Fixed Deposit Promotions in October 2018

Following my post on CIMB Bank’s latest fixed deposit promotion, I realize many other banks are introducing their fixed deposit promotions as well.

Despite fixed deposits having a locked in period for a specified amount of time (usually 12 or 24 months), fixed deposits offer much lower risks as compared to investment products such as stocks and REITs. For example, REITs have recently suffered a setback when Federal Reserve decided to hike their interest rates in September. My stock portfolio was not spared.

Another comparable investment product which has low risk is the Singapore Savings Bonds. However, you will need to hold it for a longer period of time (10 years) to reap its full interest rate. For example, November 2018 Singapore Savings Bonds offers an effective interest rate of 2.48% if you held it for 10 years. If you have followed my monthly updates, you know that I am a supporter of Singapore Savings Bonds and I have been purchasing Singapore Savings Bonds every month.

If you decided Singapore Savings Bonds does not suit you, below are the fixed deposit promotions I have found so far. Read More

3 Tips to Survive a Retrenchment

This is probably some old news you may have read a few days ago. Starhub will be retrenching 300 full time employees as part of a S$25 million restructuring exercise. This has brought back some of my bad memories. Believe or not, I was once retrenched and it came unexpected. I am not going to write about the impact of the retrenchment on the share price of Starhub, but to share my past retrenchment experience and how I learnt about the importance of having an emergency fund.

Believe it or not, I didn’t know and neither was I interested in stock investing in my younger days. I believed if I work hard and deliver results in the company I am working for, I will be rewarded. The company that I was working for was doing very well until one day, the retrenchment came unexpected. The management did not explained to us what was the rationale for the retrenchment. We were told to pack our personal stuff and leave the office immediately. There was no negotiation on the compensation and was briefly informed that the compensation will be credited into our salary banking account when it is ready.

Yes, this is how cruel and relentless the society is. I just got married, bought my house and have bills to pay. Being young and without much savings, I can only last 3 months without a job. Believe it or not, I scrimp and spent only $4 a day on meals. I was lucky to find job in the 4th month.

Six years have passed and here are the lessons that I have learnt from the retrenchment. Read More

CIMB Bank 9th Birthday Fixed Deposit Promotion

It really has been a very long long time since I wrote about fixed deposits because I could not find any ones that are good and simple to understand. Recently, I found a good deal from CIMB Bank.

As part of their 9th Birthday celebration, CIMB Bank is offering an additional 0.09% interest per annum on all their online promotional SGD Fixed Deposit rates.

You can choose the duration of 3 months, 6 months or 12 months and if you apply online, they offer higher interest rates as shown in the table below.

Interest Rates (% p.a.)
3 Months 6 Months 12 Months
Branch Rate 1.30 1.45 1.55
Online Exclusive Rates 1.49 1.64 1.84

A minimum of S$10,000 per placement is required.

Using S$10,000 as an illustration,

If you place a fixed deposit for 3 months, the total accrued amount (principal + interest) that you will receive is

A = 10000(1 + (0.0149 × 0.25)) = 10037.25
A = $10,037.25

If you place a fixed deposit for 6 months, the total accrued amount (principal + interest) that you will receive is

A = 10000(1 + (0.0164 × 0.5)) = 10082
A = $10,082.00

If you place a fixed deposit for 12 months, the total accrued amount (principal + interest) that you will receive is

A = 10000(1 + (0.0184 × 1)) = 10184
A = $10,184.00

I believe the above is a good deal if you have extra cash to park aside for a short duration of maximum 12 months.