From now until 31 July 2014, deposit S$25,000 of fresh funds into a 8-month SGD time deposit and enjoy an interest rate of 1.15% p.a. with Standard Chartered Bank.
Update
The promotion has been extended to 31 Aug 2014.
Please refer to the website for more details.
Thursday 24 July 2014
Maybank SGD Islamic Term Deposit Promotion
From now to 31 July 2014, enjoy up to 1.38% p.a. interest on your SGD Islamic Term Deposit with Maybank.
Please refer to the website for more details.
| Tenure |
Promotional Profit Rates
(% p.a.) | |
| Placement Amount |
S$25,000 – S$49,999
|
S$50,000 and above
|
| 12-month |
1.10
|
1.20
|
| 18-month |
1.18
|
1.28
|
| 24-month |
1.28
|
1.38
|
Please refer to the website for more details.
Bank of China SGD Time Deposit Promotion
From 2 July 2014 for a limited time period only, enjoy high promotional interest rates for 6-month and 9-month tenor as indicated below. Valid for fresh funds only.
*Rates are indicative only.
| Min. Deposit Amount (S$) | Interest Rate for 6-Month Tenor* | Interest Rate for 9-Month Tenor* |
| S$20,000 to S$49,999 | 1.15% p.a. | 1.20% p.a. |
| S$50,000 to S$99,999 | 1.25% p.a. | 1.28% p.a. |
| S$100,000 and above | 1.30% p.a. | 1.35% p.a. |
Please refer to the website for more details.
Tuesday 22 July 2014
CIMB Why Wait Fixed Deposit-i 25 for 25 Promotion
From now till 31 July 2014, you can apply for a CIMB Why Wait Fixed Deposit-i account, a Shariah-compliant account and place a minimum deposit of S$25,000 with fresh funds over a 12-month tenure and receive an additional S$25 and enjoy an effective profit rate of 1.15% p.a.
Unlike a normal Fixed Deposit account where you receive your interest only at maturity, the CIMB Why Wait Fixed Deposit-i account allows you to collect your returns in the form of profit upfront.
Please refer to the website for more details.
Unlike a normal Fixed Deposit account where you receive your interest only at maturity, the CIMB Why Wait Fixed Deposit-i account allows you to collect your returns in the form of profit upfront.
Please refer to the website for more details.
Philips Securities Junior Share Builders Plan
Want to give your little ones a head start in life? You may want to consider the Junior Share Builders Plan introduced by Philips where you can start from as little as S$100/month per counter to build a portfolio of shares from 20 blue chip counters below. No more procrastination to build an education fund or the downpayment to your little one's first property.
Handling fees of $6 are charged for <=2 counters and $10 for >=3 counters for total investment amount of S$1,000 or less. For investment amounts of >$1,000, 0.2% or $10 is charged. Dividend charges of 1% on net dividend subject to minimum of $1, capped at $50 is charged. For scrip dividends and other corporate action, $10 is charged.
Please refer to the website for more details.
For similar investment opportunities offered by OCBC and POSB, please refer to my previous posts.
- CapitaLand
- Keppel Corp
- SembMarine
- ST Engineering
- CapitaMall Trust
- Keppel Land
- SGX
- Starhub
- City Development
- NOL
- SIA
- STI ETF
- DBS
- OCBC
- SingTel
- UOB
- GLP
- Sabana REIT
- SPH
- Venture
Handling fees of $6 are charged for <=2 counters and $10 for >=3 counters for total investment amount of S$1,000 or less. For investment amounts of >$1,000, 0.2% or $10 is charged. Dividend charges of 1% on net dividend subject to minimum of $1, capped at $50 is charged. For scrip dividends and other corporate action, $10 is charged.
Please refer to the website for more details.
For similar investment opportunities offered by OCBC and POSB, please refer to my previous posts.
Monday 21 July 2014
UOB 13-Month Singapore Dollar Fixed Deposit
You can earn 1.08% p.a. interest on a 13-Month Singapore Dollar Fixed Deposit at UOB with minimum fresh funds of S$20,000. This promotion is valid from 1 to 31 July 2014.
Please refer to the website for more details.
Please refer to the website for more details.
CPF Life
CPF Life is a national annuity scheme that allows members to receive a monthly income for life, starting from his drawdown age (DDA). This is an improvement over the Minimum Sum Scheme as members have a high chance of outliving the limited payouts due to Singapore's high life expectancy.
An article written by Goh Eng Yeow and published on the Straits Times on 1 June 2014 explores the choice between CPF Life Standard and Basic Plan.
The key differences of the plans are that under the default plan, Life Standard Plan, the monthly payouts are higher while the bequest left to beneficiaries are lower. Under the Life Basic Plan, the monthly payouts are lower but the bequest left to beneficiaries are higher.
Depending on your year of birth, you will either have to apply to join CPF Life or be automatically placed on it.
Birth Year Option
1954 or earlier You can apply to join CPF Life
1955 - 1957 You can apply to join CPF Life when you reach 55 years old
1958 and later If you have >= $40,000 in your RA at 55 or >= $60,000 in your RA at 65,
you will automatically be included
If you have < $40,000 in your RA at 55 or < $60,000 in your RA at 65,
you can apply to join CPF Life
where RA = CPF Retirement Account which is created when we turn 55 by transferring savings from our CPF Ordinary Account (OA), Special Account (SA) and then Medisave Account (MA), where applicable.
The current DDA for those born in 1954 or later is 65 years old. For a male born in 1954, the monthly payout under the Standard Life Plan is about $1,000 while under the Basic Life Plan is about $930. For a female born in 1954, the monthly payout under the Standard Life Plan is about $920 while under the Basic Life Plan is about $900. The reason why monthly payouts for female is lower is due to longer life expectancy of females. The life expectancy of Singaporean females is about 85 years while for males is about 80 years in 2013.
Ultimately, which plan one chooses to go with is purely based on personal circumstances and preferences. If you are single and without beneficiaries, you can choose the Standard Plan to get a higher monthly payout. However, if you have the intention of leaving a more substantial bequest to your beneficiaries, the logical plan to choose is the Basic Plan.
What will you choose? The Standard Plan or the Basic Plan? What will be your main considerations?
Please refer to the CPF website for more details. You may also use the CPF Life Payout Estimator to estimate your monthly payout and bequest. For other information on growing old in Singapore, please also refer to the Singapore SilverPages created by the Government.
An article written by Goh Eng Yeow and published on the Straits Times on 1 June 2014 explores the choice between CPF Life Standard and Basic Plan.
The key differences of the plans are that under the default plan, Life Standard Plan, the monthly payouts are higher while the bequest left to beneficiaries are lower. Under the Life Basic Plan, the monthly payouts are lower but the bequest left to beneficiaries are higher.
Depending on your year of birth, you will either have to apply to join CPF Life or be automatically placed on it.
Birth Year Option
1954 or earlier You can apply to join CPF Life
1955 - 1957 You can apply to join CPF Life when you reach 55 years old
1958 and later If you have >= $40,000 in your RA at 55 or >= $60,000 in your RA at 65,
you will automatically be included
If you have < $40,000 in your RA at 55 or < $60,000 in your RA at 65,
you can apply to join CPF Life
where RA = CPF Retirement Account which is created when we turn 55 by transferring savings from our CPF Ordinary Account (OA), Special Account (SA) and then Medisave Account (MA), where applicable.
The current DDA for those born in 1954 or later is 65 years old. For a male born in 1954, the monthly payout under the Standard Life Plan is about $1,000 while under the Basic Life Plan is about $930. For a female born in 1954, the monthly payout under the Standard Life Plan is about $920 while under the Basic Life Plan is about $900. The reason why monthly payouts for female is lower is due to longer life expectancy of females. The life expectancy of Singaporean females is about 85 years while for males is about 80 years in 2013.
Ultimately, which plan one chooses to go with is purely based on personal circumstances and preferences. If you are single and without beneficiaries, you can choose the Standard Plan to get a higher monthly payout. However, if you have the intention of leaving a more substantial bequest to your beneficiaries, the logical plan to choose is the Basic Plan.
What will you choose? The Standard Plan or the Basic Plan? What will be your main considerations?
Please refer to the CPF website for more details. You may also use the CPF Life Payout Estimator to estimate your monthly payout and bequest. For other information on growing old in Singapore, please also refer to the Singapore SilverPages created by the Government.
OCBC Blue Chip Investment Plan (BCIP)
With a minimum of S$100 per month, you can start accumulating 19 blue chip shares listed on the SGX via OCBC's Blue Chip Investment Plan (BCIP). This helps you to avoid timing the market by using the dollar cost averaging method and is very convenient as you can manage your investments using OCBC Online Banking. Whether it is for your children's education or your retirement funds, you can finally embark on your investment journey by starting small.
For the buying and selling of shares, a fee of 0.30% of the investment amount or S$5, whichever is higher is charged for each transaction. The minimum of S$5 fee is waived till September 2014.
You can invest using either cash or SRS. For SRS, an additional S$0.54 processing fee per counter is charged.
The 19 blue chip shares included are as follows :
Please refer to the website for more details.
For the buying and selling of shares, a fee of 0.30% of the investment amount or S$5, whichever is higher is charged for each transaction. The minimum of S$5 fee is waived till September 2014.
You can invest using either cash or SRS. For SRS, an additional S$0.54 processing fee per counter is charged.
The 19 blue chip shares included are as follows :
- CapitaLand Limited
- CapitaMall Trust
- Comfort Delgro Corporation Limited
- DBS Group Holdings Limited
- Global Logistic Properties Limited
- Keppel Corporation Limited
- Olam International Limited
- Oversea-Chinese Banking Corporation Limited
- SembCorp Industries Limited
- SembCorp Marine Ltd
- Singapore Airlines Limited
- Singapore Exchange Limited
- Singapore Press Holdings Limited
- Singapore Technologies Engineering Limited
- Singapore Telecommunications Ltd
- StarHub Ltd
- United Overseas Bank Limited
- Wilmar International Limited
- Nikko AM Singapore STI ETF (Exchange Traded Fund)
Please refer to the website for more details.
Sunday 20 July 2014
POSB Invest-Saver
POSB Invest-Saver is a Regular Savings Plan (RSP) that allows you to invest on a monthly basis via a GIRO arrangement. You will be investing in Nikko AM Singapore STI Exchange Traded Fund (ETF) which means that you will be investing in the 30 blue-chip companies in the STI Index (based on market capitalization).
The benefits are many. It is affordable, convenient, flexible and helps you to build up long term savings. You can start investing with as little as S$100 at 1% sales charge per transaction. No fees will be charged for selling the units. No CDP or securities trading account are required. You have the convenience of starting and managing your investments at any of the ATMs islandwide. You may buy and sell units anytime. There is no lock-in period.
No more excuse for not starting to build your nest egg due to lack of huge capital. Always remember that a journey of a thousand miles begins with a single step.
Please refer to the website for more details.
The benefits are many. It is affordable, convenient, flexible and helps you to build up long term savings. You can start investing with as little as S$100 at 1% sales charge per transaction. No fees will be charged for selling the units. No CDP or securities trading account are required. You have the convenience of starting and managing your investments at any of the ATMs islandwide. You may buy and sell units anytime. There is no lock-in period.
No more excuse for not starting to build your nest egg due to lack of huge capital. Always remember that a journey of a thousand miles begins with a single step.
Please refer to the website for more details.
Saturday 19 July 2014
8 Things to Know about MediShield Life
MediShield Life promises "Better Protection. For All. For Life." So how will the man in the street like us benefit from this very bold move of the Singapore Government to achieve universal healthcare coverage?
1. Covers Everyone
All Singapore Citizens and Permanent Residents
Even if you have pre-existing conditions
Even if you have been rejected by insurers
Those with pre-existing conditions to pay higher premiums reflective of their higher risks, at an additional 30% for a period of 10 years
Currently insured Singaporeans pay no more than 3% increase from current premiums as a result of universal coverage
Everyone shares in the national risk pool and plays a part in supporting pooled healthcare costs
2. Protects You for Life
Previously up to age 90.
Singapore’s life expectancy is one of the highest in the world. Average life expectancy stood at age 82 in 2013. Women live longer to age 85 and men to 80 according to data from Department of Statistics Singapore. If history has anything to go by, we could be expected to live to the ripe old age of 120 by the time our turn comes.
3. Better Benefits
MediShield Life pays more of your bills. You pay less.
Remove lifetime claim limit of S$300,000
Increase annual claim limit by 40%, from S$70,000 to S$100,000
Increase the daily claim limits for normal wards and ICU wards by up to 55%
Increase the claim limits for surgical procedures by between 25% and 93%
Increase the claim limits for outpatient cancer chemotherapy and radiotherapy treatments
Increase daily claim limits for community hospitals by 40%, from $250 and $350
Lower co-insurance rates from current range of 10 - 20% to 3 - 10%
Collectively, these enhancements will lead to a higher payout from Medishield Life and patients will pay less.
4. Premiums will Increase
Better benefits = Higher premiums
Pay more when working = Pay less in retirement
Annual premiums range from $130 to $1,530 dependant on age as compared to previous $50 to $1,190 up to age 90.
5. Premiums fully payable by Medisave
At least this will alleviate any worries of Singaporeans having to pay this by cash out of their own pocket
6. Government will provide support
Premium Subsidies
7. No one will lose coverage due to financial need
Additional financial assistance for those who cannot afford premiums even after subsidies
8. No need to apply
MediShield Life will start at end 2015
Automatic Inclusion for Singapore Citizens and Permanent Residents
Conclusion
In all, we have to applaud this bold healthcare reform proposed by the Government given the ageing population and the changing demographics going forward. This will likely result in an increase in healthcare costs but this is the price that we have to pay if we want everybody to have access to affordable healthcare regardless of health and financial situation. The society has to be mature enough to accept cross subsidisation across different groups for the greater good. However, the sustainability of such a model may be questionable as it may become a huge burden to the younger generation. Currently, we have a dependency ratio of six working adults to one elderly citizen above age 65. This dependency ratio is expected to fall to two working adults to one elderly citizen by 2030 according to the Population White Paper 2013. It will be up to the Government to tweak its policies so that a fine balance can be achieved.
Please refer to the website for more details.
1. Covers Everyone
All Singapore Citizens and Permanent Residents
Even if you have pre-existing conditions
Even if you have been rejected by insurers
Those with pre-existing conditions to pay higher premiums reflective of their higher risks, at an additional 30% for a period of 10 years
Currently insured Singaporeans pay no more than 3% increase from current premiums as a result of universal coverage
Everyone shares in the national risk pool and plays a part in supporting pooled healthcare costs
2. Protects You for Life
Previously up to age 90.
Singapore’s life expectancy is one of the highest in the world. Average life expectancy stood at age 82 in 2013. Women live longer to age 85 and men to 80 according to data from Department of Statistics Singapore. If history has anything to go by, we could be expected to live to the ripe old age of 120 by the time our turn comes.
MediShield Life pays more of your bills. You pay less.
Remove lifetime claim limit of S$300,000
Increase annual claim limit by 40%, from S$70,000 to S$100,000
Increase the daily claim limits for normal wards and ICU wards by up to 55%
Increase the claim limits for surgical procedures by between 25% and 93%
Increase the claim limits for outpatient cancer chemotherapy and radiotherapy treatments
Increase daily claim limits for community hospitals by 40%, from $250 and $350
Lower co-insurance rates from current range of 10 - 20% to 3 - 10%
Collectively, these enhancements will lead to a higher payout from Medishield Life and patients will pay less.
4. Premiums will Increase
Better benefits = Higher premiums
Pay more when working = Pay less in retirement
Annual premiums range from $130 to $1,530 dependant on age as compared to previous $50 to $1,190 up to age 90.
5. Premiums fully payable by Medisave
At least this will alleviate any worries of Singaporeans having to pay this by cash out of their own pocket
6. Government will provide support
Premium Subsidies
- For Pioneer Generation
- For Lower-income
- For Middle-income
- For All Singaporeans up to 2018
- For Pioneer Generation for Life
- For those aged between 55 to 64 in 2014 (5 years)
7. No one will lose coverage due to financial need
Additional financial assistance for those who cannot afford premiums even after subsidies
8. No need to apply
MediShield Life will start at end 2015
Automatic Inclusion for Singapore Citizens and Permanent Residents
Conclusion
In all, we have to applaud this bold healthcare reform proposed by the Government given the ageing population and the changing demographics going forward. This will likely result in an increase in healthcare costs but this is the price that we have to pay if we want everybody to have access to affordable healthcare regardless of health and financial situation. The society has to be mature enough to accept cross subsidisation across different groups for the greater good. However, the sustainability of such a model may be questionable as it may become a huge burden to the younger generation. Currently, we have a dependency ratio of six working adults to one elderly citizen above age 65. This dependency ratio is expected to fall to two working adults to one elderly citizen by 2030 according to the Population White Paper 2013. It will be up to the Government to tweak its policies so that a fine balance can be achieved.
Please refer to the website for more details.
Friday 18 July 2014
Child Development Account (CDA)
The Baby Bonus Child Development Account (CDA) is a special savings account that can be opened with OCBC or Standard Chartered Bank for each eligible newborn where the Singapore Government will match the savings amount dollar-for-dollar up to a cap of S$6,000 for 1st and 2nd child, S$12,000 for 3rd and 4th child and S$18,000 for 5th child and beyond for children born on or after 26 Aug 2012. The Government has been giving out such cash incentives to encourage procreation among the citizens ever since 2008.
OCBC is offering interest rates of 0.5% p.a. for the first S$20,000 deposit and 0.8% p.a. for amounts above S$20,000. If you can commit to saving at least S$50 per month, you can also sign up for CDA Extra account where you will earn 0.8% p.a. right from the beginning.
If you have a monthly family income of less than S$4,500 and deposit a minimum of S$50 into the CDA account over a period of 6 months, you will receive co-savings of S$250, that is S$100 from OCBC and $150 matching contribution from the Government, provided that the co-savings cap has not been met.
Over at StanChart, they are offering 0.5% p.a. on deposits in the CDA account and 0.3% p.a. above board rates for Singapore Dollar Time Deposits using CDA funds. Also, 0.3% p.a. interest on one designated family savings account under the name of the Trustee of the CDA account holder.
Please refer to the Singapore Government's Baby Bonus, OCBC and Standard Chartered Bank websites for more details.
OCBC is offering interest rates of 0.5% p.a. for the first S$20,000 deposit and 0.8% p.a. for amounts above S$20,000. If you can commit to saving at least S$50 per month, you can also sign up for CDA Extra account where you will earn 0.8% p.a. right from the beginning.
If you have a monthly family income of less than S$4,500 and deposit a minimum of S$50 into the CDA account over a period of 6 months, you will receive co-savings of S$250, that is S$100 from OCBC and $150 matching contribution from the Government, provided that the co-savings cap has not been met.
Over at StanChart, they are offering 0.5% p.a. on deposits in the CDA account and 0.3% p.a. above board rates for Singapore Dollar Time Deposits using CDA funds. Also, 0.3% p.a. interest on one designated family savings account under the name of the Trustee of the CDA account holder.
Please refer to the Singapore Government's Baby Bonus, OCBC and Standard Chartered Bank websites for more details.
Citibank InterestPlus Savings Account
These days, banks want to encourage customers to consolidate their banking needs with them instead of using different banks for different purposes. Citibank is also jumping on the bandwagon by offering up to 2.5% p.a. bonus interest on the first S$50,000 in your account if you insure, invest and spend with them.
1) Insure and earn 1.2% p.a. bonus interest
If you insure with S$250 per month for 12 months or single premium of S$25,000
2) Invest and earn 1.2% p.a. bonus interest
If you invest S$250 per month for 12 months on a regular savings plan or lump sum of S$25,000 in unit trusts
3) Spend and earn 0.1% p.a. bonus interest
If you spend S$25 on your Citibank Credit Card
Earn an additional 1% p.a. if you take up a Citibank home loan of at least S$250,000
From now till 31 Dec 2014, receive S$150 shopping vouchers if you open an account and fund it with S$50,000 and complete a Personal Financial Report and Investment Risk Profile with a Personal Banker. If you fund it with S$10,000, you can receive S$20 shopping vouchers as a Welcome gift.
Please refer to the website for more details.
1) Insure and earn 1.2% p.a. bonus interest
If you insure with S$250 per month for 12 months or single premium of S$25,000
2) Invest and earn 1.2% p.a. bonus interest
If you invest S$250 per month for 12 months on a regular savings plan or lump sum of S$25,000 in unit trusts
3) Spend and earn 0.1% p.a. bonus interest
If you spend S$25 on your Citibank Credit Card
Earn an additional 1% p.a. if you take up a Citibank home loan of at least S$250,000
From now till 31 Dec 2014, receive S$150 shopping vouchers if you open an account and fund it with S$50,000 and complete a Personal Financial Report and Investment Risk Profile with a Personal Banker. If you fund it with S$10,000, you can receive S$20 shopping vouchers as a Welcome gift.
Please refer to the website for more details.
Wednesday 9 July 2014
OCBC SGD Time Deposit Promotion
For a minimum deposit of S$5,000, enjoy up to 1.05% p.a. interest with OCBC for tenure of 12- month or 18-month.
Tenure Minimum placement amount Interest Rate
12-Month S$50,000 - S$999,999 0.92% p.a.
18-Month S$5,000 - S$50,000 1.05% p.a.
The placement amount must be in fresh funds only.
Please refer to the website for more details.
Sunday 6 July 2014
Standard Chartered e$aver Account Promotion
From now till 31 Aug 2014, earn up to 1.2% p.a. interest on incremental fresh funds deposited into your e$aver account. It comes with no minimum deposit requirement and no lock-in period.
Deposit Balance Prevailing Interest Bonus Interest Total Interest
Rate (A) Rate (B) Rate (A)+(B)
Less than S$50,000 0.10% p.a. 1.05% p.a.
S$50,000 to less than S$200,000 0.15% p.a. 0.95% p.a. 1.10% p.a.
S$200,000 and above 0.25% p.a. 1.20% p.a.
Please refer to the website for more details.
Deposit Balance Prevailing Interest Bonus Interest Total Interest
Rate (A) Rate (B) Rate (A)+(B)
Less than S$50,000 0.10% p.a. 1.05% p.a.
S$50,000 to less than S$200,000 0.15% p.a. 0.95% p.a. 1.10% p.a.
S$200,000 and above 0.25% p.a. 1.20% p.a.
Please refer to the website for more details.
Saturday 5 July 2014
UOB National Day Savings Promotion
UOB has a new promotion for fresh funds deposited into Savings and Uniplus Accounts from 1 July till 31 Aug 2014. On top of prevailing rates, the following bonus rates will be applied, resulting in total interest rates of up to 1.2% p.a.
Fresh funds Bonus Rate (p.a.) Prevailing Rates (p.a.)
S$15,000 to S$50,000 0.7% 0.05%
Above S$50,000 to S$100,000 0.9% 0.05%
Above S$100,000 to S$350,000 1.1% 0.05%
Above S$350,000 1.1% 0.1%
Early birds will be rewarded with a gift of 1.0g PAMP 999.9 Gold Minted Ingot for fresh funds of S$80,000 subject to funds being earmarked for a period of 2 months.
Please refer to the website more details.
Fresh funds Bonus Rate (p.a.) Prevailing Rates (p.a.)
S$15,000 to S$50,000 0.7% 0.05%
Above S$50,000 to S$100,000 0.9% 0.05%
Above S$100,000 to S$350,000 1.1% 0.05%
Above S$350,000 1.1% 0.1%
Early birds will be rewarded with a gift of 1.0g PAMP 999.9 Gold Minted Ingot for fresh funds of S$80,000 subject to funds being earmarked for a period of 2 months.
Please refer to the website more details.
Financial Planning Made Easy
As the old adage goes, if you fail to plan, you plan to fail. So, it goes to show how important planning is if you want to reach your financial goals. I think no one wants to depend on social assistance when we reach our sunset years.
So, how do you make sure you avoid these financial woes?
1) Pay Yourself First
For a start, you should open several bank accounts for various purposes so that you can preset GIRO amounts to be transferred to your savings and spending accounts. This will result in discipline to save which is sometimes lacking in most people. Afraid that your yearly overseas trip or that designer bag is going to blow your budget? You can set aside an amount every month to a "special treat" account with which you can dip into for your overseas vacation or extravagant purchases and make sure you don't have to touch other accounts. A rule of thumb is to make sure you save at least 20% of your income and to keep 6 months of expenses as an emergency fund.
2) Pay off Debts
You should list down all your debts and start prioritising and paying off those that incur the highest interest. For housing loans with low interest, if you are able to make investments which can exceed the interest that you incurring on the loan, you should go ahead to do that and earn the spread.
3) Buy Insurance
Make sure you are adequately covered especially if you have dependents so that they do not have to suffer unnecessary financial hardship if the unforeseen happens. For this, you can purchase a term life insurance. The cheapest in the market would be the SAF Aviva Term Life policy available to NSMen and their spouses. Maximum coverage is S$1m. Everyone needs a hospitalisation and surgical (H&S) insurance due to increasing medical costs. At a minimum, a basic MediShield plan should be considered. The Singapore government is trying to come up with MediShield Life which will cover Singaporeans for life. The premiums will definitely increase with this change for younger Singaporeans but this will ensure that elderly SIngaporeans enjoy affordable coverage.
4) Live within / below your means
It might be tough for some people but for those who can do it, the delayed gratification can save you from rude shocks like retrenchment, family emergencies. In this age of consumerism, this may be easier said than done but those who can do it will definitely have the last laugh.
5) Make Investments
Rule of 72 states that you can double your money in 7 years if your investments yield 10% or 10 years if your investments yield 7%. If you are not the financial saavy type, you can always invest in low cost ETFs in the market. That is what Warren Buffett instructed his wife to do if the Oracle of Omaha is no longer around. Remember the Rules of Investment of the Man - Rule #1 : Do not lose any money; Rule #2: Refer to Rule #1.
6) Have a Clear Financial Goal
Make use of tools on the CPF website and MoneySense website to help you. Assess how much you need after retirement and calculate how much you need your nest egg to grow to. That way, you will not be too far off in terms of your goals.
7) Make your Will
And finally, in order to be clear on the distribution of your estate upon your demise, you should consult with your lawyers to draft your will. You can also do it yourself but the risk is that the will might be ineffective or invalid in the eyes of the law. Costs are S$200 onwards depending on the complexity. Do be reminded that CPF funds, joint tenancy property, insurance and joint accounts are not included. In the case of CPF funds and insurance, you need to nominate your beneficiary whereas for joint tenancy property and joint accounts, it goes to the surviving owner.
So, how do you make sure you avoid these financial woes?
1) Pay Yourself First
For a start, you should open several bank accounts for various purposes so that you can preset GIRO amounts to be transferred to your savings and spending accounts. This will result in discipline to save which is sometimes lacking in most people. Afraid that your yearly overseas trip or that designer bag is going to blow your budget? You can set aside an amount every month to a "special treat" account with which you can dip into for your overseas vacation or extravagant purchases and make sure you don't have to touch other accounts. A rule of thumb is to make sure you save at least 20% of your income and to keep 6 months of expenses as an emergency fund.
2) Pay off Debts
You should list down all your debts and start prioritising and paying off those that incur the highest interest. For housing loans with low interest, if you are able to make investments which can exceed the interest that you incurring on the loan, you should go ahead to do that and earn the spread.
3) Buy Insurance
Make sure you are adequately covered especially if you have dependents so that they do not have to suffer unnecessary financial hardship if the unforeseen happens. For this, you can purchase a term life insurance. The cheapest in the market would be the SAF Aviva Term Life policy available to NSMen and their spouses. Maximum coverage is S$1m. Everyone needs a hospitalisation and surgical (H&S) insurance due to increasing medical costs. At a minimum, a basic MediShield plan should be considered. The Singapore government is trying to come up with MediShield Life which will cover Singaporeans for life. The premiums will definitely increase with this change for younger Singaporeans but this will ensure that elderly SIngaporeans enjoy affordable coverage.
4) Live within / below your means
It might be tough for some people but for those who can do it, the delayed gratification can save you from rude shocks like retrenchment, family emergencies. In this age of consumerism, this may be easier said than done but those who can do it will definitely have the last laugh.
5) Make Investments
Rule of 72 states that you can double your money in 7 years if your investments yield 10% or 10 years if your investments yield 7%. If you are not the financial saavy type, you can always invest in low cost ETFs in the market. That is what Warren Buffett instructed his wife to do if the Oracle of Omaha is no longer around. Remember the Rules of Investment of the Man - Rule #1 : Do not lose any money; Rule #2: Refer to Rule #1.
6) Have a Clear Financial Goal
Make use of tools on the CPF website and MoneySense website to help you. Assess how much you need after retirement and calculate how much you need your nest egg to grow to. That way, you will not be too far off in terms of your goals.
7) Make your Will
And finally, in order to be clear on the distribution of your estate upon your demise, you should consult with your lawyers to draft your will. You can also do it yourself but the risk is that the will might be ineffective or invalid in the eyes of the law. Costs are S$200 onwards depending on the complexity. Do be reminded that CPF funds, joint tenancy property, insurance and joint accounts are not included. In the case of CPF funds and insurance, you need to nominate your beneficiary whereas for joint tenancy property and joint accounts, it goes to the surviving owner.
DBS Multiplier Programme
DBS is offering $150 cash to all eligible customers who open a DBS Multiplier Account between 24 May to 30 June 2014 and deposit in S$50,000 of fresh funds by 31 July 2014.
The DBS Multiplier Programme is aimed at rewarding customers for consolidating their banking needs with DBS. You can earn interests up to 2.08% per year on the first S$50,000 of your savings (or S$1,040 per year) if any or all of these add up to at least S$7,500 per month:
1. Your Salary is credited to a DBS / POSB account
2. Your Credit Card spendings with DBS / POSB Credit Cards
3. Your Home Loan from DBS / POSB
4. Your Investment Dividends are credited to a DBS / POSB account
Total Monthly Cashflow Higher Interest Rate (p.a.)
S$7,500 to < S$10,000 0.98%
S$10,000 to <S$12,500 1.28%
S$12,500 to <S$15,000 1.48%
S$15,000 to <S$20,000 1.68%
S$20,000 and above 2.08%
Things to note are:
1. Fall below fee of S$5 will be charged if average daily balance falls below S$10,000
2. Early closure fees of S$30 if account is closed within 6 months
3. No lock-in period
The target customers of DBS for this product are mainly those who high credit card spenders, investment savvy folks or have home loans with DBS to fulfil the basic criteria set. As compared to the OCBC360 account which is catered more for the man in the street, this is somehow less attractive due to its tiered interest and more stringent criteria.
Please refer to the website for more details.
Update @ 5 July 2014
Receive S$150 credited to your account if you open a DBS Multiplier Account between 1 July till 8 Aug and deposit S$50,000 of fresh funds to your account by 31 Aug 2014.
Please refer to the website for more details.
The DBS Multiplier Programme is aimed at rewarding customers for consolidating their banking needs with DBS. You can earn interests up to 2.08% per year on the first S$50,000 of your savings (or S$1,040 per year) if any or all of these add up to at least S$7,500 per month:
1. Your Salary is credited to a DBS / POSB account
2. Your Credit Card spendings with DBS / POSB Credit Cards
3. Your Home Loan from DBS / POSB
4. Your Investment Dividends are credited to a DBS / POSB account
Total Monthly Cashflow Higher Interest Rate (p.a.)
S$7,500 to < S$10,000 0.98%
S$10,000 to <S$12,500 1.28%
S$12,500 to <S$15,000 1.48%
S$15,000 to <S$20,000 1.68%
S$20,000 and above 2.08%
Things to note are:
1. Fall below fee of S$5 will be charged if average daily balance falls below S$10,000
2. Early closure fees of S$30 if account is closed within 6 months
3. No lock-in period
The target customers of DBS for this product are mainly those who high credit card spenders, investment savvy folks or have home loans with DBS to fulfil the basic criteria set. As compared to the OCBC360 account which is catered more for the man in the street, this is somehow less attractive due to its tiered interest and more stringent criteria.
Please refer to the website for more details.
Update @ 5 July 2014
Receive S$150 credited to your account if you open a DBS Multiplier Account between 1 July till 8 Aug and deposit S$50,000 of fresh funds to your account by 31 Aug 2014.
Please refer to the website for more details.
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