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Overseas Chinese Banking Corporation (OCBC Bank)
04-09-2019, 11:48 AM.
Post: #421
RE: Overseas Chinese Banking Corporation (OCBC Bank)
S'pore banks has a trick to minimize funding cost. The interest rate of 2% of only applicable for fresh funds.
After 1 year, the FD rate will be drastically drop to 0.6%, unless one has the time to keep bank-hopping and get good rates

Is it only a S'pore phenomenon? I feel it's like cheating depositors. Are USA banks allowed to do this?

But as a shareholder, I think it's brilliant to keep the cost of funding low.

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04-09-2019, 12:54 PM.
Post: #422
RE: Overseas Chinese Banking Corporation (OCBC Bank)
The big three banks in spore usually gave poorer fix deposit rates. Go for foreign cimb, maybank or hong leong. Hong Leong gave higher rates and yet no such nonsense as need to put in fresh funds to continue to enjoy the higher rates.

I hope with the introduction of the 5 new digi bank licenses by MAS, fix d rates will be better.

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04-09-2019, 01:00 PM.
Post: #423
RE: Overseas Chinese Banking Corporation (OCBC Bank)
Bibi thanks for the info... I think foreign banks like ICBC also pick up the bad habit... they cut the FD rate to 0.6% after 1 year
With inflation around 3%, those retirees will get leeched

I will try out Hong Leong.

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04-09-2019, 01:27 PM.
Post: #424
RE: Overseas Chinese Banking Corporation (OCBC Bank)
(04-09-2019, 01:00 PM)pencilin Wrote: Bibi thanks for the info... I think foreign banks like ICBC also pick up the bad habit... they cut the FD rate to 0.6% after 1 year
With inflation around 3%, those retirees will get leeched

I will try out Hong Leong.

Is inflation really 3%? 

Anyway, banks (in general) give decent dividend yield. Alternatively can buy their perpetuals, which pay more than FD or even 3%.

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05-09-2019, 08:15 AM.
Post: #425
RE: Overseas Chinese Banking Corporation (OCBC Bank)
wong, no more perpetuals. Almost all delisted
Bank don't need to pay 5% for fund, where they can get it at 0.6%

Inflation is around 3% on average. Just take note of the coffee shop prices, public transport fee hike, school fees, ERP...
I think media hype it down to under 1%, to justify the poor return on CPF OA account. Miserable 2.5%

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