Tuesday 30 December 2014

Preparing for the Arrival of Baby in 2015

I have not been writing my blogposts frequently due to the need to do research on baby stuff. Being a first-time mum, I have been reading up ferociously on things that I need to prepare for the arrival of our little one. Besides asking experienced mums for their useful tips, I have also read reviews on the online forums and resources on what to expect and prepare. 
 
There are numerous baby items to be purchased as a first-time parent and as I hope to get the best bang for my buck, I have done a lot of research online to get the best deal in terms of quality and price. Besides going down to the physical shops, I have also done my homework on the web at the many online stores operating locally to compare prices and look at the selections. I don't expect to have the luxury of doing shopping very often once the baby arrives and these online stores will provide the convenience that the modern mum needs by delivering the goods right to your doorstep and often free delivery is provided with a minimum purchase of $60 to $100. Amazon.com USA now provides free delivery to Singapore on many items with a minimum purchase of US$125. I also like to refer to the reviews left by those who have made purchases previously to see if they found the product useful or not. If you want to go to the trouble of using shipping consolidators, you can also have the choice of shopping on other US shopping sites in the comfort of your home. Baby fairs held from time to time at the Singapore Expo, Suntec City and Takashimaya also provide attractive discounts and promotions on baby products, if you have time to make your way there.

I have affirmed that it is indeed not cheap to have kids in Singapore, even when the Singapore government is trying to help to defray some of these costs by giving out baby bonuses, subsidies, allowing the usage of our CPF funds to pay for visits to the obstetrician and delivery, subject to certain caps, amongst others. No wonder Singaporeans are having children later and later in life and having fewer of them. Having said that, it is still a personal choice whether you want to keep things simple or want to splurge on the best for your child.

It can cost between $5,000 to $25,000 onwards to prepare for the arrival of your baby. Most people spend from $10,000 to $12,000 on average. Aspiring parents have to start tightening your belts in order to provide for your child.

Delivery
Normal (vaginal) delivery can range from $1,000 to $12,000 depending on whether you choose  Government subsidized hospitals or Private hospitals and the type of ward you stay in. Please refer to MOH website for more details.
 
Delivery via Caesarean section can range from $2,000 to $18,000. Please refer to MOH website for more details.

If you wish to make claims from CPF for your delivery, do note that there are certain caps to be adhered to:
Maximum Medisave Claimable (subject to CPF Board approval)
Antenatal $450
Normal Delivery $750
Caesarean Delivery $2,150
Hospital Stay $450 per day
Neonatal screening tests and vaccinations $400 per account per year
Please refer to the CPF website for more details.

Confinement Nanny or DIY Confinement
Whether you choose to observe the confinement month or not also determines how much you will be spending in the month after child birth. A 28-days confinement nanny can cost somewhere from $2,500 to $4,000 during the Chinese New Year period, not forgetting the obligatory ang pows that you have to dish out before they start work and after they complete the stint which will add another $100 to the cost. This is not including the herbs that you have to purchase so that the nanny can prepare nutritious tonic food to help you in your recuperation. This will add another $100 to $300 on top of the costs.

If you prefer to do-it-yourself or get your mum or mother-in-law to help you during the confinement period, you have the choice to cater confinement food from experienced establishments which will cost anywhere from $400 to $900 depending on how many meals you cater per day.

Baby Essentials
Well, baby essentials like clothing, bath/baby care products, diapers / reusable nappies, nursing and feeding items, nursery items like cots, playards and toys will come to mind. There is a wide array for us to choose from to suit our needs. We may also prefer certain brands to others and these may cost more.
 
Post Natal Massage
Some mothers consider this a luxury but for others, it is a necessity, so as to get back in shape quickly after delivery. After 10 months of pregnancy, this will be an affordable luxury for new mummies to relax and pamper themselves. Depending on the type of packages and the masseurs you choose, whether freelance or from massage centres, you can expect to pay at least $300 to $800 for this.

Others
There are also many optional items like cord blood banking, baby's full month celebration and cakes, newborn photography, geomancer consultation to determine the Chinese name of the baby (if you are Chinese and require such services), just to name a few. Expect to spend another $8,000 to $10,000 or so if you want them all.

Conclusion
What will you choose for your baby and yourself? Most of us have budgetary constraints, so we will have to weigh the pros and cons, in order to make the final decisions. We must not forget that, at the end of the day, it is our love for them that matters most rather than any material wants which are definitely secondary.



Saturday 27 December 2014

Understanding Your Credit Report

Two weeks ago, I attended a talk organised by the Credit Bureau Singapore (CBS) on Understanding Your Enhanced Credit Report. The bureau representative went though the information shown in a Credit Report and how to improve your credit rating.

Why are Credit Reports Important?

Your credit report is a record of your credit payment history compiled from banks and major financial institutions. CBS supplements it with publicly available information such as bankruptcy data from the Insolvency and Public Trustee's Office (IPTO).

Lenders typically check your credit file to assess your credit worthiness prior to making a decision to provide credit or giving out loans. They usually look out for the repayment status of credit facilities, credit repayment history, any default / bankruptcy information, number of existing credit facilities, new enquiries, outstanding balances and overdue balances in the credit report to assess your credit worthiness.

Also, the credit report has now become crucial for financial institutions to assess potential borrowers who are interested to take up home loans as they have to comply with the minimum Total Debt Servicing Ratio (TDSR) set by Monetary Authority of Singapore (MAS) of 60%. Please refer to the full details on the new property cooling measures and rules here.

CBS does not play a part in the lending approval decision. The lending decision is solely at the discretion of the lenders after applying different criteria to evaluate a consumer's credit worthiness.

What Information is Displayed in a Credit Report?
 
There is usually a 1 to 2-month time lag in the information presented in a credit report as the banks need time to submit information to the credit bureau for aggregation and compilation.

A Credit Report typically includes a Summary of your personal credit facilities and aggregate credit limits, Account Status History, Previous Enquiries, Default Records, Bankruptcy Proceedings, Debt Repayment Scheme (DRS), Narratives, Credit Score, Aggregate Outstanding Balances.

Information remains on a credit report for varying lengths of time depending on its relative importance in the credit-worthiness assessment. For example, Aggregate Outstanding Balances are retained for 6 months while Bankruptcy Proceedings remain for 5 years from date of discharge.

What is a Credit Score?

A Credit Score is a number used by lenders as an indicator of the likelihood of debt repayment and the probability of going into default. The score ranges from 1000 to 2000, where individuals scoring 1000 with the highest likelihood of defaulting on a repayment, whereas those scoring 2000 have the lowest chance of being delinquent.

Factors Affecting Your Credit Score

The 7 main factors affecting your credit score are as follows: Utilization Pattern, Recent Credit, Account Delinquency Data, Credit Account History, Available Credit, Enquiry Activity and Excessive Credit.
 
How Do I Improve My Credit Score?
 
These are the factors which would assist you to improve your credit score:
1. Paying your bills on time and in full
2. Not having overdue balances
3. Keeping your outstanding debts low or consider charging less
4. Not having bankruptcy and default information in your credit report
5. Limiting the number of credit facilities you own
6. Not applying for lots of credit within a short period of time

A Complimentary Copy of Your Credit Report
 
A complimentary copy of your credit report will be provided within 30 days, from the date of your credit application with any CBS members. To obtain your free credit report, kindly request in-person at the CBS office.
 
How to Obtain Your Credit Report
 
A paid copy of the report at S$6.40 can be obtained by :
Applying online via www.creditbureau.com.sg with your SingPass ID and Password

Or, applying in person at the following locations:

CBS office at 2 Shenton Way, #20-02, SGX Centre 1
Any SingPost offices island-wide
Crimson Logic Services Bureaus at Chinatown Point #19-01/02 or Supreme Court Building, Level 1
CASE office at #05-01, Ulu Pandan Community Building

Please refer the website for more details and to sign up for the talk if you are interested.

 
Current Credit Situation in Singapore
 
It was reported in the Sunday Times on 14 Dec 2014 that credit cardholders chalked up a whopping $10b in outstanding credit card loans by Xmas. However, two in three customers still pay off debts in full every month. Around 3% of credit cardholders (about 47,000 people) have debts exceeding a year's salary. MAS says that the consumer credit situation in Singapore remains sound as most consumers use their cards prudently as a payment channel rather than as a source of credit. To help people avoid debt problems, MAS is strengthening credit card and unsecured credit rules in 3 ways:

1) Enhanced Credit Assessment

Since June 2013, financial institutions have been required to conduct checks with the credit bureaus and take into account the total credit limits and total outstanding debt balances of a borrower before they can grant him or her a new credit card, a new unsecured credit facility or an increase in credit limit.

2) Measures to Prevent Debt Accumulation

From June 2014, financial institutions will not be allowed to grant additional unsecured credit to a borrower who is 60 days or more past due on any credit card or unsecured credit facility.

In addition, other financial institutions will not be able to increase credit limits or grant new unsecured facilities to this individual.

They will also be prohibited from granting further unsecured credit to a borrower whose outstanding unsecured debt aggregated across all financial institutions exceeds his annual income for three consecutive months or more.

3) Information Disclosure

Also from June 2014, financial institutions will be required to disclose to borrowers who do not pay their bills in full how their debts will accumulate and how long it will take for them to settle their bills fully if they were to pay only the required minimum payment every month.

Conclusion

Hence, it becomes increasingly important for consumers like us to be financial savvy and know what the financial institutions are looking out for, especially if we want to score a loan for our private property. 

Tuesday 23 December 2014

UOB launches new online property loan Total Debt Servicing Ratio (TDSR) Calculator

For those hoping to buy a property as the property market is softening, UOB just launched an online proeprty loan calculator for you to determine your total debt servicing ratio (TDSR) for mortgage loan applications.

Under the Monetary Authority Authority (MAS) TDSR framework, financial institutions can only offer loans to customer with a TDSR of 60% or lower. UOB's TDSR calculator covers loans to purchase and refinance properties from private residences, HDB flats, international properties and commercial properties. 

The service is free and can be found on UOB's website under the bank's Mortgage Resource Centre. For more details, please refer to the website.

Wednesday 17 December 2014

Hong Leong Finance HDB Home Loan Promotion

Hong Leong Finance is offering attractive 3-year fixed rates on HDB home loans, lower than the HDB concessionary loan rates.
 
 
Period
Interest Rate* (% p.a.)
1st Year
1.19% (Fixed)
2nd Year
1.49% (Fixed)
3rd Year
1.59% (Fixed)
Thereafter
3.25 (HHR# - 1.25)


#HDB Home Rate (HHR) is currently at 4.50% p.a.

*For minimum loan of S$100,000 and 3-room HDB flats and above. HDB Concessionary Loan Rate is 2.60% p.a. at publishing time.
 
Please refer to the website for more details. 

Hong Leong Finance Fixed Deposit Promotion

To celebrate Singapore's 50th birthday, Hong Leong Finance will be offering promotional rates below on its fresh funds fixed deposits:

Interest Rates (p.a.) for Fresh Funds
Amount
12-month
15-month
18-month
S$25,000 to < S$100,000  
1.30%
1.35%
1.40%
S$100,000 to < S$200,000  
1.35%
1.40%
1.45%
S$200,000 and Above
1.37%
1.42%
1.48%
 


Please refer to the website for more details.

UOB SGD 6-Month Fixed Deposit Promotion

Enjoy interest rate of 1.50% p.a.* on a 6-month Singapore Dollar Fixed Deposit.

You might have noticed that during the last Fixed Deposit Promotion that UOB had in Nov 2014, they were offering 1.25% p.a. interest on a 8-month Singapore Dollar Fixed Deposit and current rates that they are offering is more attractive, albeit a shorter tenure. We can foresee interest rates slowly inching upwards and this is definitely good news for depositors like us.

Tenor
Promotional Interest Rate* (p.a.)
  6-month
1.50%

Simply deposit a minimum of S$20,000 in fresh funds.
This promotion is available from 15 December 2014 to 31 December 2014.

Please refer to the website for more details.

Friday 12 December 2014

RHB Fixed Deposit Promotion

RHB is now offering up to 1.375% p.a. on its fixed deposits, limited to fresh funds only. See below for the promotional rates.

Tenure
Interest Rate (% p.a.)
Deposit Amount
S$20,000 to S$249,999
S$250,000 and above
6-month
0.90%
1.025%
9-month
1.25%
1.375%
 
Hurry now to enjoy this Christmas Promotion!

Please refer to the website for more details.



Tuesday 25 November 2014

Best Credit Card Promotions for your 2014 Christmas Spendings

So, it's the season of giving again. Ever wondered which credit card gives you the best bang for your buck this season? We list down the various card promotions offered by the banks for you to decide.

DBS launched its 50 Gifts 50 Days campaign from 6 Nov to 26 Dec, available for redemption with a min. spend of $200 in a single receipt for local retail and online transactions only.

DBS also has tie-ups with Takashimaya and Capitamalls for surprise gift bag redemptions or shopping vouchers.

Please refer to the website for more details.





Share the real magic of Christmas with HSBC's Dollar Pass. Treat your loved ones to any one of the S$1 offers at over 300 merchant outlets islandwide with every S$80 charged to your HSBC credit card. Please refer to the website for more details.

For big spenders, enjoy unlimited family fun at Resorts World™ Sentosa when you charge to your HSBC Credit Card from 16 November to 31 December 2014 this Christmas season. Minimum qualifying card spend is $3,500. Please refer to the website for more details.





Spend on any OCBC Credit/Debit Card from 28 Nov to 31 Dec and redeem the latest gadgets which includes the Samsung Galaxy Note 4 4G+, GoPro Hero 3+ White Edition and BitFit Flex Wireless Activity Tracker with minimum spending of S$3,000 onwards. Please refer to the website for more details.






Citibank chose to focus on online shopping at the Black Friday sale by offering shopping rebates and shipping discounts at vPost and Borderlinx from 27 Nov to 14 Dec 2014.

Please refer to the website for more details.






From 14 Nov 2014 to 14 Jan 2015, charge a minimum of $10,000 to your Standard Chartered credit card and get to redeem a Sodastream Soda Maker, GoPro HERO3+ or a 1-night stay in the Marvelous Suite at W Singapore, Sentosa Cove.

For Visa Infinte card holders, the first 1,000 card members who spend more than $8,000, will get 10X points for every dollar spent thereafter.

Please refer to the website for more details.

So, does this give you sufficient reason to loosen your purse strings and be generous to your loved ones this Christmas? Do let us know if you find this guide useful. Happy Shopping!!

POSB 1.5% p.a. Interest on Savings Promotion


Enjoy 1.5% p.a.* for 6 months when you top-up your savings account between S$1,000 and $20,000!

How to qualify:

  1. Register by 22 Dec 2014.
  2. Complete a one-time top-up by 31 Dec 2014.
  3. Maintain top-up amount for 6 months.
* Promotion period is from 18 Nov 2014  to 22 Dec 2014. Qualifying customers will receive 1.5% p.a. lump sum cash gift on the fresh funds deposit by 30 June 2015. The fresh funds deposit will be earmarked for the next 6 months and not be available for withdrawal.

Please refer to the website for more details.

Thursday 13 November 2014

MasterPass by MasterCard Promotion

If you like to shop online, this is good news for you. Now, MasterCard has now introduced the new way to pay online with the new MasterPass.

Convenience - One-time registration of multiple cards and shipping details with MasterPass

Speed - Click the 'Buy with MasterPass' button and enjoy fast checkouts without having to fill out your details every time

Safety - Checkout with confidence knowing that your payment is protected by MasterCard's global network together with your bank

Be the first 3,500 to register now at MASTERPASS.COM.SG and receive a S$50 pre-paid card.

HSBC Premier Banking Promotion

Get rewarded when you start an HSBC Premier relationship with a minimum of $200,000 or equivalent in deposits, investments and/or insurance.

Enjoy preferential interest rates on your SGD savings of up to 1.28% p.a. plus
receive 2 Cathay Pacific return air tickets to Hong Kong*.

Promotion is valid until 31 December 2014. Please refer to the website for more details.

* Top-up options to further destinations are available for qualifying eligible customers who do not wish to travel to Hong Kong. Customers must book their air tickets by 31 March 2015 and travel by 30 June 2015. Air tickets provided, refer to Cathay Pacific Economy Class air tickets and exclude relevant taxes, surcharges and high season surcharges.

Bank of China RMB and SGD Time Deposits Promotion

Bank of China is offering one of the best rates in town for individual customers with fresh funds placed with the bank.

 Enjoy up to 3.30% p.a. on RMB Time Deposits*.

Deposit Amount
Tenor (p.a.)
(RMB)
3-Month
6-Month
9-Month
12-Month
50,000 to 1,999,999
2.65%
2.85%
3.05%
3.25%
2,000,000 and above
2.80%
3.00%
3.10%
3.30%

For SGD Time Deposits, you can enjoy a high interest rate of 1.25% p.a.

Deposit Amount (SGD)
8-Month Tenor (p.a.)
$80,000 to $250,000
1.25%

* For 12-Month RMB Time Deposits, receive a pair of limited edition Plush Pandas or a Travel Adaptor with a minimum deposit of RMB 50,000 or a $50 Takashimaya shopping voucher with a minimum deposit of RMB 2,000,000. Promotion is limited to one gift per eligible customer, while stocks last.

Please contact the bank directly for more details.

Monday 10 November 2014

Maybank SGD Time Deposit Promotion

Get your interest the next day when you deposit a minimum of S$25,000 in fresh funds into a Singapore Dollar Time Deposit with Maybank and enjoy up to 1.55% p.a. interest.
 
Tenure
Minimum S$25,000
Minimum S$50,000
12-month
1.10%
1.35%
18-month
1.18%
1.45%
24-month
1.28%
1.55%

Please refer to the website for more details. Promotion runs till 31 December 2014 and may end earlier at Maybank's absolute discretion.


Thursday 6 November 2014

Bank of China RMB Time Deposit Promotion

Enjoy high promotional rates and receive free gifts for RMB Time Deposits (Fresh Funds) placed with Bank of China from 24 October for a limited time period only. Please refer to the tables below for the various tenors and interest rates.

Deposit Amount
Promotional Interest Rates - % p.a.
(RMB)
3-Month
6-Month
9-Month
50,000 to 1,999,999
2.65%
2.85%
3.05%
2,000,000 and above
2.80%
3.00%
3.10%
 
 
Deposit Amount
Promotional Interest Rates for 12-Month Tenor - % p.a.
Free Gift
(RMB)
50,000 to 1,999,999
3.25%
A Pair of Limited Edition Plush Panda OR Travel Adaptor
2,000,000 and above
3.30%
S$50 Takashimaya Shopping Voucher


Please refer to the website for more details.

Bank of China 8-Month SGD Time Deposit Promotion

Enjoy high promotional interest rates with Bank of China from 3 November for a limited period only for fresh funds placed with them.

Deposit Amount (SGD)
Interest Rate for 8-Month Tenor*
$80,000 to $250,000
1.25% p.a. 

Please refer to the website for more details.

CIMB 12-Month SGD Fixed Deposit Promotion

Enjoy up to 1.30% p.a. interest rate for a 12-month Fixed Deposit with CIMB. Promotion ends on 31 December 2014.

Deposit (Fresh funds)
Interest Rate
S$25,000 to below S$250,000 1.25% p.a.
S$250,000 and above 1.30% p.a.

Please refer to the website for more details.



Maybank 5-Year Structured Deposit Promotion

From 27 Oct to 8 Dec 2014, invest in Maybank Saver Series 7 Structured Deposit and earn up to 11% over 5 years, including a bonus interest of 1%* at the end of Year 5.

Tenure
 
Year 1
Year 2
Year 3
Year 4
Year 5
Potential Total Payout
Guaranteed Annual Payout
SGD
2%
2%
2%
2%
2% + 1%*
11%
* Bonus interest of 1% is only applicable at end of Year 5, if the 6-month Singapore Dollar Swap Offer Rate is 3.5% or above.

A minimum investment amount of S$30,000 is required and 100% principal is guaranteed at maturity.

Please refer to the website for more details.

UOB 8-Month SGD Fixed Deposit Promotion

Enjoy interest rate of 1.25% p.a.* on a 8-month Singapore Dollar Fixed Deposit.

Tenor
Promotional Interest Rate* (p.a.)
  8-month
1.25%

Simply deposit a minimum of S$20,000 in fresh funds. This promotion is available till 29 November 2014.

Please refer to the website for more details.

UOB Christmas Savings Promotion

Enjoy a high interest rate of up to 1.2% p.a. plus receive CapitaVouchers when you deposit with UOB.
 
Fresh Funds deposit
S$15,000 to S$50,000
Above S$50,000 to S$100,000
Above S$100,000
Bonus Rates (p.a.)
0.7%
0.9%
1.1%
CapitaVouchers
-
S$50
S$100
Get up to 1.2% p.a. interest (total interest rate). Illustration: 1.1% p.a. interest (Bonus Rate assuming Fresh Funds
deposit of above S$100,000) + 0.1% p.a. interest (Prevailing Interest Rate for account balances above S$350,000).

 Promotion ends on 31 December 2014. Please refer to the website for more details.
 

HSBC 10-Month SGD Time Deposit Promotion

From now till 29 November 2014, HSBC will offer 1.3% p.a. interest rates on your time deposits of minimum S$30,000 for HSBC Premier customers (1.25% p.a. for HSBC Advance customers)

Interest rate
Minimum
Reward
(10-month tenor)
Placement
(Robinsons 
 
 
vouchers)
 
S$30,000
-
up to 1.3% p.a. 
S$200,000
S$100 voucher
 
S$500,000
S$300 voucher
 
S$1 million
S$700 voucher
* Fresh funds only 

Please refer to the website for more details.

Monday 3 November 2014

Standard Chartered 4 Year Step-Up Fixed Rate Structured Deposit 5 Promotion

Standard Chartered Bank is also offering structured deposit products to the retail investor. However, the interest rates offered seem less attractive than the recent UOB and Maybank ones. Details of issue are below:

 
Issuer
Standard Chartered Bank (Singapore) Limited ("SCBSL" or "the Bank")
Investment currency
SGD
Tenor
4 years
Application period
Application ends 03 November 2014
(or earlier, subject to market conditions)
Start Date
11-Nov-14
Minimum investment amount
SGD 20,000
Interest rate payout
Year 1 to 4:
 
Fixed interest of 
 
Y1: 1.50% p.a
 
Y2: 1.50% p.a
 
Y3: 1.60% p.a
 
Y3: 1.60% p.a
 
 
 
Total interest: 6.20%

Please refer to the website for more details.