a pot of emergency funds. For example, 9 months’ worth of extras. Do not undermine the power of achieving milestones because the small effort often counts for bigger things to come.

Once your basics are covered. We have to think about the next step of risk – This is the part where I term it as risk transfer. This is short is coined as Buy an insurance. The basics are buying your personal health insurance and protection against illness, treatment, sudden medical conditions as well as other unforeseen circumstances. Life itself is uncertain and as time goes by, it will be more prevalent. Getting insurance is never enough but there are many ways to kick-start that. It also involves a bit of planning.

I’m no financial expert. All I know is you probably should find out more to convince yourself that you need to risk transferring your future.

a. Health Insurance

b. Whole Life Plans with TPD or Term Life Plans or Hybrid Plans

c. Critical Illness

d. Early Payout Critical Illness

e. Disability Income or Elder Shield Enhance

I’ll say start working with the Health portion followed by Death or permanent disability coverage. Because if you are gone, your potential future earnings are gone and your dependants depend on them. Once you have covered yourself, then start thinking about the rest. Baby steps. This works well if you are still young.

Things like Mindef or MHA term insurance coverage or SNACK Income microinsurance work well to supplement this insurance at a low cost. That’s something most advisors probably would not share with you.

That’s probably enough information for Part 2. We should talk more about insurance in Part 3.

Disclaimer

If you like what you are seeing, do remember to check them out and do your diligence. There is no one-size-fits-all investment strategy and no one solution to life. Join my telegram group to find out more about deals and join in the community to connect for ideas: Life Journey Telegram

If you like what I am sharing or if it resonates with you, do use my referral codes here at Referral Services

SNACK by Income – Microinsurance for the public

On By RistrettzIn Deals, New Ideas, Personal Finance SeriesLeave a comment

Revisiting a tech online portal that Income has developed over the years. It is not a great app since it wasn’t developed fully in my opinion but it does dole out a nice reward over time. It also helps to supplement whatever insurance that I currently have as a risk transfer.

Why Insurance?

Let’s face it. Everyone needs to transfer their risk and that is a fact. Whether it is a term or a whole life plan, is up for debate but no best answer. You need health insurance, life insurance, disability insurance, travel insurance, car insurance, and the list goes on. The challenge to DIY stuff is that although it comes cheap you have to figure out how to do that on your own. Nothing wrong with that but it comes in as a pain when you don’t have time to manage those stuff.

Try Microinsurance

Personally, I feel that it is fine to try out a cheaper alternative to insurance just to get yourself covered at the lowest cost possible. SNACK is by Income and they did not have this concept of microinsurance. I find it appealing personally coming from someone who understands how these things work. It kind of supplements what I have existing.

At least they try to speak the millennial language. Next, I find that with such low-cost products – There will be fewer barriers to entry. The difficulty in this solution is to educate people. It is much easier to say that it is complicated than trying to find out what this is all about.

Once you sign up online and register the amount you can commit daily, every document will be sent to you via email or digitally. Quite simple.

 

There are 4 ways you can choose to buy insurance (Choose 1 or whatever you need but the auto-invest is the one that gives out e-CapitaVouchers):

a. Critical Illness

b. Personal Accident

c. Life Insurance.

d. Investments – There is a new weekly limit for the RSP style on the Asian Income Fund. There’s only one fund and I also believe the NAV versus the Sell (Also known as bid price) will be different from the Buy (Ask price) That’s something I don’t quite like about insurance firms. They need to do away with this (With the fact that they tell customers there’s no front-end or back-end loading). This itself is the spread.

Recently, there’s been a monthly mission and a single top-up mission that one has to invest and hold for a month before the team releases e-CapitaVouchers via email on fulfillment. It’s not too bad and ranges from a cashback of approximately 5-8% depending on the investment amount.

The cons is that the system is not great. You can’t do partial withdrawal, there is only one Asian Income Fund, and it comes with a buy-sell spread (Fees and management fees from the fund). Also, the max investment is $1000 weekly so there’s a bit of micro-management and exploring how bad the app is to figure out how to not tweak the limits any period as the change actually reset the period.

Missions also are limited to 28-29 days – so if you miss a day, you miss out on the big prize. The challenge prizes have also been reduced over time but that is expected.

Be careful since it is still an investment but no harm in trying after exploring and figuring it out.

You can also trigger these daily costs from a few parts:

a.  Redeeming deals or paying for meals using a VISA card.

b. Commuting by bus, train, or cab and paying for it using a VISA card.

c. Through retailing and purchases using a linked VISA card.

d. Shopping for groceries using a linked VISA card.

e. Through entertainment and paying using a linked VISA card.

f. Topping up petrol and paying using a linked VISA card.

g. Pay your utilities and pay using a linked VISA card.

h. Activate your Fitbit app and fulfill your daily steps.

You may be thinking what happens if you hit every objective. There is a limit to the premiums charged to your credit or debit card depending on the weekly cap you’ve set up. Once you’ve hit this weekly cap, SNACK will no longer charge you premiums when you complete lifestyle triggers and you will not be issued any more policies for that week.

The minimum amount daily you can set is $0.30 and you can add on as many triggers as you wish.

There is also a cap on each insurance segment:

a. For Personal Accidents, the cap is at $100,000

b. For Life Insurance, the cap is at $200,000

c. For Critical Illness, the cap is at $200,000

These insurance are known as non-participating policies so the moment you stop paying for these, the coverage will stop. To me, it is a stop-gap kind of coverage and at an extremely low cost. If you are looking at the full suite, take time to understand and learn. You will definitely benefit from the knowledge and to suss out your new insurance agent. Whether they are in it for the long term or to hit and run. We will never know unless we experience and have the basic knowledge.

Disclaimer

This is not a sponsored post. This is purely my own opinion after using their service and/or products. If you like what you are seeing, do remember to check them out and do your diligence. There is no one-size-fits-all investment strategy or general rule for your every life. Join my telegram group to find out more about deals and join in the community to connect for ideas: Life Journey Telegram

If you like what I am sharing or if it resonates with you, do use my referral codes here at Referral Services

The pictures were taken from the SNACK website for this article. If you need a referral code, please use my referral code “PAU4055” to sign up at https://www.snackbyincome.sg/ to find out more.

New Year, New Start in 2024

On By RistrettzIn Deals, Finance, Personal Finance Series, Psychology, Random, Wealth & HealthLeave a comment

Before we start on anything for 2024. I would first apologize for disappearing for a full year. I was fully focused on getting my career on track to only lead to a single result. The end result is actually disappointment, anger, and fear. I ask for peace and hence over it. I am keen on moving forward and this is actually good for me.

Everyone is different

My situation can be similar or different from many others. One can choose to focus on the negative aspects or the positives. This year, I will try my best to constantly blog more, and provide more deals, promotions, and thoughts about stuff. Provide more referral sources to find out about life hacks and travel more.

Doesn’t this picture make you happy?

We keep looking into blogs, about deals, life, investments, about promotions. It all begins with one thing, you need to have the basic necessities of life. Food, drinks, bills that you pay. If a certain segment does not fit where you are heading or takes some time to reach, just ignore it and focus on your current situation.

Work on it until you have built your emergency funds up. Inflation today has dropped but it is not a joke, prices will not drop even if there is a deflation (Unlikely so) However, I do personally think that interest rates might just drop drastically – This has already been priced in in the most recent treasury bills and SSB. Personal Finance consists of many parts, some choose to focus on P&L while others focus on finding great deals.

What is Personal Finance to you?

For me, personal finance is a game of psychology. It is how one deals with another person’s boasts or proof of what works for them. I do not see red over others and I actually would celebrate their achievement. My only gripe is that everyone is different and one does know another’s situation. So, my ask here of you if you are humbly reading my posts is that. If you have excess cash, good for you, you can seek better and more deals. If you are of a humble background, a fresh graduate, or someone in a situation.

Don’t fret. Many people are in the same situation – You just need to be aware of the situation you are in. Drop the “I’m unlucky, I’m old, I’ve to restart” stigma. Age is just a number and your situation is only temporary. However, if you continue your rut and continue to be unhappy then I can only say that you’ll take a longer period to get out. You will eventually.

Take care of my readers (My LJs). Time will heal and recover. Meanwhile, it is back to my store store and referral time!

Disclaimer

If you like what I am sharing or if it resonates with you, do use my referral codes for other services at Referral and Recommendations

These pictures were taken off the website. I thank you in advance for keeping my lights on on my humble blog.

Being Micro (Understanding your Portfolio)

On By RistrettzIn Deals, Finance, Personal Finance Series, Promotion, Random, Wealth & HealthLeave a comment

When discussing the portfolio of Financial Planning, it is common to waive it off if you have no interest in it or talk about investments only. Like any broken recorder, the basis of Finance Literacy is fundamental however you dislike it.

Let me put it on a storyboard – As a child or if you have a child, you would want them to learn skills from a young age. (NO! I am not talking about enrichment). Here I am talking about pure survival skills like swimming, psychomotor skills, being literate, learning to drive when you are older, learning simple skills like dealing with disappointment, etc.

Similarly, financial planning is no exception to life skills. Imagining a pyramid, the top layer is not investments but insurance. Meaning risk transfer. Now, skip the boring part of insurance planning. There are a few alternatives to cheaper insurance coverage.

One of them is actually SNACK by Income. Yes, Income Insurance.

Don’t miss out now because there’s a good deal going on at the moment.

The Promotion

Here’s $50 for you to start your investment journey!

All you need to do is:
1. Download the SNACK by Income app (https://income.sg/dl-snack)
2. Enter my referral code “PAU4055” and tap on SIGN UP
3. Complete your SNACK account creation with MyInfo
4. Start SNACK Investment and ensure that you have boosted Investment! (Refer to steps 1-4 here: https://income.sg/si-start)

Get your complimentary $50 investment credits in your portfolio the following week!

Technically, it can be termed as an ILP (Investment Linked Plan) and honestly I am not a big fan of it. But you can exclude the investment option if you don’t wish to. However, for a start, you probably should do the investment portion until you get the signup rewards.

The Limit

I use the personal accident, critical illness and life insurance portion to supplement my current insurance. In any case, there is a maximum that one can be insured and it starts from $0

Life – $200,000 coverage

Accident – $ 100,000 coverage

Critical Illness – $200,000

How it Works

How this micro insurance work is that:

  1. You need to set your lifestyle activities for different classes of insurance coverage and investment (if any). For each activity that is fulfilled, a new policy will be created and added to your total coverage. In this step, you can also set a daily cap so that you don’t spend more than $0.30 (for example) per day.
    • Food & Drinks
    • Transport
    • Retail
    • Groceries
    • Entertainment
    • Utilities
    • Petrol
    • Steps
  2. Then you set your activity source. These are the ones that measure your activities such as step or visa credit card if you spend on certain categories.
    • Apple Health
    • Burpple
    • EZ-link
    • Fitbit
    • Garmin
    • Visa
  3. Then set your weekly cap – This is for the investment cap. Up to one to decide
    • You will need to have your investment objective assessed such as CKA – Customer Knowledge Assessment
    • Risk Profile.

There you go and your SNACK account will be set up for you. That said, you can redeem the fund units anytime and can stop using the insurance app anytime you want.

I get that it takes a while to get used to it but you need some time to get used to it as it is pretty automated.

If there are some brands which interest you, you can also spend and get additional coverage from them as well. Once in a while, they will run some promotional campaigns and you can get additional investment credits. So far, luck has been on my side, I have collected more than a couple of hundred in investment funds terms. Like any insurance, this is pretty efficient for an ILP since I investment directly into a fund I am comfortable with.

Disclaimer

If you decide to sign up with SNACK, do remember to use my referral code: https://income.sg/dl-snack and my referral code PAU4055.

If you like what I am sharing or if it resonates with you, do use my referral codes for other services at Referral and Recommendations

These pictures were taken off the Endowus website for reference.

Endowus Performance Review – Dec 2022

On By RistrettzIn Performance, Personal Finance Series, Robo AdvisorsLeave a comment

The time has come for the December review. I have changed the way I present as a totality. For example, my cash solutions, ESG, Pimco Income Funds, Dimension funds, CPF Funds and S&P 500 funds. To date it is still down overall but again because I am with a robo-advisor, I don’t expect to take any action on this.

Thank you to those who have used my referral code. If you wish to venture out and build your financial goals, please visit my referral code page thank you in advance.

Portfolio Summary

Again, like many other months when I look at my portfolio, I look at it as long-term growth. I am quite positive about US equities. My Ultra cash portfolio isn’t doing too great. In hindsight, I repeat that I do regret my decision because I thought I can take my liquidity out within 3 months but no. Now, I have to do it at a loss. This really sucks because Endowus did a boo-boo by saying that it can be a short-term cash-fund holding. Now, I am becoming a long-term investor and had to find cash for my large purchases that were coming up. I am still miffed about it but I’m not taking it out at a loss. It doesn’t mean that Fixed Income will stay down all the time. In fact, I might add on more Fixed Income related funds or investments going forward.

Like any other period, I still trust Endowus and I would actually recommend them to anyone I know for the investment concept. (Maybe not the cash solutions and also review them on a more frequent basis – In case they lose their goals or focus for any reason) I know that my investments will be safe with them. I’m happy with them for the investment part of things. I also learned that different people/companies have different expertise.

Lower Investment amount (This is quite important for new investors)

Whatever it is, they have been quite reasonable about everything. Another plus point is that they have also given me a lot of comfort in the way they allow investors to reduce their initial investing sum. A minimum sum should not be the way to invest. Overall, I feel that I take more pride in knowing who is holding my money and how they do it.

Lowering the bar also allows people who are younger to start early in this long-term process. The other point is what many people are talking about which is the fees. They are probably the only ones in the market to rebate trailer fees. I like that bold big move as compared to the other advisors. I will slowly shift my funds over to them. Everyone is different so, you have to try them out first before you decide.

There’s something else which I like about them and that is how they use the power of retail investors to put money into institutional class funds. These funds are accessible only to people with the money and volume to purchase. Yet, they are now available to retail investors.

Total Portfolio

I decided to scrap away all those segmented accounts with different goals and look at the portfolio as a whole instead.

I don’t really have a strategy. But for now, I will move more into the Fixed Income space with my spare cash.

I’m do think that once we see some flattening of inflation, S&P 500 should start to see some bull legs.

As you can see, the all-time record is that I am now down -3.77%, which is rather disappointing considering that I have a relatively balanced portfolio. The bulk of the unrealised loss is actually from my cash funds. If you look at YTD performance, it is down -5.89%, which is rather in line with the current markets but I do expect better considering I had a good entry-level during the start of the covid investing when the markets were pushed down in a synthetic way in 2020.

The reason for Endowus

Like a broken recorder, why do I like using them for now:

  • Endowus is the first and only robo-advisor to be approved by the CPF board.
  • 100% trailer fees back to the consumer, not the fund management fee. This is really one of a kind I’ve seen so far.
  • They do have a decent team who makes sense when introducing their platform in my personal opinion.
  • I believe all retail investors should try them out because of how they are trying to disrupt investing and make investing work for everyone.

Thank you all in advance for using my referral code.

The last point is to do your own diligence. What works for me may not work for you. Investing in traditional portfolios is about risk management. My Cash Funds are bleeding. That was a super bad call by Endowus.

Disclaimer

If you decide to sign up with Endowus, do remember to use my referral code: https://endowus.com/invite?code=EDZ8M

If you like what I am sharing or if it resonates with you, do use my referral codes for other services at Referral and Recommendations

These pictures were taken off the Endowus website for reference.

Endowus Performance Review – Nov 2022

On By RistrettzIn Performance, Personal Finance Series, Robo AdvisorsLeave a comment

After a short break and some self-sustained recovery, I think it is time to get back to updating the portfolios. During this period when I was down, I was not really monitoring the markets. In fact, I set my RSP up over these 8 – 9  months that I was missing in action. Partly, it was due to work and also self-discovery wellness. In my last post, I discussed being away and not being able to do anything to your portfolio and again I was away. I find that robots suit my style of investing. In good times and in bad times because I am just not in the right frame of mind to manage my portfolio. Not anyone can just buy in when the market is down. You need to understand your own investment appetite.

Thank you to those who have used my referral code. If you wish to venture out and build your financial goals, please do visit my referral code page thank you in advance.

Portfolio Summary

The whole portfolio has taken a big hit this year in 2022 and there’s nothing much to shout about but I look at it as long-term growth. I am quite positive about US equities. My Ultra cash portfolio isn’t doing too great. In hindsight, I repeat that I do regret my decision because I thought I can take my liquidity out within 3 months but no. Now, I have to do it at a loss. This really sucks because Endowus did a boo-boo by saying that it can be a short-term cash-fund holding. Now, I am becoming a long-term investor and had to find cash for my large purchases that were coming up. I am still miffed about it but I’m not taking it out at a loss. It doesn’t mean that Fixed Income will stay down all the time.

Like any other period, I trust Endowus and I would actually recommend them to anyone I know for the investment concept. (Maybe not the cash solutions) I know that my investments will be safe with them. I’m happy with them for the investment part of things. I also learned that different people/companies have different expertise.

Lower Investment amount

Whatever it is, they have been quite reasonable about everything. Another plus point is that they have also given me a lot of comfort in the way they allow investors to reduce their initial investing sum. A minimum sum should not be the way to invest. Overall, I feel that I take more pride in knowing who is holding my money and how they do it.

Lowering the bar also allows people who are younger to start early in this long-term process. The other point is what many people are talking about which is the fees. They are probably the only ones in the market to rebate trailer fees. I like that bold big move as compared to the other advisors. I will slowly shift my funds over to them. Everyone is different so, you have to try them out first before you decide.

There’s something else which I like about them and that is how they use the power of retail investors to put money into institutional class funds. These funds are accessible only to people with the money and volume to purchase. Yet, they are now available to retail investors.

Total Portfolio

I decided to scrap away all those segmented accounts with different goals and look at the portfolio as a whole instead.

I hope can recover some of the losses but as a function of market-related money market funds, I think it will take longer than i expect.

I hope that I will be able to add more funds to the S&P 500 if it dips over the next few months.

As you can see, the all-time record is that I am now down -4%, which is rather disappointing considering that I have a relatively balanced portfolio. The bulk of the unrealised loss is actually from my cash funds. (Sad to say that FI instruments are still doing that badly) which is why it is true that no one has the crystal ball and we have to diversify. If you look at YTD performance, it is down -6%, which is rather in line with the current markets but I do expect better considering I had a good entry-level during the start of the covid investing when the markets were pushed down in a synthetic way in 2020.

I’m still looking forward to the day when S&P 500 goes up the roof and I see my portfolio doubling.

The reason for Endowus

Like a broken recorder, the pros once more:

  • Endowus is the first and only robo-advisor to be approved by the CPF board.
  • 100% trailer fees back to the consumer, not the fund management fee. This is really one of a kind I’ve seen so far.
  • They do have a decent team who makes sense when introducing their platform in my personal opinion.
  • I believe all retail investors should try them out because of how they are trying to disrupt investing and make investing work for everyone.

Thank you all in advance for using my referral code.

The last point is to do your own diligence. What works for me may not work for you. Investing in traditional portfolios is about risk management. My Cash Funds are bleeding. That was a super bad call by Endowus.

Disclaimer

If you decide to sign up with Endowus, do remember to use my referral code: https://endowus.com/invite?code=EDZ8M

If you like what I am sharing or if it resonates with you, do use my referral codes for other services at Referral and Recommendations

These pictures were taken off the Endowus website for reference.

Broker for Second Life Items/Electronics

On By RistrettzIn Personal Finance Series, RandomLeave a comment

Ever used Carousel or Gumtree to purchase or sell your items. To be very honest, Carousel has been a great game changer to date. Though I really doubt the way they can make money and how it is possible to raise so many funds. Users stand to benefit from setting up stores. However, their systems have been breached twice and they ought to make some security improvements to protect consumer interests.

In a way to recycle and reuse items, in a way to help the world and not generate waste. There is a Chinese saying that says do not do or give anything to anyone if you do not want them to do the same to you. So, I really dislike it when someone tries to dump their stuff on me in the context of good faith. (It just means they want to declutter but yet want to be a good saint)

Some items that I have at home are rarely used and they have been bought new (6 months to 1 year) bar fridge, toaster, baby items, etc..) and I think they can be put to good use. Though I can’t stand the bargaining and “quick sale”, These products find a second lease on life.

It does sound like I am ranting a little but I get a teeny weeny bit irritated with the bargaining and the emotional plea of budget. I think many people lack flair and being fair. This is a second-hand platform and not a brand-new store. Don’t think NEW, think about the condition and electronics are meant to be lasting at least 3-5 years. To also be fair, I do know of some people who don’t take care of their stuff. It could be that they can’t be bothered or just pure negligence (I don’t know – It doesn’t get you anywhere if you say you don’t know)

These images are obtained from the carousell website

Be respectful to yourself, and don’t take others for granted. When others help you, don’t treat them as a help desk. Personally, I prefer the DIY route because customer service is negligible in the current world. Very few companies out there focus on customer service B2C.

It just came to my mind when I got a message that someone wanted to purchase something from me and that there is no such thing as no demand.

a. If the product is not sought after by anyone. Sell it at a discounted price – There will be takers eventually because everyone has a reservation price regardless of how low it is. It means that 99% of people actually know that they have to open their wallets to get something.

b. If the item is a branded/well-known item, you don’t need to discount it too much. Why?

  • If you sell it way too low, people actually think that it is a fake product (What’s the catch? That’s how Singaporeans are)
  • Brand products typically sell. Singaporeans know the good stuff.

c. If the seller has a reservation price that is higher than the buyer then you got to wait before you get rid of your stuff.

These are simple economics, subtract the communication portion which I really dislike a lot. There are a lot of lowballers and people who don’t respect. Just because they are behind a digital app, doesn’t mean that one can do that.

Meanwhile, good luck with decluttering.

This post came about because Christmas is coming (Wastage is coming) and the Chinese Lunar New Year is around the corner and it pays to plan in advance.

Please do check out my referral store to see if any stuff works for you to get your free cash. These keep the light on this blog active and I thank you in advance.

Interest Rate Series (DBS Multiplier) [2.5 out of 5 Burger Patties]

On By RistrettzIn Interest Rate Series, Interest Rates, Personal Finance Series, RandomLeave a comment

As on 4 November 2022

On 4 November 2022, 3 working days after OCBC rolled out their new interest rate on their flagship 360 accounts, DBS followed up with an email that the DBS Multiplier has increased from 3.5% to 4.1%. The balance cap amount is also increased to S$100,000

The Multiplier account has always been proportioned by the transaction amount.

below S$2,000

S$2,000 to below S$2,500

S$2,500 to below S$5,000

S$5,000 to below S$15,000

S$15,000 to below S$30,000

Above S$30,000

The next layer of categories to fulfil will be the number of categories. They are known to be:

1. Salary/Dividends/SGFinDex

The Salary portion has to be a GIRO transaction with code “SAL” or “PAY”, which seems pretty strict given that there are increasing numbers of the next generation in the ‘gig economy’

For dividend crediting, these eligible dividend has to be from CDP, DBS Vickers Securities, DBS Online Equity Trading, DBS Unit Trusts, DBS Online Funds Investing and Invest-Saver (Promotion their own eco-system)

Connecting and sharing financial information from SGFinDex to NAV Planner (I would think one needs to do this on a monthly basis

2. Credit Card Spend

For the monthly card spend, it has to be on any DBS credit card and has to be eligible spending. Eligible will be the usual suspects and it will be very much dependent on the MCC codes.

3. Home Loan Installment

Home Loan financing has to be from DBS or POSB (New or Refinancing). The eligible amount will be from the monthly home loan instalment amount.

4. Insurance

Similar to my previous post on insurance and investment in these high-yield accounts. These are usually valid for a limited period and interest rates are always subject to changes. Further, only selected insurance are eligible.

5. Investment

Nothing much to comment on here. This section will be pretty hard for most people to fulfil.

Additional option: The PayLah! Retail Spend. Honestly, don’t seem like a good deal to me.

The ideal interest rate will be between 0.9% to 2,5%. Frankly, nothing much has changed though and I don’t think it is even worth announcing via their communication channels. I feel like there wasn’t even much thought placed into it. I just felt like it isn’t any effort to compete with these changes. With the most recent 0.75 bps increase by the US Feds, this is not anything competitive and not quite worth looking into for now.

For more information, check the link here: DBS Multiplier Calculator

Conclusion

Nothing worth looking at for now. Till next time.

Interest Rate Series (OCBC 360) [4 out of 5 Burger Patties]

On By RistrettzIn Interest Rate Series, Interest Rates, Personal Finance Series, Promotion, RandomLeave a comment

As on 3 November 2022

The week has been intercepted by headline interest rate hike news and OCBC 360 certainly did take out their competition with a banging headline. As of the 1st of November 2022, the entire suite of the OCBC 260 flagship account will revise its interest rate across the board.

As of their online quote, “The OCBC 360 Account has six bonus interest categories – Salary, Save, Spend, Wealth (Insure), Wealth (Invest) and Grow. By tapping on just three of these categories – Salary, Save and Spend – customers will be able to earn interest of 4.65% p.a. on the first S$100,000 in their bank account.”

Prior to this due to the interest rate environment, the first S$100,000 could get you 1.85% p.a. The biggest update is that for their spending options, you can use the OCBC 365 credit card, OCBC Titanium Rewards credit card, OCBC 90°N Visa card and OCBC 90°N Mastercard.

There are a total of 6 categories:

Salary, Save, Spend, Insure, Invest and Grow.

The basic of the high-yield account is to fulfil the following – Salary, Saving (Keeping the average daily balance by $500 increment monthly) and spending S4500 to the above-mentioned OCBC credit card each month. Quite simply put, by fulfilling these three options, your interest yield is 4.65% p.a. for up to $100,000. (technically 4.64962903% p.a.)

Over 365 days, the interest earned is S$4,649.63

Salary

You need to credit at least S$1,800 of your salary to fulfil the Salary Category. That is if your HR allows that or if you are not employed in another rival or financial institution.

Save

You need to have an incremental S$500 in your monthly balance. However, if this is your transaction account then it might be an issue. But as long as it is an incremental (Average daily balance)

Spend

You need to spend S$500 on selected OCBC credit cards. You can use the OCBC 365 credit card, OCBC Titanium Rewards credit card, OCBC 90°N Visa card and OCBC 90°N Mastercard.

Insure & Invest

Forget about the insurance and Investment portion, there’s probably no way around those.

Grow

For the Grow category, if you have an additional S$100,000 to keep the average daily balance of S$200,000, the first S$100,000 will get an additional 2.40% p.a. while your remaining S$100,000 remain at the 0.05% p.a.

To illustrate, the interest over this S$200,000 will be S$7,099.60 hence the yield for this amount will be 3.55% p.a. (technically 3.54980161% p.a.

To calculate your interest amount, use the link to calculate the expected interest on your saving amount here: Calculate your Interest Amount

Conclusion

This is very interesting indeed. Because competitors will drastically make these changes as well. The interest rate hike might be a good and bad thing. However, take note that these rates are never confirmed or fixed. They follow the current market conditions. By taking on investments or insurance, these interest rates might change fast and furious. Overall, valiant effort and quite good timing as well. In the next few weeks, we might see revisions to compete with this increase in interest rate.