Why I signed up for the DBS Multiplier Account

I recently signed up for the DBS multiplier account because of the higher interest rates that were offered compared to a normal savings account.

The process of opening the account was fuss free as everything was done online through internet banking.

Basically, the account offers a higher interest rate depending on the cashflow of that account. The cashflow is limited to a few items (e.g. salary), and various tiers of higher interest is offered if the cashflow exceeds different levels.

Considering that I had spare cash in another account, it made sense to just open the account and earn a higher interest rate for the time being. Besides, the interest is paid monthly!

President Obama at the White House Correspondents Dinner 2013

Apologies. Realised that the previous upload of the video did not load correctly and only showed a link. Uploading it again for all to view.

 

Bank Promotional Offers for Higher Interest Rates

OCBC is having a Chinese New Year promotion where they are offering interest rates of up to 1.8% per annum or even up to 2% per annum (Premier Banking customers only).  The first offer is called the OCBC Bonus + Savings Account and the second offer is called the Premier Dividend + Savings Account.  The effective interest rate works out to be 0.9% p.a. and 1.00% p.a. respectively.  That is not too bad considering that a normal savings account usually offers much lower interest rates.  Of course, terms and conditions apply (e.g. fresh funds, etc).  But anyone interested ought to check it out.

At the same time, POSB is also offering an account to earn up to 2.014% interest per annum with a POSB eMSA 2014 account.  This requires one to set up a regular monthly savings plan (from $1000 to $3000) into the eMSA account in order to enjoy the higher interest rates.

I have not signed up for any of these accounts but think it might be worth checking it out.  Think the promotions might be ending soon.  So those who are interested ought to check it out really soon. Caveat emptor.

On the other hand, if you are not interested in all this, you might just be interested to read my previous post why it might make sense to top up your cpf account.

Funniest Obama video Yet! Both sides will laugh

President Obama shows his funny side during a memorial dinner that was held sometime during his first presidential campaign. From watching this video, I can see why he won and became president. Not only is he funny, he is also very witty. Enjoy the video!

Why Topping Up Your CPF Might Actually Make Sense

Topping up one's CPF might actually make sense. I am talking about the act of actually making voluntary contributions over and above what you are ordinarily required to contribute either as an employed person or self-employed person. Here are some reasons why it might just be worthwhile.

1. You get tax breaks

Okay, this might not be a big deal to most people. But one actually gets a certain amount of tax relief (capped at a certain limit each year). So if your income is just slightly over a certain tax bracket, it might actually be worthwhile to make a voluntary top-up to pay less in income taxes. Yeah, it is nothing exciting. But if you have spare cash lying around, it might be something worth considering.

2. Higher Returns

For those who are not too savvy with investments, the CPF accounts might actually provide a higher interest than your normal savings account. Yes, some banks are now offering promotional interest rates of slightly above 2% but that is still lower than the 2.5% and 4% interest rate for the Ordinary.Account and Special/Medisave Account respectively. In addition, the first $60,000 in your CPF earns an additional 1% interest. So do the math and it might actually be attractive compared to the paltry interest rates of a normal bank account. Of course, there is no guarantee that the rates will stay that way since these might be subject to changes in the future.

Considering that some people might not be confident of getting a 2.5% or 4% returns on their investment, it might be worth allocating some of that to top up one's account.

Of course, there are some drawbacks in making voluntary contributions. Firstly, the money is locked up until you are allowed to withdraw your money at a certain age. So you need to be very certain that you will not need this money till retirement. Secondly, if you are topping up under the minimum sum scheme, it means you cannot get apply for future exemptions. All these disclaimers can be found on the CPF website.

I know this post is likely to draw some controversy since most people will never think about making voluntary contributions to their CPF. For others though, it might just be one idea that might make their retirement planning a whole lot easier.

Disclaimer: This post is not an investment advice. The author neither encourages or discourages his readers to make top ups to their accounts.

Chinese Scientist Joe Wong Makes Americans Laugh at Radio and Television Correspondents' Association Dinner

This is a really funny video of Joe Wong who cracks up the crowd at the RTCA dinner that was broadcasted on C-SPAN channel in the United States a few years back.  I still find it pretty funny. Love his deadpan face when he tells his jokes.  Think I have watched the video at least 5 times now.  Just sharing it with all to chase the Monday blues away. Enjoy!

 

Krisflyer American Express Credit Card

Recently applied for the Krisflyer Ascend American Express credit card.  The main reason I signed up for it was because of the additional 5,000 bonus Krisflyer miles that first time applicants would enjoy. It is given when one makes a first charge to the card.

In addition, one gets to enjoy bonus krisflyer miles in the first 3 months of usage.  Of course, one thing to note is that the annual fee is waived for the first year.  It is $256.80.  The first two supplementary card fees are also waived.

The earn rate is 1 Krisflyer mile for every S$1.20 spent.  It is not a lot.  But the bonus miles do help.

Anyone cares to share the best way to earn Krisflyer points or airmiles?

Disclaimer:  Credit cards are meant to be used responsibly.  This article serves as a sharing piece. The reader is advised to check up on the relevant facts and figures for themselves.