Not much extra, the opportunity cost of leaving the daily 0.01 MYR interest is probably around 1-2 MYR per annum. You can just leave it there.

We prefer to bankrupt banks faster so we choose to withdraw the interests as soon as they come in.

You should visit the Lowyat FBIH forum more often. Kopitiam is not suitable for improving your financial literacy, obviously.

This post has been edited by TOS: Oct 7 2024, 05:06 PM

You bet!

This thread is very active. In general, all digital banks threads like BoostBank, Rize and previously AEON Bank threads are very active because these digital banks are now offering high rates to attract deposits at the initial phase of their business.

They are now burning cash and paying us depositors "free money". Some halt their cash burn earlier, like AEON Bank, but at the risk of losing customers permanently. Some, like GX Bank opt for a moderate route: slow and steadily rolling out good products while being careful not to irate old customers. Some, like BoostBank, make their interface operations complicated and cumbersome, and hire shit programmers at the backend...

I have a feeling GX Bank will win the race eventually. Let's see.

Haha, no you should diversify. Some in Rize, some in BoostBank, some in AEON Bank, some in your other bank accounts like CIMB, Maybank etc, and little amount in eWallets but be careful of their withdrawal gating system.

In general, 1006.50 MYR at GX Bank will suffice for 4% p.a., anything above that earns 2% p.a. only. You can place another couple of hundreds at BoostBank, and some couple of hundreds over at Rize etc.

Don't put all your money in just one bank. If the system fails for whatever reason all your money will be stuck, even if it's a steady bank like GX Bank. Take no chance.

Let me link you to an old post:

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Basically, the rate paid to you "officially" is 2% p.a., but we know any interests above 0.005 MYR will automatically round up to 0.01 MYR. We exploit this remarkable mathematical aspect of "rounding up numbers" to double the interest rate from 2% to 4% p.a.

The reason behind the 1006.50 magic number limit has to do with the minimum amount of deposit needed to earn 0.005 MYR. The maths is shown in my post above and that minimum number is 91.50 MYR. GX Bank allows for a total of 10 saving pockets + 1 main account, thus 91.50 * 11 = 1006.50 MYR.

Anything above 1006.50 MYR will earn the actual amount (2% p.a. deposits) because the round up trick only works when 0.005 gets rounded up to 0.01 (you double the interest rate...).

Hence, when we say 1006.50, we really mean 91.50 * (10 pockets + 1 account). If you put 1006.50 directly inside the main account of just one of the saving pockets, your interest is only 2% p.a., and you earn 0.06 MYR interests (compared to 0.11 MYR otherwise).

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Err no, the interest rate is fixed. The interest amount is also fixed in our calculation here, it's 0.01 MYR per day per saving pocket/main account, for a total of 10 pockets + 1 main account, so your daily interests earnings are fixed at 0.11 MYR if you follow the 91.50 * 11 method of depositing your money.

Yea, that's correct. GX Bank is good for the first 1006.50 MYR in deposits only. Anything more than that earns 2% p.a. There is a hierarchy of deposits on where you should place your money, from the highest effective rate to the lowest effective rate, courtesy of Medufsaid.

This post has been edited by TOS: Oct 8 2024, 07:33 AM

Yea, can spread your money in multiple banks. GX Bank is renowned for its stability, so if you think you are willing to accept 2% p.a. for a more stable deposit then you can park extra funds above 1006.50 at GX as well, nothing wrong with that.

If you are solely after the effective interest rates, then you may allocate your money following Medufsaid's post above.

Yea sure. Rize is a bit "sot sot" as well sometimes (a pun on your username... ), so spread around in other banks/eWallets as deemed necessary. It is important to note that the interest rates paid on the accounts and saving pockets are not fixed. They change every month. Come back here and check again at the first of every month and see if there are new promotions coming.

As for the edited question, no, you just need to use the main account. The saving pockets are useless. They are just meant for mental accounting, but it is really not needed. They will be useful if daily interests are paid, but otherwise they are useless.

This post has been edited by TOS: Oct 8 2024, 10:44 AM

Yes correct. The thing here is saving pockets and magic number limits are used abused to round up the daily interest so that we can double the effective interest rate. Rize does not pay daily interests, all interests are credited at the end of the month, so it's unnecessary to use any saving pockets.

In theory you can earn 6.6% p.a. on Rize by placing 1.85 MYR into all saving pockets + main account and earn 0.005 MYR interests which is then rounded up to 0.01 MYR one month later, but the capital and interest earned adjusted for time will be too low, so let's stick to the 3.3% usage.

Yes of course sir. Rate is expressed in percentage. The actual absolute amount of interest is dependent on your principal/capital you put.

Sometimes they are unstable. But Rize's customer service is excellent.

Boostbank so far we know they are unstable at times and customer service is shit as well, although their interest rates are the highest at the moment.

Wrong number bro. 1006.50 is total in account, including ALL 10 saving pockets + the main account.

91.50 in each of them. So it should look something like this:





At around 12.15-12.30 am every morning, you will see 0.01 MYR interests credited into EACH of the 10 saving pockets AND the main account. You can leave it there or withdraw out if you find other better places to reinvest the interests.

--------------------------------

As for your question on Rize, yes, on the morning of the 1st of every month Rize will credit interests from last whole month to you and it will be reflected in the "Transaction History" page of the app.

This post has been edited by TOS: Oct 8 2024, 04:02 PM

Correct.

Not necessarily. Again Rize gives 3.3% p.a. on all amounts (we ignore the unrealistic 6.6% p.a. 0.005 round up to 0.01 month-end interest case), whereas for GX Bank your first 1006.50 earns earn 4%, then anything more than that earns 2% p.a.

So, it depends on how much you put. If you only have 1006.50, then all in GX Bank, and the rest put in Rize earning 3.3%.

At the end of month GX Bank will earn you in total 0.11*31 = 3.41 MYR. Rize, on the other hand will pay you 3.3% p.a. * 31/366 (31 days in October, 366 days this year) on whichever remaining amount you put in. If you put in anything less than (3.41*366)/(0.033*31) = 1220, then your absolute month-end interest at Rize will be less than GX Bank. Depending on how much extra you put in Rize, the possible outcomes are:

(i) If you put in less than 1006.50 in Rize: less capital than GX Bank + lower than 4% in effective interest rate (i.e., 3.3% p.a. in Rize only) -> GX Bank gives you more absolute month-end interests than Rize.
(ii) If you put in more than 1006.50 in Rize but less than 1220: lower than 4% in effective interest rate (3.3% p.a. in Rize only), even though you put in a little more money above 1006.50, for the sake of comparison with GX Bank. -> GX Bank gives you more absolute month-end interests than Rize.
(iii) If you put in more than 1220 in Rize, then the extra capital starts to compensate for the lower effective interest rate, and now, your Rize will bring in more absolute month-end interests than GX Bank.

Hope that helps.

Don't complicate your life... 1006.50 in GX Bank, the rest in BoostBank, Rize, and possibly peanut amounts in eWallets will do for your liquid funds yea.

This post has been edited by TOS: Oct 8 2024, 10:31 PM

When we say 4% p.a. on 1006.50, we mean exactly 1006.50, nothing more, nothing less. The moment you put in more than 1006.50, the effective interest rate will start to decline from 4% p.a. and goes all the way down to 2% p.a. as the deposit increases. It's simple to understand. On first day, you earn 0.11 on 1006.50, so your return is 0.11*366/1006.50 = 4%, then the next day you keep the interests inside, so your capital increases to 1006.61, but you still earn 0.11 in daily interests only, now your return becomes 0.11*366/1006.61 = 3.99956% p.a. If you do this for 30 days (about a month), then the effective rate declines to 0.11*366/(1006.50+30*0.11) = 3.9869% p.a. on the last day of the month.

So if you choose to leave your 0.11 MYR daily interests inside day after day the effective rate will decline. The decline will be gradual though, as you can see from the above example. If you are ok with that, then you may leave your daily interests in GX Bank, nothing wrong, it's a matter of how much do you value "convenience", how much are you willing to trade off to pay for the inertia of leaving the money where it should be...

Again, I don't know how much will you save. Whether GX Bank's total interest > Rize or vice versa depends on the relative different on rates and also on the absolute amount of capital you put in. You say "definitely more than GX", is it more than 1220? If that's the case, on based on prevailing rates, then Rize will bring in more interests than GX Bank towards month end. But if your "definitely more than GX" means less than 1220, then your GX Bank interests will still be higher than Rize, due to the higher 4% p.a. effective rate on 1006.50 in GX Bank. It really depends, I can't tell for sure with your statement "definitely more than GX".

And yes, Rize does not limit the amount of money which can earn interests, but remember that the interest rates are subject to revision. Today it's 3.3% p.a. does not mean it will be the case forever. Liquid deposits like Rize, BoostBank, GX Bank are all subject to reinvestment risk, i.e., rates will be lower over time...

Hope that helps.

No, no. You have to remove 0.01 one by one to the main account then transfer out 0.11 MYR in one go thereafter if you wish to transfer out the daily interests and yet guarantee a 4% pa interest rate.

There is a price to pay for earning that 4%...

Yes, assuming you don't top up GX Bank with cash inflows/deposits over time

This post has been edited by TOS: Oct 9 2024, 09:24 AM

No, no Rize pays 3.3% p.a., not 4% p.a.

Your are right in one part, in finance it's a positive net present value that matters, not the IRR... The amount matters a lot more than the rates when comparing monies at different scale.

But first, you got the interest rate numbers wrong... you may want to check that.

And lastly, don't worry too much about the exact allocations. We already gave you a blueprint. 1006.50 in GX Bank, exactly 91.50 in each saving pocket (total 10 of them) + 1 main account (also 91.50). Then the rest dump into Rize to earn 3.3% p.a. till month end.

When time comes round month end, we will update you again on the new rates or allocations So, don't worry yea.

It's too early to say "long-term savings" ya You never know if Rize is going to maintain 3.3% in the coming months or not. Just like FD musical chairs, you may opt to move your money in a "merry-go-round" way across different banks as rates change.

As for your question on news browsing, yea, it depends on whether the original poster is still active in this thread or not. Usually, browse through the pages once or twice a day is your safest bet.

bro, it has been mentioned earlier. You got a consortium of tools available and to be deployed in the following order:

This was mentioned in the post 3931 of this thread: https://forum.lowyat.net/index.php?showtopi...ost&p=110581466

If you already put in 1006.50 in GX Bank, then the rest you can put in BoostBank, Rize etc. Just spread your 1k around in multiple banks to avoid money stuck in one bank when system goes down or offline for whatever reason.

Kena liao... GX Bank finally join the leagues of BoostBank and Rize

Can their customer service beat Rize though?

Good, GX Bank is bleeding cash. They have to give perks for those who stay put.

Best way is to raise the deposit rate to entice users to put money in again... but this will mess up their business plan... so maybe expect some other kind of perks coming?