HardwareZone Forum Personal Finance Update: Community Insights and Analysis (05 Dec – 02 Jan 2025)

Executive Summary

The HardwareZone Personal Finance forum has seen significant activity, with users actively discussing and comparing various financial products and strategies. Key topics include high-yield savings accounts, fixed deposits (FDs), Singapore Savings Bonds (SSBs), T-bills, and investment options. The discussions highlight a strong focus on maximizing returns while managing risks, with users sharing personal experiences and offering practical advice. A notable trend is the rapid fluctuation of interest rates offered by banks, leading to a constant search for the most competitive deals.

Recent discussions revealed a cut-off yield of 3.02% p.a. for the 6-month T-bill, which was higher than previous issues, and a significant reduction in rates for DBS and OCBC FDs. Users also actively explored new offerings from MoneyOwl by Temasek Trust and the impact of SDIC coverage on various accounts. The forum also saw users sharing detailed experiences with various bank promotions and the challenges in meeting specific requirements.

Key Developments

T-bill and SSB Rates

The 6-month T-bill auction on 19 December 2024 resulted in a cut-off yield of 3.02% p.a., a surprising increase compared to previous issues. This prompted many users to consider T-bills as an alternative to declining FD rates. > I went to apply for Tbill instead with that 200k liao. 3.02% and 3% sama sama in the end. – ctan84 (19 Dec 2024) The SSB February 2025 projections show a gradual increase in interest rates, averaging 2.71% p.a. over 10 years, making it a viable option for long-term savings.

Fixed Deposit (FD) Rate Changes

DBS revised their fixed deposit rates on 10 December 2024, dropping from 3.2% to 2.45%. OCBC also reduced their FD rates, with online rates falling to 2.30% p.a. for 12-month tenures. These changes led to a scramble for higher-yielding alternatives, particularly among users seeking safe and stable returns. > From 3.2% drop to 2.45% – jess_sy (10 Dec 2024) HL Bank’s 3.2% FD promotion was popular but ended quickly, with users reporting difficulties applying online due to high traffic, and eventually, the offer being removed from their website on 30 December 2024.

Savings Account Promotions

CIMB continued to offer a competitive interest rate of 3.2% p.a. for their FastSaver account, attracting users seeking higher yields. HSBC’s Everyday+ Rewards program saw some users experiencing delays in receiving their bonus interest, leading to inquiries with customer service. Several users discussed GXS Bank’s offerings, with a base interest of 2.68% and a higher rate of 3.18% for their boost pockets (3-month lock-in). Maribank’s interest rate was cut to 2.5% on 1 January 2025.

MoneyOwl by Temasek Trust Relaunch

MoneyOwl by Temasek Trust relaunched with a focus on social impact, offering online financial advice and solutions. They now offer access to Amundi unit trusts on the POEMS platform with a low expense ratio of 0.1% p.a., which is attractive to users looking for cost-effective investment options. > Important update for those on poems platform, you now have access to Amundi MSCI World S$ denominated, 0.1% expense ratio. S$ denominated and lower expense ratio than many ETF. Win liao. – limster (06 Dec 2024) This move led to discussions about the platform’s fees and the potential benefits for long-term investors.

CPF Updates

Discussions included the upcoming changes to CPF schemes, including the increase in the Basic Healthcare Sum (BHS) by SGD 4,000 and the Enhanced Retirement Sum (ERS) to SGD 426,000 on 1 January 2025. Users also debated the optimal use of CPF funds for housing and investment, as well as the benefits of voluntary contributions for tax relief. The deadline for making cash top-ups for 2024 tax relief was 31 December 2024.

Community Insights

User Experiences

Many users shared their experiences with various banks’ promotional offers, highlighting both successes and frustrations. Some users reported difficulties in meeting the specific criteria for bonus interest, such as maintaining a minimum incremental balance or performing a certain number of transactions. > I gave up on this promo. Reached out to CSO many times but in vain. Now my money parked in CIMB fastsaver 3.2%. – wutawa (11 Dec 2024) Others noted inconsistencies in the application of terms and conditions by different bank customer service representatives. Several users experienced delays in the crediting of bonus interest and cashback, often requiring follow-up with customer service.

Some users successfully optimized their savings by switching between different bank accounts to take advantage of temporary promotions. Others shared strategies for maximizing returns from various savings accounts by strategically moving funds. Users also discussed the importance of keeping track of their average daily balance (ADB) to ensure they qualify for bonus interest. > Log in using browser and monitor your ADB , if your ADB is at least $500 , you will get it. – x9evolution (11 Dec 2024)

Tips and Recommendations

Users recommended setting up daily transfer limits to the lowest possible value to protect funds while still being able to move money when needed. They also advised diversifying savings across multiple banks to take advantage of different promotions. > might works for u if u set ur daily transfer limit to the lowest value – badsector (05 Dec 2024) For those seeking higher returns, users suggested considering T-bills, SSBs, or fixed deposits with longer tenures. For short-term savings, GXS bank’s boost pockets (with a 3-month lock-in) and Maribank’s saveplus account were mentioned as viable options.

Users advised reading the terms and conditions (T&Cs) of bank promotions carefully to avoid missing out on bonus interest or cashback. They also suggested contacting customer service to clarify any uncertainties or to resolve issues related to delayed payments. Users also discussed the importance of comparing expense ratios for investment products, particularly when considering options like Amundi unit trusts on POEMS. > If investing using cash, I suppose buying Amundi MSCI World (TER of 0.10%) on POEMS is better than buying VWRA (TER 0.22%) or ISAC (0.2%) on IBKR? – innumerabilis (07 Dec 2024)

Important Considerations

Users highlighted the importance of understanding the SDIC (Singapore Deposit Insurance Corporation) coverage for various financial products. They warned that some accounts, particularly those with fintech companies, may not be SDIC-insured, and users should be aware of this risk. Several users expressed concerns about the potential for banks to change interest rates or terms and conditions without prior notice.

Users also emphasized the need to be wary of scams and phishing attempts, particularly when dealing with unsolicited communications from banks. They advised using official bank channels for verification and avoiding the sharing of sensitive information over the phone. > No bank staff will ask for otp. The bank system/telephony will ask for otp, then talk to bank staff once otp validated. – twosix (31 Dec 2024) The forum also discussed the need to be mindful of the cut-off times for online banking transactions, especially on public holidays and year-end.

Looking Ahead

The forum anticipates further fluctuations in interest rates offered by banks in early 2025. Users expect banks to continue launching new promotions to attract customers, making it important to stay updated on the latest offers. Discussions are expected to continue regarding the optimal use of CPF funds for housing, retirement, and investment. The community will likely monitor the performance of MoneyOwl by Temasek Trust and the Amundi unit trusts on POEMS.

Users are also expected to discuss the implications of the new real-time scam prevention measures being implemented by banks. The forum is likely to see continued debates about the best strategies for maximizing returns while managing risks in a volatile financial environment. The community will likely closely follow the upcoming T-bill and SSB auctions to assess their viability as investment options in the new year.