Today last day of the year, went to Public Bank and bank in some money into EPF account under self contribution program. This year no limit but next year maximum RM 60k per year. Interest calculated is daily.

Also went to OCBC  and opened another saving combo deal with effective interest about 3.8%. Next year interest rate is about the same but the money put into Smart Saver has to be fresh fund.

Ocbc is closing the loop hole on the saving combo. When first introduced, the money in SS account can be withdrawn the next day. They then changed the rule to have it kept for three months.

The money matured in the SS can be used as part of the Saving combo as "investment" in SS need not to be fresh fund.

2013, Ocbc called it Bonus Saver, this time FD and money invest in saving account have both to be fresh fund. In view of this change, I have decided to open Saving combo to make use my matured fund in SS today.

Ocbc 2013 FD promo

Pure FD - Islamic banking 3.5% flat for three or 12 months.

Bonus Saver replaced saving combo
FD interest 4.5 % but customer has to put certain sum of money into saving account. The ratio of FD to Saving account is 2:1.

Example, for 20k FD, 10k has to be put into saving account. Customer can choose any saving account or smart saver. Of course SS give a better rate of 2.9% but any withdrawal will end up very low interest rate. No change in the rate but the rule has changed, only fresh fund is allowed for the SS or any other saving account.

Based on the scenario given above and if a customer bank in RM1k every month into SS to enjoy the max rate of 2.9%, the effective interest rate is 3.76% which is slightly lower than that of the saving combo.

Ocbc 2013 FD promo

Pure FD - Islamic banking 3.5% flat for three or 12 months.

Bonus Saver replaced saving combo
FD interest 4.5 % but customer has to put certain sum of money into saving account. The ratio of FD to Saving account is 2:1.

Example, for 20k FD, 10k has to be put into saving account. Customer can choose any saving account or smart saver. Of course SS give a better rate of 2.9% but any withdrawal will end up very low interest rate. No change in the rate but the rule has changed, only fresh fund is allowed for the SS or any other saving account.

Based on the scenario given above and if a customer bank in RM1k every month into SS to enjoy the max rate of 2.9%, the effective interest rate is 3.76% which is slightly lower than that of the saving combo.

My calculation based on total amount of 33k is 3.91% for Saving Combo vs 3.69% for Bonus Saver.

Happy New Year 2013 

12 months tenure higher interest rate but fund tied up for 12 months.
1 month tenure lower interest rate but better in liquidity.

For 10k deposit, it is wiser to split to 4 FD receipts of 1k, 2k, 3k and 4k, so that in the event of premature FD uplifting, you can withdraw only the amount you need in multiples of RM1k.
For rm100k, split to 4 FD receipts of 10k, 20k, 30k and 40k.
For other odd deposit amount, decide your own combination depending on your need.

It seems Saving Combo is better than Bonus Saver.
My calculation based on total amount of 33k is 3.91% for Saving Combo vs 3.69% for Bonus Saver.

Happy New Year 2013 

Lets says principle is RM10,000
3.26% p.a for 1 month ,    after  1 year you got 10,330.92
4.05% p.a for 12 months,  after  1 year you got 10,405.00

then,which one is better?

What is the fastest and cheapest way to transfer RM30k lets say from UOB Bank to CIMB Bank? Other than physical cash transaction? Thanks.

Hi,

I don't really get it, what is the benefit splitting it up?

For 12 month vs 1 month pros and cons I understand, but how do they link to splitting up to 4FD Receipts?

The benefit is in the event of contigency FD withdrawal, you can withdrawal only the amount needed in multiples of rm1k. Example, you can withdraw rm5k with combination of rm4k + rm1k FD receipts. The remaining balance of rm2k and rm3k receipts will still earn the full FD interest and not affected by the premature withdrawal.

Today last day of the year, went to Public Bank and bank in some money into EPF account under self contribution program. This year no limit but next year maximum RM 60k per year. Interest calculated is daily.

Also went to OCBC  and opened another saving combo deal with effective interest about 3.8%. Next year interest rate is about the same but the money put into Smart Saver has to be fresh fund.

Ocbc is closing the loop hole on the saving combo. When first introduced, the money in SS account can be withdrawn the next day. They then changed the rule to have it kept for three months.

The money matured in the SS can be used as part of the Saving combo as "investment" in SS need not to be fresh fund.

2013, Ocbc called it Bonus Saver, this time FD and money invest in saving account have both to be fresh fund. In view of this change, I have decided to open Saving combo to make use my matured fund in SS today.

Ocbc 2013 FD promo

Pure FD - Islamic banking 3.5% flat for three or 12 months.

Bonus Saver replaced saving combo
FD interest 4.5 % but customer has to put certain sum of money into saving account. The ratio of FD to Saving account is 2:1.

Example, for 20k FD, 10k has to be put into saving account. Customer can choose any saving account or smart saver. Of course SS give a better rate of 2.9% but any withdrawal will end up very low interest rate. No change in the rate but the rule has changed, only fresh fund is allowed for the SS or any other saving account.

Based on the scenario given above and if a customer bank in RM1k every month into SS to enjoy the max rate of 2.9%, the effective interest rate is 3.76% which is slightly lower than that of the saving combo.

We are allowed to deposit money (maximum RM 60K per year) into KWSP's Self-Contribution program (Form 6A1) start from the age
of 14 and until the age of 75.
I have some money in my Smart Saver account, if I want to move my money from Smart Saver to 4.5% FD, then I need to withdraw
and re-deposit again since Bonus Saver needs fresh fund?

So Smart Saver is no longer available?

Thanks

Last year 2012 no limit. Starting this year 2013, max rm60k.
Those already contributing to EPF through current employment cannot participate in 1M Retirement fund, thus they can participate in self contribution program.

If fund in SS not mature, let it be. Moving any part of it will cause the interest rate drop to minimum level. If mature then only take it out.

If fund in SS not mature, let it be. Moving any part of it will cause the interest rate drop to minimum level. If mature then only take it out.

Bonus Saver is not a saving account. It is the promotion program name replacing the earlier Saving Combo or Booster plan (something like that)

The bonus Saver required the customer to place certain amount into any saving account. I used SS as an example is because it gives higher interest rate than normal saving account. SS is still available.
If place into other saving account type, the effective interest will be lower...

Wonder what is their current/saving account rate? Without 10% kept in saving/current account, effective rate is 3.72%..
Estimated interest rate with 10% FD kept in SA or CA is between 3.38 to 3.72%

I heard a different explanation from KWSP. Fot those who participate in 1M Retirement program also can participate in Self-Contribution program,
but the total amount from both programs cannot exceed RM 60K per year.
Anyway, I am not interested in 1M Retirement program which I think it is a bit troublesome (need to fill out a form to apply), furthermore, it pays
only extra RM 60 per year only.

1M Retirement progam is for those self employed like hawker etc as they do not have the employer portion of contribution. Thus govenment contribute max. RM 60 per year. Thus they can also particiapte in self contribution program. Form 61A can be downloded from EPF website or go to the EPF office to get a copy. Very easy to fill in.

SS opening is at the same time when you opened FD thus the maturity date followed FD maturity date