T-Bill 3.78% vs HSBC EGA 4.55% (May 2023)

The latest t-bill BS23109E has been a respectable 3.78% for our hard earned monies 😂 Was actually expecting it to be slightly lower at around 3.5% as some of the new CPF monies pour into this t-bill auction for the new month of May, so as not to lose another additional month of CPF interest for April. Seems more people are bidding the t-bills more sensibly now, which benefits more people in the long run. 

For me, I have not been bidding t-bills for a few months because of the new HSBC EGA account which I have opened in March. With the EGA account moving to the 3rd month, I will no longer be eligible for the extra 1% Everyday+ Rewards. Still it's a respectable 4.55% slightly higher than the current t-bill of 3.78% yield. Probably it's time to look for a better yield instrument in the month of June.

HSBC 5.55% EGA Savings Account

The month of June brings some volatility as the USA Debt Ceiling croaches near, and political brinksmanship comes into obvious play. It's just concerning that Parties become more important than Country, as Right vs Left idealogy clash. Still I hope that at the end of the day, clear minds prevail as both sides agree that Default is not the option. 

Maybe this could be good opportunities to buy into local bank stocks or S&P500 index. Savings account and T-bills should just be temporal sandbox to park our excess funds to capitalise on better investment opportunities. With core inflation at 4%, it basically just matches the current purchasing power of our cash today. To build wealth, unfortunately we still need to do some calculated risks to overcome high inflation moving forward.

The local bank stocks have been feeling jittery over the upcoming USA debt limit, and are showing first signs of pullback, as usual from kiasu Singaporean investors 😅 S&P500 instead is still holding pretty well. Let's see if next week brings more volatility. I recall hearing some Economist from Bloomberg stating that usually investors tend to react 2 weeks before the deadline, as in 2011 when USA credit rating was downgraded from AAA.

USA Republican Convention

Can only pray for true Leaders to rise up and save the political situation! 😇

HSBC 5.55% Savings vs 3.85% T-Bills

As revealed in my 7-Figures Portfolio, Bonds form the biggest chunk at 19%, of which most of it includes 6 months T-bills, with which I have created a 6 months Bond Ladder to ensure funds liquidity to capitalise on probable investment opportunities.

7-Figures Portfolio

 

However with the availability of HSBC 5.55% high Savings account, this resolves the liquidity issue of excess cash vs Bonds (T-bills, SSB, Fixed Deposits etc)

HSBC 5.55% EGA Savings Account

Bank Savings acconts should be relatively safe, with guarantees of at least $75K by SDIC. Plus HSBC is also one of the 7 Singapore banks classified as Domestic Systematic Important Bank (D-SIB).

https://www.mas.gov.sg/news/media-releases/2015/mas-publishes-framework-for-domestic-systemically-important-banks-in-singapore

The last bank run in Singapore happened in 1974, almost 49 years ago, survived and subsequently was acquired by present day UOB bank

https://remembersingapore.org/2014/04/22/a-bank-run-in-singapore/

Even in USA, when the relatively small Silicon Valley Bank run happened, USA government quickly stepped in for a full guarantee of ALL bank deposits.

Comparatively, T-Bills are fully backed by the Singapore Government, AAA credit rating. Plus Singapore has $0 net external debt. Yes, $0! external debt (woohoo, well done Singapore!). Technically, u can't default/bankrupt with ZERO debt.  😅

https://www.mof.gov.sg/docs/default-source/resource/gst/pdf/10-is-the-singapore-government-heavily-in-debt.pdf

So it does seem that T-Bills are still relatively SAFER than HSBC savings, but it's kind of negligible. So for the time being, more of my cash is in HSBC rather than in 6m T-Bills (which also are 2 weeks apart). T-Bills yields are also slightly lower at around $3.85% vs HSBC 5.55%

Still in our current highly volatile world, u can never say NEVER! Let me know your thoughts of 3.85% T-Bills vs 5.55% HSBC Savings?

Highest Savings Account! HSBC 5.35%!!!

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:

http://thesingaporemarket.blogspot.com/2023/03/hsbc-555-ega-savings-account.html

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%

https://www.hsbc.com.sg/content/dam/hsbc/sg/documents/hsbc-everyday-global-account-bonus-interest-promotion.pdf

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!  😎

HSBC 5.55% EGA Savings Account

With the Nerf of RHB high yield savings account bonus interest, it is time to look for another appropriate savings with good rates. There has been some online chatter on how good the HSBC Everyday Global Account (EGA) is, but the terms & conditions are complicated and difficult to understand. Still with a determination to make my monies work harder, I plunged into the HSBC website head-on and also made a long call to their customer service.

https://www.hsbc.com.sg/accounts/products/everyday-global/

https://www.hsbc.com.sg/content/dam/hsbc/sg/documents/hsbc-everyday-global-account-bonus-interest-promotion.pdf

True to online feedback, the HSBC website is confusing with quite a few ongoing promotions concurrently ongoing. But I guess at the end of day, the most important reason would be the favourable 4.55% interest rate for Incremental Balances vs Reference Month

Plus there is also a 1% bonus interest rate (Everyday Rewards+ Programme) on the incremental balances, which makes it a total of 5.55% yield!

https://www.hsbc.com.sg/content/dam/hsbc/sg/documents/accounts/everyday-global/terms-and-conditions-governing-everydayrewards-programme.pdf

It seems quite silly just to make 5 consecutive funds transfer of $1 each to another bank account (yes, even the HSBC customer service admitted so!) to qualify.

This 1% bonus rate runs only for incremental balances from the previous month, so if u open the EGA account on March, you would need to transfer your monies out on 1 April, and then back again on 1 May, to enjoy this bonus interest. With FAST bank transfers which are instantaneous, this would be easy. Just need to set a reminder in the phone calendar, to perform this 1 minute transfer to enjoy a high 5.55% interest rate.

Oh yes, I would also choose Personal Banking, instead of Premier, as there is a bank charge of $50! if the total relationship amount drops below $200k. 

If u have further questions, pls feel free to comment below

Enjoy this high interest rate while it lasts!  😁

SC 3.8% e$aver Savings Account (Mar 2023 ONLY)

 I have just received the Bonus Interest for the month of February, and would like to share on this absolutely no-frills 3.8% cash savings account. Compared to other bank deposits currently available like OCBC360/UOB accounts (where u would need to credit your salary, spend $800 credit card, increase $500 monthly average daily balance etc), this SCB account takes almost no effort to achieve. 

Another big plus for people who are holding more emergency cash for various family reasons, is that this bonus interest pays up to $2 million vs $100k only for OCBC/UOB. Promotion is ending soon by end March. So do take a quick look before the promotion ends. Let's make our money work harder!  😅

https://www.sc.com/sg/save/savings-accounts/esaver/?subChanCode=IBSC

Standard Chartered has given a good example under their terms & conditions on the calculation of 3.8% bonus interest

https://av.sc.com/sg/content/docs/sg-esaver-tnc.pdf

Once again, Bonus Promotion ends by end March, so do transfer your funds fast! 😂

Setting aside at least 6 months of cash savings for emergencies

With an increasing culture of spending instead of saving, temptation of protection through too much insurance - when u are probably worth more dead than alive, cash is really king during emergencies or in between jobs

 

To offset inflation while holding cash, there are some suggestions

 

a.  OCBC 360 account with 3.05% interest up to 50K

http://www.ocbc.com.sg/personal-banking/accounts/360-account.html

1% for crediting salary, 1% for paying 3 online bills, 1% for $400 spend on ocbc cards

 

 

b. CIMB savings account with 0.8% interest

http://www.cimbbank.com.sg/index.php?ch=sg_per_st&pg=sg_per_st_cur&ac=12

monthly increment/lump sum of $500 to enjoy 0.8% for checking current account, or $100 monthly increment for savings account

c. Standard chartered bonus$aver account with 1.88% interest up to 25K

https://www.sc.com/sg/save/current-bonussaver.html?pid=S:SCBMN:N:SG-P:SB-M:O-R:NA-L:NA-O:NA-D:141101-10002125

monthly spend of $500 in Stanchart credit cards to enjoy 1.88% interest

Making my cash work HARDER

Have been looking at this new Standard Chartered savings account for few months and finally took the plunge to try it out, as I walk pass the bank branch on Sunday. Well I should let my cash work harder! :)

                                      

CIMB starsaver account

My dad was asking me again on a savings account with a higher interest rates, after looking at a full splash page of SCB advertisement on the newspaper.

I took another look at the CIMB website and was simply amazed at how easy it is to open a CIMB account, plus some goodies for Referrals :) (pm me for my IC number)

Simply print out this form and mail, together with your enclosed cheque (written in your name, so this is safe!)

http://www.cimbbank.com.sg/index.php?ch=19&pg=41&ac=135&bb=912&tpt=cimb_sg

Baby Bonus account and 1% savings bank account from Standard Chartered

Standard Chartered Bank is offering 1% savings account (eSaver) for a CDAC baby bonus account opened with them. Offer ends by the end of 2011, but my guess is that it will go on and on.

Check it out on their website for more info  :)

http://www.standardchartered.com.sg/personal-banking/deposits/child-development-account/en/

I also like their free Personal Accident Insurance of $50K

Savings Account

CIMB Malaysian Bank has been expanding agressively recently and is currently offering prob the most competitive savings rate as compared to other banks (Maybank, Stanchart, DBS etc)

The Starsaver savings account interest rate is at an attractive 0.8%, comparable even to some fixed deposit rates.

On top of the savings account, it also offers free unlimited cheque books, which are useful for day-to-day and if u need to transfer large amounts of money quickly to a local bank (DBS, OCBC, UOB) for a hot IPO share application

Have sinced transferred a major bulk of my cash savings to capitalise on the attractive interest rate. Don't think this will last for a long time as I guess it is to attract new customers for the bank. Probably by next year, unless interest rates in general also go up due to inflation and a strong economy, the rates should come down accordingly. Still 0.8% is 8x as compared to 0.1% in DBS. Have to make my money work harder :) and myself to work less hard  :P

For those who are risk averse (or kiasi type), u might want to take note that bank deposits are 100% guaranteed by the Deposit Insurance Act. So it is safe to transfer your monies into this Malaysian bank.

Still looking closely at the 0.8% rate, there is a slight element of fixed deposit component inside this predominant savings account. The minimum deposit is $5K, with a monthly inward transfer requirement of $500. Failing to meet the $500 transfer, would mean that the interest would drop till 0.5% (which I think is still attractive compared to other banks. In summary, my feel is that if u have about $11K+ to transfer over, this savings account would be suitable. ($5K for minimum, $6K for one yr of monthly transfers)

http://www.cimbbank.com.sg/index.php?ch=sg_per_st&pg=sg_per_st_cur&ac=12&tpt=cimb_sg

For those who have no use of the cheque book, I was at the bank twice, and the CIMB staff explained clearly to me, that the minimum deposit to start is $1K and monthly inward transfer is $100, to enjoy the 0.8% interest. There was no brochure and info in the web. I also opened this heehee, so i now have two CIMB accounts!  :P

It's nice to be surprised by money (CIMB logo). My Feb bank interest is now much higher than before :) There is an art to moving money around to maximise opportunities or reduce risk investments. Recently I have been looking at financial numbers from the % perspective instead of the real amount value. 1% of $10K and 1% of $100K are the same in terms of % but the amount values are 10x. Part of financial stewardship is not to belittle humble beginnings. As the amount grows, the multiplication effect will be substantial, together with compound interest. Monies earned honestly and with integrity, will be of much use. History has shown that people who win lotteries, became poorer many yrs later. They have not learnt money management skills properly  :)