Happy New Year everyone! This is my inaugural post for this blog and I hope that I am able to share what I know with the rest of the you folks out there who are striving to save your hard earned dollars and stretch your every cent in this environment of economic uncertainty and high inflation.
There is a new eMySavings Account + ("eMSA+") savings promotion advertised by POSB/DBS on Sunday Times today. At initial glance, it caught my eye and was providing a very attractive savings reward of 3.0% p.a. from 11 Jan to 25 June 2013 (and 1.5% p.a. from July 2013 onwards) for new monthly deposits of between S$800 - S$5000. It is primarily aimed at encouraging depositors to save regularly by depositing a regular amount each month.
To be eligible for the savings award, your eMSA+ must:
- have successful crediting of the monthly savings amount over 6 consecutive months and
- no withdrawals made over the same 6 consecutive months
These are applicable for monthly savings amount of S$800 to S$5,000 and depositors will receive a base interest on the account balance balance and an additional savings award on top of the monthly savings amount.
Please refer to POSB website link below for more details.
http://www.posb.com.sg/personal/deposit/e-msa/default.page?pid=posb_pweb_homepage_bnr_deposit_emsa
This is also available to DBS bank clients.
Depositors will receive the savings award of 3% p.a. for the first 6 months and 1.5% p.a. for the subsequent 6 months on NEW deposits only. I did a rough calculation assuming $1,000 was deposited on 31 Jan 13 and 3% p.a. savings award in the first month and 0.25% base interest was earned each month, the effective interest rate for the year will be approximately 0.48% p.a.
You will earn 0.05% p.a. if there’s an unsuccessful crediting of your monthly savings amount, withdrawal made or your account is closed during the month.
This savings product may be considered a "pseudo" fixed deposit for a term of 6 months. In recent months, local banks have come up with many varying products in a bid to attract "sticky" deposits. "Sticky" deposits are deposits which stay with the bank for long periods of time at low interest rates after their attractive introductory rates. Depositors tend to be LAZY and not wanting to move their deposits to another bank offering much better rates (just like my LAZY husband!). In a promotion that ended last month, Standard Chartered Bank came up with step-up deposits with sub-tenures of 3 months within longer tenures like 2 or 3 years to give flexibility to depositors. I am expecting more promotions coming up and do make use of them if they make sense / "cents" to you.
It might be worth your while to check out CIMB StarSaver account which is also a regular savings account and will earn you 0.8% p.a. with S$500 or more savings per month
http://www.cimbbank.com.sg/index.php?ch=sg_per_st&pg=sg_per_st_cur&ac=12&tpt=cimb_sg#
if you are looking for a regular savings account. Otherwise, please look out for the next deposit promotion that comes along.
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