HSBC bank has just released its new interest rates for April 2023. Though it has dipped slightly by 0.2%, it is still the highest savings account in Singapore at 5.35% !!!
You can also read more here:
Unlike OCBC360/UOB One accounts, the HSBC Every Global Account (EGA) account has no tough conditions to fulfill (eg. salary crediting, minimum spending of credit cards)
https://www.hsbc.com.sg/accounts/products/everyday-global/
For new accounts opened in April, the reference month would be based on March balances which would be $0. EGA bonus interest of 4.35% would be applicable for the next 4 months of April-June.
There's also a 1% cashback reward for incremental balances from previous month. Applicable for the first 2 months (Apr & May) and thereafter you may choose to either withdraw all your funds (remember this is a savings account!) in Jun, leaving just $2k balance to avoid the fall-below fees, and then redeposit again on 1 Jul 23. Alternatively, you may choose to let the funds remain in June to enjoy still a respectable 4.35%
The payment of the bonus interests would only be made in Sep, which would be few months later, so there's kind of a component of a fixed deposit mechanism within. The plus point is that it's still a savings account and you are free to move your funds for emergencies or to capitalise on other investment opportunities that arise (unlike 6/12 months T-bills and Singapore Savings Bonds).
This HSBC EGA savings account can be a bit confusing, so do comment below if u have further questions. Sharing is Caring! 😎
I think you have a typing error - Sept 23 bonus interest should be 0%. Also there’s a cap of $300 per calendar month on the bonus interest (1%) above the 4.35%.
ReplyDeleteYes there is a max cap of $300 per month. But based on 1% interest, the account funds would be $360k. So unless u intend to deposit more than $360k into hsbc account, will this cap be hit
DeleteMy bad - Jul 23 Everyday Rewards bonus interest should be 0% as it is limited to first 2 months only.
ReplyDeleteThanks for your feedback. I was trying to illustrate in the table, if u withdraw the funds in Jun, and then redeposit in Jul. So you would still enjoy the 1% cashback again in Jul
DeleteHow does the extra one percent work?
ReplyDeleteAlso it will reference again June when we want to take in this promotion in July. That is we must withdraw all our money less 2k right?
Thanks
Yes, the 1% cashback will reference to the previous month, unlike the 4.35% which will only reference to March. So to enjoy the 1% again in July, we will need to withdraw all money minus 2k on 1 June, and then redeposit again on 1 July
DeleteHi can you repeat this cycle again for the 4 months?
ReplyDeleteIt depends on HSBC terms and conditions which might change after each promo cycle
Delete