CIMB Bank Christmas Fixed Deposit Promotion

The festive season is here again. CIMB Bank beats other banks and launched their Christmas Fixed Deposit promotion ahead of everyone else. CIMB Bank is offering an interest rate of up to 1.90% per annum. This promotion is similar to their 9th Birthday Fixed Deposit Promotion except that interest rate is higher!

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 1.50 1.70 1.90

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 + (0.0150 × 0.25)) = 10037.50
A = $10,037.50

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

A = 10000(1 + (0.0170 × 0.5)) = 10085
A = $10,085.00

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

A = 10000(1 + (0.0190 × 1)) = 10190
A = $10,190.00

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

December 2018 Singapore Savings Bonds is 2.57%

The effective interest rate for Singapore Savings Bonds is at 12 months high at 2.57%. The last month where such high interest rate was offered was in August 2018 as you can see from the graph above.

As usual, I shall be allocating a portion of my monthly salary into safe haven. Singapore Savings Bonds acts as a form of emergency fund when the need arises. This month, the effective interest rate for December 2018 Singapore Savings Bonds (GX18120X) if you held it for 10 years is 2.57%.

If you didn’t know, Singapore Savings Bonds pays out interest every 6 months. Thus, if you have subscribed for December 2018 Singapore Savings Bonds, the next payout will be June 2019 and December 2019 respectively. If you own a DBS Multiplier Account, you can also apply the hack to earn a higher monthly interest from your DBS Multiplier Account. I have completed my matrix below and thus I am expecting to earn a higher interest rate from DBS Multiplier Account every month in the year 2019!

Read my previous post here on how to earn higher interest with your DBS Multiplier Account. Read More

My Sweet Retirement Applies T2023 Temasek Bond For Spouse

I am usually not interested in bonds except for Singapore Savings Bonds. However, a recent bond review by Adam Wong at the Fifth Person caught my attention. (Read more: Temasek retail bond: 5 things to know before you invest in the T2023-S$ bond)

Cutting the long story short, Temasek is offering a 5 year bond which matures in 2023 at a fixed interest rate of 2.7% per year. Interest is paid every 6 months and the principal amount is guaranteed by Temasek. The minimum investment amount is S$1,000 or more, in multiples of S$1,000. If you invest S$10,000, you will get S$270 per year or S$135 every 6 months.

The last date and time for applications under the Public Offer is 23rd October 2018 at 12 noon.

How To Apply

  1. You need a CDP account.
  2. There are three ways to apply for the T2023-S$ Temasek Bond.
    • Apply via ATM (DBS, POSB, OCBC and UOB)
    • Apply via Internet Banking
    • Apply via DBS/POSB mobile banking application.


The bond is not totally risk free. Risks associated with bonds include default, interest rate, liquidity, inflation risks and other risks.

Default Risk

Temasek can fail to repay the principal amount when its bonds are due. Of course, the probability of this is extremely low.

Interest Rate Risk

Interest rates may rise, causing bond prices to fall. If you need to sell your bonds in such situations, you may suffer a loss. We need to be careful of this risk as the US Fed may continue to hike interest rates.

Who Is The Investment Suitable For?

The bond is suitable for you if you:

  • want regular income at a fixed rate rather than capital growth;
  • want priority in payouts over share dividends in an insolvency situation;
  • are prepared to lose the principal investment if the Issuer and the Guarantor fail to repay the
    amount due under the Notes; and
  • are prepared to hold your investment until maturity or to exit the Notes only by sale in the secondary market which may be unprofitable or impossible.