Lock-in is not good for me.

Nope. I have 0 SGD in September.

I verified it in Excel, if I change the bonus interest crediting date to the end of previous month, then the IRR will be 3.5%. You can trust me on this.

Yes, the good thing is this is a floating deposit, but a 1% liquidity premium... is really putting off... lol

Ok lah depends on your purpose too... for your case maybe it is fine.

You are aiming to earn interest-on-interest. I am not. I am happy earning interest ONLY on my principal. This interest earned will need to be put to better use.

Hence, I don't mind collecting my bonus interest later. Does this make sense ?

Welcome. The more people open SA Sg, the merrier

Oh,you can choose not to lock, but don't know what's the interest will be. Maybe you can try with small amount and see how.

Thank you, bro,... for the further help,...

Emm, what I meant to say was : even if my funds are 'locked-up' for 30days, I'm not too comfortable with it. This batch of funds that I have, are for the REITs. I got rid some portions of my REITs earlier, and am anxious to re-deploy these funds.

'Locked-up' funds are in parked in other places/instruments.

Welcome. I put some money in FSM Singapore money market. The rate avg 3.2%+ for SGD. Can withdraw anytime but not sure how long it takes b4 it reaches one's bank account. Rate not great but I don't like to put all my eggs in 1 basket even if its higher rates (too many scams and with the advent of AI even more scary). I place safety over greed anytime.

Prb could be a money mkt fund has risk towards your capital when you wished to access your capital.

Hence,.... why not the CIMB 'promo' ? It doesn't lock-up your funds, but ok,... TOS' point is good, for the bonus 2% interest, you need to wait for 20 days to be able to access your interest earned.

But you can access ALL your funds anytime without problems and pull-out immediately using SG's FAST transfer.

You will not have principal risk.

If you can withstand the '20-day delay thing', you will be able to earn 3.50% against your basic principal (not interest-on-interest), provided your balance at end-September was $0..

CIMB SG is a bank - protected by the SIDC.

I am impressed by your mental accounting...

Looks like CIMB SG has successfully fooled so many clients...

There is only one rate... 2.7% p.a. It does not matter whether they credit you 20 days later... The cash flow as a whole needs to be considered...

You need to drop the 3.5% idea completely even if you don't earn interest on interest.

When we compare across different products, we use the same compounding frequency when we quote the figures. It does not matter whether you reinvest the interest eventually or not... The convention has to be the same, otherwise it will not be a fair comparison.

This post has been edited by TOS: Oct 24 2023, 05:55 PM

I haven't got CIMB Sg yet. I leave it in FSM because in case want to buy anything, straightaway can and also not to put everything in 1 basket. Yes, the commission sucks but just in case something happens to my other accounts. I have gone through a long list of my bank accounts being blocked, email disabled etc by overzealous people although I did nothing wrong. Have wasted tons of time, $ and frustration. Just because I log in/out several times or do more transactions doesn't mean its hacked/ illegal. Sigh. Bank people especially like to lock your account.

Very well, ... I'll keep an open mind and accept your argument in good faith.

I think in types of discussions like this, the only way is to sit down side-by-side and compare notes and talk. We have no time for this,....

I've just put some funds into CIMB yesterday,...

Perhaps you can help me out a bit here since you already have the spreadsheet. Let's assume I put 100K into my FASTSAVER Acct yesterday. We'll use 100K since it's easier to count using this figure. My Month-end Balance at end-September, 2023 was $1.00, this $1.00 is the Comparison Amt then.

How much interest would I earn by Oct 31, 2023 ?

How much interest would I earn by Nov 20, 2023 ?

I'll match the figures when the dates come. Having a spreadsheet will make the calculating easier.

Same quick calculus. Others please feel free to verify my calculations. Thanks!

 Hansel_CIMB_SG_Interest_Rate_Computation.zip ( 8.65k ) Number of downloads: 19

can you not simulate this fake 3.5%? you have all the details already... just set up the spreadsheet with offset payment of the bonus tier to next month, then work the irr...

ps... you post so many 'fake 3.5%' i had to go cimb sg to check it out...

This post has been edited by dwRK: Oct 24 2023, 08:48 PM

Sorry, I missed something. A lot of things actually. There are many possibilities with tweaking the cash flow. You may withdraw money upon interest crediting, or keep it in account for the next few month's interests.

I edited the Excel file to reflect these 2 possible scenarios. The IRR differs.

 Hansel_CIMB_SG_Interest_Rate_Computation.zip ( 9.33k ) Number of downloads: 6


This post has been edited by TOS: Oct 24 2023, 09:55 PM

Here's my argument with the actual cash flow from my CIMB SG account.

Warning: this is not for the faint-hearted.

 My_CIMB_SG_Cash_Flow__Actual_.zip ( 10.21k ) Number of downloads: 16


This post has been edited by TOS: Oct 24 2023, 09:55 PM

thank... will take a look tomorrow when i have my pc back with spreadsheets... waifu takes over at night for her k drama... lol

been thinking... they do give you 3.5% as shown in their promo... but because of the offset/delayed payments, its not really compounding at 3.5%... i guess that is your problem with the promo... creative accounting by cimb sg...

Exactly bro (I mean uncle...). The 20-day delay is the single biggest factor causing the deviation from the advertised 3.5% rate. Delays in interest on interest accounts for the rest of the error.

Like expanding Taylor series... you have zero order, first order, second order,...

This post has been edited by TOS: Oct 24 2023, 10:07 PM

not just that... they sum up X number of days enjoy Y% n Z%... so is not daily rest

Same thing as Versa, the rebates come in later to match their 4.3%.

Same thing as UOB deposit promos, the promo interest payout in after 3 months of campaign end...

your data confuses old ppl... and hard to validate...

so i rolled my own... for <25k account, is 3.2% effective rate... 3.33% if they didn't forfeit bonus... so not as bad as you think, but anyways, main issues are initial 1st 20-day offset, flat rate calc not daily rest, and zero bonus if less than previous month...

did not do next tiers... next 2 tiers shift in our favors... so up to 75K will be higher than 3.2%... final tier reduces this... but template is here if you wanna try...

 cimb_sg.zip ( 34.3k ) Number of downloads: 6


This post has been edited by dwRK: Oct 25 2023, 12:39 PM

TOS and gents,... I've browsed thru the spreadsheet last night,... easy to understand, and I'm okay with getting that amt as shown in your speradsheet. I may be wondering why does the final line show am IRR of 2.7% though,... what formula did you use,...

But no issue-lar,... I can go with TOS' calculations and receiving the amt shown at the top cells of the spreadsheet.

To me,... it's indeed 3.50% per annum,... "divided by 365 days, then multiplied by the number of days inside the savings acct." The interest paid out on last day of said mth AND on the 20th of the following mth..

Probably my funds won't last till end-March 2023. I'll be starting to average down into my REITs and into the high-yield bond funds as I hear Feds talks.