Optimizing your Savings Part 2

Missed part 1? <Click here>

Ok, I’ve consolidated my savings and have more than 100k.

What's next? What's next?

Well….. it depends?

Let’s go through each scenario:

I can’t split my salary.

The only other low-risk options are Tbills or Fixed Deposits

But if I can split my salary :D

Lucky you, you've crossed the main hurdle

I can credit another $1,800: OCBC

With OCBC, the other considerations are :

Can I spend another $500?
Do I have 100K to spare?

If I have less than $75,000,

Salary + Save = Effective interest rate of 3.25% p.a.
Salary + Save + Spend = Effective interest rate of 3.85% p.a.

If I have S$100,000, I can fulfil the following:

Salary + Save = Effective interest rate of 4.05% p.a.
Salary + Save + Spend = Effective interest rate of 4.65% p.a.

I can credit another $3,000: Standard Charted Bank

In SCB’s case, there’s no tiering of balances.

Spending 1.30% + salary credit 2.5% + 3 x Bill payment 0.33% = 4.13%

But if I can’t spend, that’s only 2.88%.

In this case, the ability to spend is quite important. So is it worth the hassle to track another card statement?

I can credit another $6000: Bank of China.

Lastly, in BOC’s rates, there's some tiering at the board rate but not much.

Also, one upgrade is that we can now apply online.
The minimum balance of $200 caught me off guard too.

The key ingredients are salary credit, 3x GIRO payments and the Board rate.

Below is the board rate for the following balances:

Between 5K to below 20K = 0.2%
20K but below 100K = 0.3%
At 100K = 0.4%

Assume I have at least 20k:

With spending: 4.2%
(salary credit 2.5% + 3 x bill payment 0.90% + board rate 0.3% + spending 0.50% )

Without spending: 3.7%
(salary credit 2.5% + 3 x bill payment 0.90% + board rate 0.3%)

I hope this helps :)

Please support me by following and liking my pages below:

Getting my house…

[Update: I have updated that part on the last 5% downpayment after clarifying] Following my last article , I went on to consider my housing options. In terms of HDB, there were 4 new MOP projects available but I couldn’t get over the fact that I would have to negotiate the price, secure the OTP before doing the Fengshui review. I could shortlist the units first, do the fengshui review. Then proceed with the viewing and negotiations, but the house might not be available anymore. So what did I just spend money for? My next options which were completed Condos near my house around the Geylang Lorong 30 – 40 and Tanjong Katong Road. They were mostly freehold and affordable. The only issue is that I'm not ready to commit everything now. The other issue was that the development size was normally quite small implying a lack of transactions on price clarity and higher maintenance fee. This brought me to the last option, which was to look at new launches. A...

Freehold premium worth meh?

After buying my house, I started reading up on property information and how the market works. Some of the objections I heard from my friends are: These days no one cares about Freehold(FH) any more. There’s no need to care about lease decay, you won’t stay that long anyway. So it got me thinking, is that really the case? Better Location If we look at HDBs, there is constant renewal by the GRCs to enhance their value, with better amenities, social support centres, connectivity and covered walkway. In terms of planning, it also makes sense to plan the train stations in a way that has the minimum impact on existing buildings. Next, creates land value through further development around the vicinity. That could mean that future development of the land parcels near the Station is likely going to be new HDBs or GLS > Condos In addition, selling the GLS at these locations would help attract developer interest and strengthen the reserves. It is essentially a p...

Tax Relief Strategies

Tax season has started. My friends were wondering if there was any way to maximise their relief. So… here goes To be fair, IRAS has created a self-service portal here . Once you check the boxes, all the reliefs that might apply will be shown. I’ll cover the ones that mattered more to me + one bonus for working mothers that’s off everyone’s radar. Common ones These are the popular ones that are highly publicised: CPF Cash Top up to MA/SA – up to $8000 CPF Cash Top for spouse/parents up to SA/RA – up to $8000 **it’s important if your parents are eligible MRSS top-up ** SRS Cash Top up – up to $15,300 Donations This is less talked about as people are quite private or humble about the charities they support. You do get 2.5X tax relief for donations made to local charities. I was sulky over this as I’m doing a child sponsorship overseas that doesn’t qualify. So on top of that, I do...

WhatisWhat

Search This Blog