http://www.osk188.com/adminv2/UserFiles/OS...0110713_OSK.pdf

This is not FD but it could be a good alternative for those above 55 years old to park their money at EPF. Since if you are above 55, you have the flexibility to withdraw anytime. Maximum rm60k per year. No need to go to EPF office. Can just go to those banks which are having business linkage with EPF.

The risks are :- lower than bank promotion interest rate (which is quite unlikely loking at the past record) and government may change the policy on withdrawal or add in some others clauses on full withdrawal.
If you are above 60 then the latter risk on withdrawal may not apply.

1M retirement program does not apply to those who are above 55. It is quite inconsistent, the government has raised the reirement age to 60 and yet the 1M retirement program is limit to those below 55.

I called EPF office yesterday before publishing my post. Those above 55 only eligible for self-contribution program, not 1M retirement saving scheme. The staff mentioned have to fill in Form 61A for self contribution.

Anybody know how EPF calculate the payout cycle? From when to when ? If A person contribute now, will he get his dividend based on this year declaration or next year declaration?

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Added on December 27, 2012, 2:40 pmSaving applies to existing customer too. The promotion end 30 dec 2012.

Just found out yesterday when you bank in for example rm120000, not rm24k has to be in smart saver. It is rm20k in SS and rm100k inFD. My RM never told me this ever since I joined in the saving combo.


This post has been edited by gsc: Dec 27 2012, 02:40 PM

Beginning paragraph mentioned.... ..ensure that the self-employed and individuals without fixed monthly income have their own savings plan upon reaching the retirement age.........This scheme is effective beginning 3 January 2010.

Upon reaching the retirement age ......the retirement age for self employed is 55......unlike public servant (60) and public sector employees

anyway , there is nothing great for those above 55 to join in the 1M retirement saving since they are not entitled to the government contribution

This is what I thought from the understanding of this forum.

For RM 100k, it is not RM 20k which needed to be put into smart saver. It is RM 16666.67 to be placed in SS and RM 83333.33 in FD. Thus slightly more amount to enjoy the 4 % interest.

I used the example of RM 120k which is easier to explain. Based on your logic 20 % of RM 120k is RM 24k has to be put into SS and FD RM 96k which is not true.

The right way is RM 100k in FD and RM 20k in SS. Just a few days ago, I placed my booster saving combo in this way. I suspect my earlier several saving combo. are placed incorrectly as the RM did not show me this way of calculating.

This post has been edited by gsc: Dec 28 2012, 12:38 AM

I have several saving combo matured earlier and continued "renew" as fresh fund in the following way. This is what I did for banks which need fresh fund and my FD is matured in that paticular bank.

Inform the bank Y to IBG my matured FD into bank X and I issued a bank X cheque to bank Y to open the FD on the same day.
I did this by pre-arranging with the bank before maturity.

I used to use Rentas way which caused me RM9 but I found out IBG is free of charge for first two transctions for Ocbc bank account holders and the fund transfer is clear within a day. Of course you have to IBG in the early morning.

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Added on December 28, 2012, 1:04 amMay be there is some confusion on my example. What I am trying to say here is how to calculate the FD and SS ratio when a person has a cheque of an amount of RM 100k.

When a person bank in a cheque of RM 100k to open saving combo, it is not 80k into FD and 20k into SS combination. It should be FD 83333.33 and SS 16666.67 (total 100k).

If the saving combo going to continue in 2013, then the money "mature" in the SS can be used as the SS portion because the SS need not to be fresh fund.

This post has been edited by gsc: Dec 28 2012, 01:37 AM

It depends on the instruction you give at the time of opening the account. If auto renew then will follow board rate but currently Ocbc has a special flat ate of 3.5% for those booster FD which are matured.

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Added on December 28, 2012, 1:34 amWhat I did is is pre-arranged before maturity and sign all the documents and give the cheque earlier. Thus on the maturity date, I do not need to do anything except monitoring the fund transfer.

This post has been edited by gsc: Dec 28 2012, 01:35 AM

Yes. All banks define fresh fund if it comes from different banks or cash

Actually not post dated cheque.....look at it from the angle that bank is keeping the cheque until the date of FD maturity. Bank will not act until FD mature.

Monitor the bank account which you IBG to make sure the money is in.

In case there is a better promotion elsewhere, I just called the bank as long as before maturity date and cancel the placement. I can issue another cheque and go to the bank which has the better offer.

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%

anything on the non-premier FD account? New deal sounds complicated. It seems better rate now is HSBC premier FD with 4.42% for 3 months.

Bro

Thanks for highlighting. My OCBC premier rate (5%) will be matured in Feb that is why I was thinking of moving to HSBC. After 3 months close HSBC account.
I have already a current account with HSBC since 3 years ago.
On point 4. Most banks required minimum balance to be in the premier account and penalty if it is below. It will not affect me as I will close it after 3 months or is there a term mentioning cant close the account after FD maturity?
At one time Citi bank also offered good FD rate for premier customer and I remembered you mentioned in your blog, you joined in and then later closed the account because citi bank always give a better FD rate to new customer than to their existing customers.

I will drop by the bank to know more.

Anyway thank again for sharing the terms here

This post has been edited by gsc: Dec 30 2012, 12:50 AM

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.

This post has been edited by gsc: Dec 31 2012, 10:20 PM

The interest rate is dropping.......but at least Ocbc is stilll continue providing promo....some banks will probabaly promote the most for a year and some even shorter or close the promo when the quota is met.

For the calculation I used by day (multiply by 90 days instead of three months) and I asume there is a deposit of 1k every month into the SS. Thus the total amount is 33 + 2k.
For the SS amount, I calculated based on 30 days and interest added on monthly.

Happy new year all the members

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Added on January 1, 2013, 2:40 amIt is more appropriate and reflect in actual life to compare by month for the two scenario rather than by a year.

For 3.26% p.a. for a month, you may not get the same 3.26% for the subsequent month especially if it is a promotional rate. You may get 3.26 in month one but in month two it may drop to <3.26 and for the subsequent month 3, 4...
By multiplying by 12 months you are making an assumption that the 3.26% rate is fixed for the next 12 months which is unlikely.

This post has been edited by gsc: Jan 1 2013, 02:42 AM

[quote=magika,Jan 1 2013, 05:44 PM]
[quote=Gen-X,Jan 1 2013, 01:55 AM]
Thank for the update Bro.

Like I speculated, OCBC's promo rates would at least match UOB's.
Based on 4.5% with ratio of 2:1 as reported by gsc, I work out the effective interest rate ranges from 3.8% to 3.9667% with Smart Savers (2.4% to 2.9%). Pretty good if deposit RM1K into SS every month.

But to note, the effective interest rate reduces every single day (starting from beginning of the month) since the SS interest rate drops to 0.5% with a single withdrawal. So in order to get the maximum effective interest rate, the deposit should be on 1st of every month (and take note on the clause on the savings portion when withdrawing, e.g. maintain for 90 days or 3 months since February only has 28 days).

Happy New Year 2013

[/quote

Bro, I redo my calculation, if not wrong then Bonus Saver is better than Combo ?

[/quote]

Based on rm 20k what is the effective interest rate you get for bonus saver?

Saving combo is slightly better in terms of interest rate and also do not need fresh fund (can use the fund in SS which is matured after 3 months)

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.

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...

This post has been edited by gsc: Jan 2 2013, 01:12 AM

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

On Bonus Saver, interest earned 300.76

32000 x effective interest rate x 3 months /12 months = 300.76

Reaarranging, effective interest rate = 300.76 x 12 / ( 32000 x 3) = 3.76

This post has been edited by gsc: Jan 2 2013, 11:41 AM

3 months, I am using months and you are using days. 3/12 vesus 90/365

Using month the effective rate is 3.76
Using day the effective rate is 3.81

Just a simple check

32000 x 3.81 x90/365 = 300.6
32000 x 3.76 x 3/365 = 300.8

A difference of 0.05% comparing using month versus day. Since bank is calculating based on day, you are correct on the 3.81% rate

This post has been edited by gsc: Jan 2 2013, 01:18 PM

Supersaver, I pressume you are referring to smart saver in ocbc. Interest is calculate daily. Thus not sure what do you mean by loosing 2 days interest? Any premature withdrawal will end up the lowest interest rate in SS