Singapore Savings Bond

(31-03-2015, 01:49 PM)CCUV Wrote: Boc sg fd promotion 1.64% for 3 months min 100k

http://www.bankofchina.com/sg/bocinfo/bi...29479.html

I do agree it will have a positive impact on interest payable in saving and FD account as banks are likely to "fight" for deposit

Any FD promotion that is above market rate will have strings attached or are simply to tease you into developing a relationship with the bank (e.g. for new customers only).

(31-03-2015, 05:11 PM)tanjm Wrote:

(31-03-2015, 01:49 PM)CCUV Wrote: Boc sg fd promotion 1.64% for 3 months min 100k

http://www.bankofchina.com/sg/bocinfo/bi...29479.html

I do agree it will have a positive impact on interest payable in saving and FD account as banks are likely to "fight" for deposit

Any FD promotion that is above market rate will have strings attached or are simply to tease you into developing a relationship with the bank (e.g. for new customers only).

You can say no to any other things,boc sg is fine,so far no cross selling

I believe tanjm's main point is to stress the word promotion - i.e. once off for you and in the process it is actually a promotion of BOC to new customers.

(31-03-2015, 05:35 PM)egghead Wrote: I believe tanjm's main point is to stress the word promotion - i.e. once off for you and in the process it is actually a promotion of BOC to new customers.

There are actually quite a lot of promotion among the foreign banks,you just need to scout around for better rates. So far boc sg had been giving me promotion after promotion,as the sibor rate jump,the key is actually keeping your deposit in shorter tenure to enjoy a rising deposit rate enviroment.

(31-03-2015, 01:49 PM)CCUV Wrote: Boc sg fd promotion 1.64% for 3 months min 100k

http://www.bankofchina.com/sg/bocinfo/bi...29479.html

I do agree it will have a positive impact on interest payable in saving and FD account as banks are likely to "fight" for deposit

This quite attractive. Any catch?

(31-03-2015, 09:00 PM)pianist Wrote:

(31-03-2015, 01:49 PM)CCUV Wrote: Boc sg fd promotion 1.64% for 3 months min 100k

http://www.bankofchina.com/sg/bocinfo/bi...29479.html

I do agree it will have a positive impact on interest payable in saving and FD account as banks are likely to "fight" for deposit

This quite attractive. Any catch?

None

(31-03-2015, 10:05 PM)CCUV Wrote:

(31-03-2015, 09:00 PM)pianist Wrote:

(31-03-2015, 01:49 PM)CCUV Wrote: Boc sg fd promotion 1.64% for 3 months min 100k

http://www.bankofchina.com/sg/bocinfo/bi...29479.html

I do agree it will have a positive impact on interest payable in saving and FD account as banks are likely to "fight" for deposit

This quite attractive. Any catch?

None

ok will proceed tom thanks

(31-03-2015, 10:06 PM)pianist Wrote:

(31-03-2015, 10:05 PM)CCUV Wrote:

(31-03-2015, 09:00 PM)pianist Wrote:

(31-03-2015, 01:49 PM)CCUV Wrote: Boc sg fd promotion 1.64% for 3 months min 100k

http://www.bankofchina.com/sg/bocinfo/bi...29479.html

I do agree it will have a positive impact on interest payable in saving and FD account as banks are likely to "fight" for deposit

This quite attractive. Any catch?

None

ok will proceed tom thanks

100k min

(31-03-2015, 05:11 PM)tanjm Wrote:

(31-03-2015, 01:49 PM)CCUV Wrote: Boc sg fd promotion 1.64% for 3 months min 100k

http://www.bankofchina.com/sg/bocinfo/bi...29479.html

I do agree it will have a positive impact on interest payable in saving and FD account as banks are likely to "fight" for deposit

Any FD promotion that is above market rate will have strings attached or are simply to tease you into developing a relationship with the bank (e.g. for new customers only).

Many times they will just ignore you. Their RM may not even bother to call you when the FD is due. So just have to go back to the bank, take a cheque, then walk over to another bank and starts another "relationship". Repeat every year.

Regarding the saving bonds, the tenor is 10yrs, and the interest is incremental, so will not expect the first or second year interest to be high. Very likely it will be lower than all these promotional FD rates. So banks will still will get their business without a real fight.

The saving bond is useful for sitting out of the market and keep yourself liquid. A crazy bull market which also represent a crash is near. If the market do go through a bull market,short term rates will be high,which mean the interest payable on the saving bond even on the first year represent a decent risk free yield. A bear market last at least 12 months. I suspect at the height of the bull market,risk free rate for short term sgs to be around 2-3% which ssb will likely to be yielding too.

The second thing which I find it useful is the risk free status. During the GFC, depositor might be unwilling to risk a big sum with a single bank thus saving bond as an useful alternative