Increase in Fixed Deposit Rate by POSB

A lot of people, especially those older ones, are used to the POSB brand name. That is why when DBS gobbles up POSB, it keeps the name instead of renaming all POSB to DBS. Even the websites of DBS and POSB are different. I remember MediaCorp once asked this question on why not remove all the POSB name and replaced it with DBS when DBS and POSB merged, one old man says he remember the key symbol for POSB (So Si in Hokkien).

They still have most atm.

(15-09-2012, 09:18 PM)Bibi Wrote: Can someone enlighten me why there are so many pp willing to put money in DBS/POSB when their ATM and banking counter queues is so bloody long? I was told POSB guarantee 100% of deposits back then, but now no more right? Is it because the minimum deposit amount is much lesser compared to OCBC or UOB?

I think for many people especially for those post-65ers, POSB was their first savings account. And they just carry it on to their adult lives.

If you are looking to opening a basic savings account now, there's not a lot of difference between DBS, OCBC and UOB. So it's down to branches, networks, reputation and service.

POSB was also my first account. Many years ago I decided to close it and switch to uob when I got increasingly frustrated at the queue length.

I'm puzzled about the complaint on queue length. You can do this online.

(15-09-2012, 02:23 PM)corydorus Wrote: I got this fear in the back of my mind. Will it reach a point where something startled the USD, an overnight it crash to abyss ?

That's my fear too. But basically, many people in the world still believes in the ability of Americans to work and pay off their debts. As long as they don't stop innovating, the faith will always be there.

(15-09-2012, 02:29 PM)sgd Wrote: we haven't heard what china and the europeans plan to do they may after a few weeks announce their own stimulus measures in conjunction to the QE3 for added effect.

But we can't just print money forever.. USA is kinda over doing it.

As for the why POSB is used by so many people, basically POSB had the kids account promotion where they aggressively advertised and marketed to families. My family all use POSB. My 2 brothers and I were all offered the kids account to our parents, and they just took it up.

That's where the majority of the market share were taken.

The queue are getting longer, yes. There are more and more ATM displaying the "$50 only" sign. They are facing issues with people always drawing in the $20s.

uob atm don't have that queue problem, ocbc also I often wonder that myself I can only guess it boils down to singaporeans being copycats like to copy what everybody doing, they see a queue they think it must be good or they can't make up their minds so they just join in

Quote:But we can't just print money forever.. USA is kinda over doing it.

Actually everybody says this is bad, this is bad, all the experts are very clever to say is not good in the long run blah blah blah but you know what? this is what everybody wants anybody who is vested in the market that is. Everybody knows that down the road things will become very expensive due to crazy inflation and interest rates will have to hike up like crazy to tame it and governments that are now bankrupt and up to their eyeballs in debt will start taxing their citizens heavily, come on how else do you think they can pay 6.5% interest on their loans, where do you think the money coming from ...

but nobody cares there's a bull run now and that's all their focus is on.

Money printing must always continue if the GDP is growing. If the GDP grows and there is no money printing to account for the new services and products, then there will be deflation.

Singapore's debt is more than 100% of the GDP. Like US. So, are we in deep Sh**?
http://www.guardian.co.uk/business/2011/...untry-next

(16-09-2012, 01:56 PM)yeokiwi Wrote: Singapore's debt is more than 100% of the GDP. Like US. So, are we in deep Sh**?
http://www.guardian.co.uk/business/2011/...untry-next

no we are not in trouble. Our debt is mainly due to the issuance of govt securities to set benchmark rates, not to fund social welfare programmes. The govt runs a pretty tight fiscal ship and usu runs budget surpluses.

(16-09-2012, 01:40 PM)sgd Wrote: uob atm don't have that queue problem, ocbc also I often wonder that myself I can only guess it boils down to singaporeans being copycats like to copy what everybody doing, they see a queue they think it must be good or they can't make up their minds so they just join in

Quote:But we can't just print money forever.. USA is kinda over doing it.

Actually everybody says this is bad, this is bad, all the experts are very clever to say is not good in the long run blah blah blah but you know what? this is what everybody wants anybody who is vested in the market that is. Everybody knows that down the road things will become very expensive due to crazy inflation and interest rates will have to hike up like crazy to tame it and governments that are now bankrupt and up to their eyeballs in debt will start taxing their citizens heavily, come on how else do you think they can pay 6.5% interest on their loans, where do you think the money coming from ...

but nobody cares there's a bull run now and that's all their focus is on.

(16-09-2012, 03:58 PM)Muck Wrote:

(16-09-2012, 01:56 PM)yeokiwi Wrote: Singapore's debt is more than 100% of the GDP. Like US. So, are we in deep Sh**?
http://www.guardian.co.uk/business/2011/...untry-next

no we are not in trouble. Our debt is mainly due to the issuance of govt securities to set benchmark rates, not to fund social welfare programmes. The govt runs a pretty tight fiscal ship and usu runs budget surpluses.

Precisely, looking at debt alone does not give a full picture of the country's financial status.
It's the same as looking at properties' developer balance sheet. Many developers are heavily in debt but they have assets' valuations that are greater than debt and their cash flows are able to pay the interest.

Besides that, we also have to account for hidden valuations. For US, the hidden valuation is high.