>> Saturday, April 19, 2014
As the competition for deposits heats up among the banks, it seems the consumer is the one benefiting from it. Based solely on the criteria of advertised interest rates and not taking into consideration banking hours, availability of ATMs, service level, etc.
Number 1: OCBC recently launched the 360 Account that pays up to 3.05% interest on up to $50,000 deposited provided the required criteria are met. Firstly, crediting a salary of more than $2,000 into the account. Secondly, paying any 3 separate bills. Thirdly, spending at least $400 on any OCBC credit card. All of which seems reasonable to achieve. I am sold on it and April will be my first month to see if it indeed lives up to the hype as promised.
Number 2: A similar account is the BonusSaver from SCB. However, the criterion for that account was more challenging and less attractive. It pays 1.88% interest on up to $25,000 deposited, provided at least $500 is spent on the credit card. Personally, I closed it after 6 months as it was not suitable for me.
Number 3: Lastly, the best savings account that pays 0.8% interest with minimal conditions is still CIMB StarSaver Which is even higher than some banks’ fixed deposit rates.
There are a couple of others that advertise rates like 2.014% from POSB and 2.5% from Citibank, but the terms and conditions are very different. Like it only applies on the incremental amount and for a limited period only.
Do note, of course, that interest rates are all quoted per annum basis. In case some are dreaming it is too good to be true.
Anyone has any better to share?