In this climate of volatility, cash is a safer asset. If you place cash in savings account, it earns low interest rates between 0.1 to 0.25% per year depending on amount saved in three local banks.
If there is no urgent need for cash for the next one year to one-and-half years, why not consider putting cash in fixed deposit or time deposit instead of keeping it in savings account.
UOB and OCBC have promotions for their fixed deposits currently.
The promotion is available with a minimum fresh funds deposit of $40,000 from 1 September to 30 September 2011.
Interest rate for 13-month tenor is 0.828% p.a.
Interest rate for 18-month tenor is 0.938% p.a.
The promotion is available with a minimum fresh funds deposit of $30,000 from 7 September to 31 December 2011 (or earlier date as determined by OCBC).
Maximum Interest rate depending on number of months tenor is 0.88% p.a. for placement amounts from $30,000 to $199,999.
Maximum Interest rate depending on number of months tenor is 0.90% p.a. for placement amounts from $200,000 to $999,999.
Interest rate for 12-month tenor is 0.35% p.a.
Interest rate for 18-month tenor is 0.60% p.a.
Copyright © 2011, limkimtong for Living Investment
The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.