Hi folks,
Guess what, I found something thay may be of interest to you.
Fundsupermart,the online distributor of unit trusts,has come up with a cash management account for all their investment account holders. They are paying an interest of SIBOR- 0.5% this works out to well above 2% .And there is no minimum amount.
I think that it has a rather good advantage over the other products. OCBC has a similar product but it has a minimum deposit of I think 20000 bucks.
Please share any comments, especially if you have experience with this account.
Linus
Tuesday, November 22, 2005
Friday, November 18, 2005
Investments for the young
If you are under 21 in Singapore and are a budding investor, in all likelihood, you are scatching your head and wondering ," how do I put my money to work for me??". This problem is compounded by the lack of investment education and the many regulations that exist. If you have not already known, MAS law is that people under 21 are not allowed to invest in stocks,bonds or even in unit(mutual) funds, unless on a joint account basis.
With all these obstacles, how does one invest??
It's possible and I shall highlight certain investments that should be considered.
1) High yield savings account
As explained in the previous post, due to the rise in the SIBOR ,banks have been falling over each other to offer more and more competitive interest rates. The 0.125 rate is now passé and one can consider high yield savings account like to iSAVvy ,giving 1.38%, or the eSaver trustee account at 1.28 % .
2) Fixed deposits
Considered the cousin of saving accounts this form of deposit can give greater returns by locking your money up for a period of time. For small amounts, consider the finance companies eg Singapura or Hong leong Finance or certain obscure banks like the bank of east asia.( www.hkbea.com.sg)
3) Joint holding Mutual(unit trusts)
Although you are under 21, you may subscribe to unit trusts if it is done jointly with someone above 21. The categories are plentiful: bong funds, equity funds,balanced funds.
If you lack experience I recommend index funds which typically have lower expenses and track market indices. In Singapore look for the infinity series by the Lion Capital group(www.ocbc.com.sg)
4) Foreign currency fixed deposits
Such FDs pay higher interst rates .For example the New Zealand FD pays about 6% pa for 1 month and the euro about 0.8 % p.a. for a similar tenure.
However, one must remember that this is subject to interest rate fluctuations.
Have Fun!
Linus
With all these obstacles, how does one invest??
It's possible and I shall highlight certain investments that should be considered.
1) High yield savings account
As explained in the previous post, due to the rise in the SIBOR ,banks have been falling over each other to offer more and more competitive interest rates. The 0.125 rate is now passé and one can consider high yield savings account like to iSAVvy ,giving 1.38%, or the eSaver trustee account at 1.28 % .
2) Fixed deposits
Considered the cousin of saving accounts this form of deposit can give greater returns by locking your money up for a period of time. For small amounts, consider the finance companies eg Singapura or Hong leong Finance or certain obscure banks like the bank of east asia.( www.hkbea.com.sg)
3) Joint holding Mutual(unit trusts)
Although you are under 21, you may subscribe to unit trusts if it is done jointly with someone above 21. The categories are plentiful: bong funds, equity funds,balanced funds.
If you lack experience I recommend index funds which typically have lower expenses and track market indices. In Singapore look for the infinity series by the Lion Capital group(www.ocbc.com.sg)
4) Foreign currency fixed deposits
Such FDs pay higher interst rates .For example the New Zealand FD pays about 6% pa for 1 month and the euro about 0.8 % p.a. for a similar tenure.
However, one must remember that this is subject to interest rate fluctuations.
Have Fun!
Linus
Wednesday, November 16, 2005
iSAVvy account: Really Sav-vy?
Much ado and publicity was generated on the launch of the iSAVvy account . a product championed by Maybank,one of our larger players in our local banking scene. With an interest rate of 2.38 % the first 3 months and 1.38% thereafter,the product promises to be a sweet deal. And this sweet deal is made even sweeter by the 6% interest on interest.
Sounds great?
On first sight , the product promises to be the one that will grow your savings. At 2.38 % , the product could pay even higher than a 3 month SGS bond. And the 1.38% interest is much greater than the 0.125% offered by the other banks.
It looks great on the surface. But when I went to open the account several days back,I realised certain catches.
1. Account closure fee is $30 for the first 6 months and $15 thereafter. So if you decide to take out your money and close the account after a while, the $15 will take a huge bite out of your interest that you received.
2. The account can only be operated using ATMs and internet banking plus phone banking. Branch transactions will incur high charges.
My advice?
Open it only if you want to keep your money in there long term. But it may not be the case ;with the SIBOR going up, banks will be inventing new products with better returns to attract deposits.
Sounds great?
On first sight , the product promises to be the one that will grow your savings. At 2.38 % , the product could pay even higher than a 3 month SGS bond. And the 1.38% interest is much greater than the 0.125% offered by the other banks.
It looks great on the surface. But when I went to open the account several days back,I realised certain catches.
1. Account closure fee is $30 for the first 6 months and $15 thereafter. So if you decide to take out your money and close the account after a while, the $15 will take a huge bite out of your interest that you received.
2. The account can only be operated using ATMs and internet banking plus phone banking. Branch transactions will incur high charges.
My advice?
Open it only if you want to keep your money in there long term. But it may not be the case ;with the SIBOR going up, banks will be inventing new products with better returns to attract deposits.
The debut
Hi everyone....
First of all, let me welcome all of you to my newest blog.
Let me explain the rationale for this blog. Because of my passion for investment and personal finance,I have decided to set up this blog to discuss all the issues relating to personal finance.
From your saving accounts to the latest hot funds, all will be discussed.
I'm sure that you will find this place informative and interesting.
So I hope to see you around!
First of all, let me welcome all of you to my newest blog.
Let me explain the rationale for this blog. Because of my passion for investment and personal finance,I have decided to set up this blog to discuss all the issues relating to personal finance.
From your saving accounts to the latest hot funds, all will be discussed.
I'm sure that you will find this place informative and interesting.
So I hope to see you around!
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