Any PRS funds available? Also, not sure if worth it to park RM12k per year in UT if there is a RM20k cap starting from February 2020.

Great info.

If you purchase RM1000 UT monthly, the extra 2% is only for money up to 50K. If you purchase RM3000 UT monthly, it goes up to 100K

I did the exact same analysis as the guy did, with the only difference being that the starting capital was 99k instead of 10k. There is also no randomness in the starting balances for each month. The reason I did this is to calculate the theoretical maximum you can earn as the Maximum Deposit Balance that is eligible for the interest rate is capped at 100k.

In this case, you stand to earn more due to the interest acting on a much larger amount of starting capital. The effective interest is 4.92%. This is wayy higher than all FDs and the bond fund itself.

Ofc, you do need to have a lot of starting capital to begin with. It's probably why there are harsh conditions in the first place. The product is to cater to those who have plenty of money to spare.

My analysis
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Then let me take that init account.

If you invested 1k a month into the UT and only earn 2% on 20k rather than the whole 100k. This is what you will earn in effective interest. 3.66%

However, if you really have the money and can throw in 6k into UT investment. Things look a bit different. Because of the increase of the monthly UT investment. I had to recalculate the value of the UT investment after 1 year at 4.0% annualised rate. Also, I've increased the monthly deposit to 7k in the account to keep it from dropping below the monthly average balance of 100k since the UT is taking 6k every month.

4.38%

Dropped by Taipan Subang branch to enquire about their ever mysterious 2% invest/insure option:
i. Insurance/savings plan
It's a 60 month/5 year plan partnering with Prudential, you get to pick from select Eastspring funds to allocate money into. About 20 of them all together including local equity, global equity, local bond and janky global high yield bond. I stopped the banker there before he got all excited about a savings plan with India and China funds.

ii. UT
RM1000 a month @ 2.5% sales fee. No lock in period can stop/start anytime. Sales fee can be reduced to 1.5% for whole tenure if lumpsum RM5,000 the first month and subsequently RM1,000 monthly.

From the top of my head (I was shown the funds from screen) - funds houses Aberdeen, AmInvest, Eastspring, Principal, Franklin, Templeton, RHB. Notably missing are Areca, Kenanga and United. All in about 190 funds, with some of them wholesale which require qualification of HNWI based on RM3mil AUM or 300k annual income.

Based on my calculation (hope it's right) with RM20,000 average balance in account, you'll be earning back the sales fee 4th month onwards if RM5000 initial lumpsum was done to lower the sales fee to 1.5%.


*Invest interest 2% per month derived from simple calculation 20000*0.02/12

Roughly how much cash to open this account ya?

RM0 for me. But maybe special case as I already had a stan chart credit card (but not savings account). The CS officer just told me to transfer money in from another bank account once the account showed up on my online banking portal.

I received two miscalls from this number ‭+60 3 7651 8500‬. It says SCB when I search, does anyone recognize if it is legit or their pricing solutions sales people?

Thanks, sorry for digressing from the topic.

Is there any smart way to block these sales calls? Without visiting the branch. I feel like I am blocking all of SCBs calls due to them.