Executive Summary

The HardwareZone forum discussions on Singapore Fixed Income reveal a dynamic landscape of shifting interest rates, promotional offers, and varying user experiences. Recent weeks have seen a flurry of activity, with banks adjusting their fixed deposit rates and promotional terms. Users are actively exploring different options, including T-bills, Singapore Savings Bonds (SSBs), and various high-yield savings accounts, while also navigating complex terms and conditions. A key trend is the move away from SMS notifications by banks, with a greater reliance on in-app and email alerts. One notable statistic is the *3.08% yield achieved on a recent T-bill auction, showcasing the competitive rates available. Many users are also focused on maximizing returns from high-yield savings accounts, often juggling multiple accounts to take advantage of various promotions. Another key statistic is the 4%* interest rate for a UOB One account, which requires a high balance and monthly spending.

Key Developments

T-Bill Yields and Auctions

T-bill yields have been a major point of discussion, with recent auctions showing an increase in rates. A user noted a cut-off yield of *3.08% p.a. for a recent T-bill, prompting both excitement and concern among forum members. Some users expressed worry that rising T-bill yields might negatively impact REITs, while others see it as an opportunity to buy REITs at lower prices. The bid-to-cover ratio for one recent auction was 1.96, with approximately 91%* of competitive applications being allotted. This highlights the continued high demand for these instruments.

“3.08% F***, tbill chionging up = my reits gg” –

Fixed Deposit Rate Adjustments

Banks have been actively adjusting their fixed deposit (FD) rates, creating a competitive environment for savers. Maybank, for example, initially offered a competitive *3.8% for a 2-year FD, which with upfront interest, resulted in an effective interest rate (EIR) of 4.1%. However, they have since reduced their promotional rates. HL Bank offered 3.2% for a 6-month FD with a minimum of SGD 100,000. RHB also increased their FD rates across the board to 3% for various tenures. DBS, OCBC, and UOB have also made adjustments, generally trending towards lower rates, with DBS dropping from 3.2% to 2.45%*. These changes are closely monitored by users seeking the best returns.

“Maybank cuts promotional interest rates again, effective tomorrow.” –

High-Yield Savings Account Promotions

Several banks are running promotions for their high-yield savings accounts (HYSA), often with complex terms and conditions. CIMB’s eSaver account is a frequent topic, with users discussing the requirements for bonus interest. These conditions include a minimum incremental balance of *SGD 5,000 compared to the end-of-month balance and maintaining this balance throughout the promotion period. The CIMB Marathon Saver promotion initially offered 3.3%, but this has since been reduced to 3.2% for the December to February period. HSBC’s Everyday Global Account (EGA) also offers bonus interest, but users have noted the complexity of its terms. Maribank offered a flash top-up promo with 3.5% interest for 3 months, but it was limited to the first 10,000* eligible customers, causing frustration for some.

“Banks should really stop this BS “The first 10,000 Eligible Customers””

Mortgage Rate Trends

Discussions also touched on mortgage rates, with one report suggesting that fixed home loan rates are expected to fall below *2% over the next year and a half. However, some users noted that some banks are currently jacking up their rates to 2.7%* p.a. and above, reflecting market uncertainty. There’s a general expectation that mortgage rates will decline in the future, potentially driven by US Federal Reserve rate cuts. This is causing some homeowners to consider refinancing options.

“Fixed home loan rates to fall below 2% over the next year and a half, says mortgage broker” – —

Community Insights

User Experiences

Many users have shared firsthand experiences with various financial products, both positive and negative. Some users reported receiving bonus interest credits promptly, while others experienced delays or had issues with missing referral rewards. One user shared a successful experience with Maybank, achieving a *4.1%* EIR on a 2-year FD. Conversely, several users reported difficulties with CIMB’s bonus interest calculations and the complex terms of their promotions. There are also reports of banks suspending accounts due to large transfers, requiring users to contact customer service. Some users expressed frustration with the limited availability of certain promotions, such as Maribank’s flash top-up offer.

“I called in to ask only say will get back but already a week still no reply on why the missing rewards.” –
“Apparently, my wife called HSBC and customer service officer said hers was left out inadvertently. They cleared hers the next day, LOL” –

Tips and Recommendations

The forum also serves as a platform for users to share tips and recommendations. A common piece of advice is to carefully read the terms and conditions of any financial product before participating. Users recommend maintaining a clean account without regular incoming transfers to maximize bonus interest. Some users suggest topping up accounts on the first day of the month and immediately transferring out any excess to avoid messing up Average Daily Balance (ADB) calculations. For CIMB accounts, users recommend having two different account types to alternate between them and avoid triggering certain promotion requirements. Users also advise calling customer service to clarify any doubts about promotion terms. For Trust card users, it is recommended to make payments via FAST transfers instead of using the credit card option for faster crediting.

“The fuss free method is to top up SGD 500 on the 1st day of the month and maintain it throughout the month , any bonus interest or pay comes in , transfer it out to other account immediately.” –
“For CIMB, just open 2 different types of accounts. You can alternative between them.” – —

Important Considerations

Users should be aware of several important considerations when managing their fixed income investments. Firstly, banks are increasingly moving away from SMS notifications, relying more on in-app and email alerts. This means users need to be vigilant in checking their accounts through these channels. Secondly, the terms and conditions of various promotions can be complex, with specific requirements for minimum balances, fresh funds, and qualifying periods. Users must understand these terms to avoid missing out on bonus interest. Thirdly, there are reports of banks suspending accounts due to large transfers, so users need to be cautious when moving significant amounts of money. Finally, users should be aware of the risks associated with different investment products and diversify their portfolios.

“More and more banks have informed they will be phasing out SMS notification to move towards email and in app notification.” –
“Please always read the TnC no matter how freaking long it is especially for financial stuff.” – —

Looking Ahead

The community anticipates further adjustments in interest rates and promotional offers. Users are particularly interested in the December promotions from various banks, as well as potential changes in mortgage rates. Some users expect local banks to start offering FDs using CPF funds again in January/February. There’s also a general expectation that banks will continue to refine their online banking platforms and notification systems. Users are also watching the evolving landscape of online banks and their ability to sustain competitive interest rates. The community will continue to monitor these developments and share their experiences and insights on the forum.

“Imo, just wait for Dec promo or alternatives from HSBC or stand chart” –
“No leh Jan should have because SA close. I also expect the local banks to start offering FD using CPF funds again in Jan/Feb.” –