I just applied today for an IQ account today but have to wait two weeks - just like applying for credit card.

The plus for me is the bank will pay for me my utility bills, although Tenaga is not on their list at the moment. Credit card payment is not beneficial though because they won't know the exact amount unlike utility bills.

You'll get a platinum card with 3 yrs annual waiver.

The forced saving part will give an effective interest of about 4% after the fixed 2 years tenure, e.g. depositing RM1k/mth, you'll end up with about RM25k after 2 years.

Vijay, thank you,... wow, 4%, better than everywhere else, even better than the Foreign Currency FDs for the AUS and the NZD. Can we put more than RM 1K/month ? What is the maximum amount ?

No, you cannot - it's on a fixed schedule up to a max of RM5k a month.

After you work out the numbers it's about 4% over 2 years, i.e. not 4% per annum. It's more for "forced saving" rather than for "making money".

If you're willing to take a bet on foreign currency, HSBC has a structured investment that pays up to 42% a year! I bought AUD and made 3+% for 1 month. Go give them a call to enquire.

The key words here are '4% over two years', so the returns are actually less than 4% pa right?

I have a question. Is the Platinum Card compulsory? Noticed that the annual fee for plat card is RM600 after the 3 year waiver... ouch!

Yup, because you're not depositing a lump sum but at monthly intervals over 2 years. So although it's 4% p.a., the nett effect is 4% total after 2 years - otherwise, all their FD customers will be opening this account.

The salesperson told me that the annual fee will be waived if you continue to remain an IQ customer but I'm not sure if that's in the T&C.

At the end of the 3 years, we can opt to remain as an iQ customer, thereby keeping and paying for the card, or we can opt not to continue as an iQ customer. Unless, of course, they waive the fees.

Ah very enlightening. Thx guys!

I see that this account is more about convenience than anything else....

The savings plan isn't really that great considering the staggered placements & 2 yrs tenor.

One thing more to consider is card theft could be potentially more dangerous since it is linked to your current / savings account! (although the card still looks very chun imho )

This post has been edited by June_llk: Feb 5 2009, 11:37 AM

I think the biggest drawback in this iQ program is the account maintenance fees that we have to pay.

If you look at the website, it's RM5.00 per month.

Secondly, don't forget that we have to keep a minimum of RM 5000 always in the Current Account, this will not earn us any interest every month.

Therefore, our 'monthly cost' here would be the above 2 factors.

We then need to use the 4% pa interest earned to offset the above 'monthly cost'.

For an individual who does not have a Current Account yet, nor a CC yet, it would be good.

Otherwise, I wouldn't know the advantages of opening an additional account as the iQ.

Ok, here's why I decided to open an IQ account...

1. OCBC pays my utility bills every month. I have lots of bills because I have more than 1 property, so this alone is worth the RM5.

2. The "forced-saving" plan pays a relatively high 4% p.a., good if you plan to save up a sum of money to use in 2 years time - in my case, it'd be a new MPV.

3. I like how the current account can draw from the card's credit limit and vice versa. This way, your cheques are less likely to bounce (happened to me once because I forgot my bank balance) and you have at least RM5,000 extra credit limit.

4. You get a platinum Visa credit card for free.

RM5,000 for such "extra" privileges is not a lot of money. I'm a HSBC priority customer and I have to maintain at least RM200,000 in my account or I'm charged RM150/mth.

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

June: what happened to iqmall.net? Did someone at OCBC forgot to renew the domain name and the website had to close down?

This post has been edited by wirelessdude: Feb 2 2009, 08:15 AM

visited the penang ocbc today.

was told that the 4% is no longer applicable since BNM has been lowering rates lately. it is now around 3% or so only.

finally, the ocbc ppl are now pushing the OCBC Builder product, which is a hybrid between savings and endowment plan. the savings portion of this plan gives something like 3.28% while the endowment portion is guaranteed up to certain percentage.

it is also a forced saving type of plan.

Erm, let me check on it. It should be still functioning

Thank you,...

Well, on my part, I have people running all those things and chores for me, like tracking my acocunt balance so that my cheque does not bounce, ensure my ALL my tenants pay their utility bills every month since the prop utilities are under mine and my company's name, etc, and other chores.

It is a sunken cost to me, thus, I don't wish to have a duplicate expense. RM5 is not a lot, but we are talking about money management here.

Having one Visa and one Mastercard Plat cards are sufficient for me, don't need another one.

If the 200k left inside the HSBC account yields something, then it's worth it, otherwise, it's best to be in other vehicles.

About that structured deposit from HSBC, I'm afraid I am not so much for structured deps anymore, I am very deep in them from all that I have bought in Sgp and Canada.

By the way, HSBC Priority Customer for 200k is not a big deal, that's just USD55k.......

I wanted that 4% from iQ because this is one channel of diversification for my RM, to be safe in the highest possible FD instrument in RM.

I was about to say one more thing - but lookie got ahead of me - it's that 4% can drop anytime,... even after you have signed-up for the iQ,....... Now it has dropped !

This post has been edited by June_llk: Feb 5 2009, 11:37 AM

Hi June,

If enrol this week, r we still eligible for the 4% interest rate?

Post deleted


This post has been edited by June_llk: Feb 5 2009, 11:38 AM

Hi June,....... what is the interest rate for the savings plan under iQ now ? Is it still at 4% ? Thank you,......

June: Why have you deleted all your posts?

Btw, I've given up on OCBC IQ. It's already been 1 month since I applied but until now there's no news yet. Last I asked the sales person at OCBC, she said it sometimes takes 2~3 weeks.

I personally find that ridiculous because it's not like we're borrowing money, but instead we're putting money with the bank. Even then, my loan at HSBC 2 weeks ago was approved in a matter of days. The people at OCBC should really do something about this, especially when banks are so competitive nowadays.

The RM 5 per month has to be paid even if we maintain the minimum of RM 5,000?

Also the RM 5,000 does not earn any interest...so assuming that we can get 1.5% putting this RM 5,000 elsewhere, there is an additional indirect cost of RM 75 per annum from the lost interest...

The cost adds up to quite a bit

Seem like OCBC iQ is very good... I am interested to apply....