HardwareZone Forums Money Mind Update: Community Insights and Analysis (25 Nov – 23 Dec 2024)

Executive Summary

Recent HardwareZone forum discussions surrounding Money Mind have focused on navigating various high-yield savings accounts, fixed deposits, and investment options in Singapore. Users are actively comparing promotional interest rates from different banks like CIMB, Maybank, HSBC, and Maribank, often engaging in “merry-go-round” strategies to maximize returns. Concerns about SMS notifications being phased out and the complexity of promotional terms and conditions are also prominent. Key data points include a *3.2% interest rate offered by CIMB for its FastSaver account and a 3.02%* cut-off yield for the latest 6-month T-bill. The community also discussed the merits of unit trusts versus ETFs, with a strong emphasis on the importance of understanding fees and investment strategies.

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Key Developments

Promotional Savings Accounts

Users are actively seeking the best promotional interest rates offered by various banks. Maribank offered a *3.5% p.a. interest for a 3-month period, requiring a top-up of SGD 20,000 by late November 2024. CIMB’s FastSaver account offered a 3.2% p.a. interest for December 2024 to February 2025, but with specific conditions regarding incremental balance and end-of-month requirements. Maybank’s iSavvy account was also a popular choice, with a 3.2%* rate and faster bonus payout. These promotions often involve a “merry-go-round” strategy where users move funds between banks to take advantage of different offers.

“mari savings 1k to 20k = SGD 3 reward for holding 3 months until 28 feb 2025 20k and above = SGD 48 reward, same holding date must deposit fresh money within 25 26 27 nov” –

Fixed Deposit Rate Changes

Fixed deposit (FD) rates have been fluctuating across different banks. RHB increased its FD rates to *3% for tenors ranging from 3 to 18 months, matching the highest rates offered by some other banks. Maybank cut its promotional interest rates effective December 2, 2024. DBS also revised its fixed deposit rates downwards, with a 6-month online FD now offering 2.45%*, down from previous higher rates. Users are closely monitoring these changes and adjusting their strategies accordingly.

“Recently some banks are jacking up home loan interest rate to 2.7% p.a. and above… Maybank just jacked up 2yr fixed rate loan to 2.70% p.a. in past week or so (from previous offering of 2.50% p.a.).” –

CPF Matters

Discussions around CPF included considerations for topping up Medisave and the Special Account. Users noted that the Full Retirement Sum (FRS) is projected to increase to *SGD 228,200 by 2027, with an annual growth rate of around 3.5%*. There were also conversations about the Basic Healthcare Sum (BHS) and its historical growth rates. Some users debated whether to use their Ordinary Account (OA) funds for housing repayment or to invest them elsewhere.

“For CPF transfers of existing CPF savings, you will start earning interest in your account from this month. However, if the CPF savings are fresh injections, it will start earning interest in your account from the next month.” – —

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Community Insights

User Experiences

Users shared various experiences with bank promotions, highlighting both successes and frustrations. Some users reported difficulty in understanding the complex terms and conditions associated with promotional accounts, while others expressed annoyance at the limited availability of some promotions (e.g., “first 10,000 eligible customers”). There were also reports of inconsistent information from bank customer service officers (CSOs), which led some to call multiple times to verify details. A few users mentioned encountering issues with large transfers being blocked by banks, requiring manual intervention.

“Saw the notification on my app, auto close it when I read “The first 10,000 Eligible Customers”. Still didn’t get the notification, guess it is for selected users only ba.”

“yes, sometimes they can be wrong best is to call few times, different CSO and you see if they are sharing the correct information” –

Tips and Recommendations

Forum members provided practical advice on navigating the complex world of Singaporean personal finance. One recurring tip was to carefully read all terms and conditions (T&Cs) before participating in any bank promotion. Users recommended setting up multiple accounts with different banks to optimize returns through the “merry-go-round” strategy. It was also suggested to use online platforms like Endowus and Interactive Brokers (IBKR) for low-cost ETF investing, and to avoid high-fee unit trusts offered by relationship managers (RMs). The community also emphasized the importance of tracking Average Daily Balance (ADB) and meeting month-end balance requirements for promotional interest.

“Please always read the TnC no matter how freaking long it is especially for financial stuff. If you want simple one, just go SC ESaver ba, easier TnC” –
“To maximise bonus interest, put both HSBC promos together & think about your transfer in & transfer-out strategy in conjunction with perhaps another bank promotion. It is important to read all banks’ t&cs to see what they say about ‘fresh funds’.” – —

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Important Considerations

Several important considerations emerged from the discussions. Users warned against relying solely on bank RMs for investment advice, suggesting that they are primarily focused on selling products that benefit the bank. The community emphasized the need for careful research and self-education on investment options, highlighting that managing one’s own portfolio can lead to significant cost savings. There was concern regarding the phasing out of SMS notifications by banks, and the potential security risks with email and in-app notifications. Users also expressed concerns about the limitations of some promotional accounts, such as the “first 10,000 eligible customers” clause.

“A 3% sale charge is basically daylight robbery, pls dont be an idiot and give away your money for free. u also seems to have a few misconceptions 1. u assume your RM is savvy about investments, but i can assure you that he is not.” –
“Removing sms notification by banks is a directive by the govt to reduce fraud u can keep on complaining, but at some point in time, u have to adapt and adopt to the new norm.” – —

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Looking Ahead

The forum expects ongoing fluctuations in interest rates from various banks, prompting users to remain vigilant and adaptable. Many are anticipating new promotional offers in the new year, particularly around Chinese New Year. There is also anticipation for local banks to start offering fixed deposits using CPF funds again in January or February. The community expects banks to continue shifting away from SMS notifications and towards in-app and email notifications, which may cause some inconvenience for users not always connected to the internet. The discussion also highlights the need for users to be proactive in addressing any issues with interest payments or promotional eligibility.

“I also expect the local banks to start offering FD using CPF funds again in Jan/Feb.” –
“The moment you deposit said 5k, their system will flag you as joining the promo. Question now is, was your withdrawal on the same day?” –