QUOTE(Deal Hunter @ Jun 30 2016, 06:04 PM)
The story illustrates the question of good days since people did not understand that the main idea was to avoid bad days at the end of the month. This is becuz somebody got the wrong idea that I was talking about specific good days, wanted to know why I am not answering clearly whether there was such a thing as a good day. The answer is:- Depends on which date, how long, when the step rates change following your effective date and the maturity date. Is it relevant? Yes and No, depending on how efficient holding funds are handled. Most times the required principal will take some time to be collected into some temporary holding place like Maybank GIA-i or in very short term instruments, so the loss is minimised. This is what is considered sweep and scrape. Not withdraw the money and keep in a bag to carry to the bank on an extra good day.
The story is useful only for kiasu people and high net worth individuals. However, if funds just happen to be available then, it is up to the individual to calculate whether it makes sense to wait. For most depositors, their promo amounts will be at least 10k or about 500 time less than in the story and so the amount is small and not worth bothering about. The question of losing money while waiting is simply becuz the money is not properly kept in a higher yielding place or there are no fresh income flow.
Think of the future and how many promos you will miss out if you do not adjust your maturity dates to earlier in the month. Don't think short term, don't think about reacting to now. Be pro active and put your house in order.
Start with making sure your new placements are scheduled earlier in the month. Do not wait, any date before last week of the month is okay and good.
Thanks for sharing.
These are my opinions.
1) When FD interest rate is trending downward, it's best to lock in immediately whenever fund is available. The promo rate is likely to end anytime without notice regardless of "good days" or "bad days" when quota reached. Nowadays, one rarely see better then previous month FD rate upon entering a new calendar month, so holding on to the next beginning of the month is unnecessary.
2) For HNWIs, they would have spread out funds in every banks. To micro manage the funds back and forth FD > MBB GIA > FD in order to minimize interest loss while holding the fund till the next calendar month is technically not feasible. HNWI's amount exceeds online IBG limit anytime, OTC between banks is a waste of HNWI's executive time, more so must OTC only in the morning peak hours otherwise be prepared to lose 1 day interest, hence becomes penny wise, pound foolish.
3) If FD rate is trending upward, you do have a point though.
Jul 1 2016, 02:11 AM
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), Bangkok Bank or MBSB as places for FD. More like Huh? What?
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