笨mummy always do a spring cleaning of her saving accounts, fixed deposits and SSB on an annual basis. Her way to do it is:
1) List down all your saving accounts, fixed deposits and SSB
2) List down your outstanding debts.
3) Review -
笨mummy has done her review and include it in this blog for sharing purposes below:
1) List down all saving accounts, fixed deposits and SSB
Saving accounts and the prevailing interest rates (all figures round down to nearest hundreds)
3) Review
$120,000 (in UOB One account, DSB Multiplier & SSB Feb 18) out of $203,400 is earning higher interest than the outstanding mortgage and 笨mummy is fine for them to remain status quo. For the remaining $83,400 that are earning less than interest rate below 1.30%, need to do an in-depth review and see whether to close the account, reduce the balance or remain as it is or use them to pay off the housing loan.
a) UOB One Account - $1,000 @ 0.05%
The $1,000 in the UOB one account is meant to be a float for the 3 bills payment by GIRO so 笨mummy does not need to constantly monitor the balance of her account.
b) POSB Joint Account with hubby - $500 @ 0.05%
The $500 amount is the minimum amount to prevent any fall below fee for this account. The account is meant for salary crediting to hit the criteria for both her and her hubby's DBS Multiplier accounts.
c) POSB eMSA Account - $200 @ 0.05%
This account is opened during a DBS/POSB promotion and there is an early closure fee if close within 6 months of opening. So 笨mummy has to keep this account for another 2 more months.
d) POSB Passbook Account - $11,000 @0.05%
This account is being used for accepting payments for Carousell sales and other ad-hoc online sales. The minimum sum to maintain is $500 to prevent any fall below fee. Having $11,000 in this account seems to be high given that this account is meant for receiving payment and would not have any outflow. However, 笨mummy wants this account keeps trace of her sales income from non-employment and does not want to have it mixed up with other saving accounts. Though tempted to switch to OCBC Frank account, most people in Singapore have POSB or DBS accounts, it is definitely better to use a POSB account for this purpose.
e) OCBC Frank Account - $3,400 @ 0.20%
The amount inside this account is meant for personal spending. Every month after receiving salary, a fixed amount is transferred to this account. Daily expenditures, such as transportation, meals, personal handphone bills, insurance premiums are funded by this account.
f) SCB eSavers - $57,300 @ 1.05% (based latest promotion rate)
笨mummy is unlikely to touch this as the money is meant to fund her investment in shares when there is a bargain that come about. She needs the money to be in a SCB saving account for its liquidity and ease of transfer to the securities settlement account for online equity trading. This is by far the best account she could get from SCB.
g) SSB Sep 17 - $10,000 @ 1.15%
The interest rate for the SSB Sep 17 is only 1.15% for first year, 1.32% for second year and an average of 2.12% for 10 years. It makes better sense to redeem this SSB and reinvest in the next one - Mar 2018 or Apr 2018 to get a better rate.
4) List down action items and act on them within the next 1 month
Have you done your spring cleaning yet?
1) List down all your saving accounts, fixed deposits and SSB
2) List down your outstanding debts.
3) Review -
- Your reason for having the saving account and whether is the need for the account is still valid or relevant now.
- Consider whether are there better saving accounts out there that could offer you something better for your money.
- If the interest rate from the saving account is lower than your outstanding debt interest rates, then you may consider whether you are better off using the money from the saving account to pay off the debt.
笨mummy has done her review and include it in this blog for sharing purposes below:
1) List down all saving accounts, fixed deposits and SSB
Saving accounts and the prevailing interest rates (all figures round down to nearest hundreds)
- UOB One Account - $50,000 @ 2.46%
- UOB One Account - $1,000 @ 0.05%
- DBS Multiplier Account - $50,000 @ 1.90% or 2.0%
- POSB Joint Account with hubby - $500 @ 0.05%
- POSB eMSA Account - $200 @ 0.05%
- POSB Passbook Account - $11,000 @0.05%
- OCBC Frank Account - $3,400 @ 0.20%
- SCB eSavers - $57,300 @ 1.05% (based latest promotion rate)
- SSB Sep 17 - $10,000 @ 1.15%
- SSB Feb 18 - $20,000 @ 1.55%
2) List down your outstanding debts.
Debt and the prevailing interest rate
- Housing loan - $240,400 @ 1.30%
3) Review
$120,000 (in UOB One account, DSB Multiplier & SSB Feb 18) out of $203,400 is earning higher interest than the outstanding mortgage and 笨mummy is fine for them to remain status quo. For the remaining $83,400 that are earning less than interest rate below 1.30%, need to do an in-depth review and see whether to close the account, reduce the balance or remain as it is or use them to pay off the housing loan.
a) UOB One Account - $1,000 @ 0.05%
The $1,000 in the UOB one account is meant to be a float for the 3 bills payment by GIRO so 笨mummy does not need to constantly monitor the balance of her account.
b) POSB Joint Account with hubby - $500 @ 0.05%
The $500 amount is the minimum amount to prevent any fall below fee for this account. The account is meant for salary crediting to hit the criteria for both her and her hubby's DBS Multiplier accounts.
c) POSB eMSA Account - $200 @ 0.05%
This account is opened during a DBS/POSB promotion and there is an early closure fee if close within 6 months of opening. So 笨mummy has to keep this account for another 2 more months.
d) POSB Passbook Account - $11,000 @0.05%
This account is being used for accepting payments for Carousell sales and other ad-hoc online sales. The minimum sum to maintain is $500 to prevent any fall below fee. Having $11,000 in this account seems to be high given that this account is meant for receiving payment and would not have any outflow. However, 笨mummy wants this account keeps trace of her sales income from non-employment and does not want to have it mixed up with other saving accounts. Though tempted to switch to OCBC Frank account, most people in Singapore have POSB or DBS accounts, it is definitely better to use a POSB account for this purpose.
e) OCBC Frank Account - $3,400 @ 0.20%
The amount inside this account is meant for personal spending. Every month after receiving salary, a fixed amount is transferred to this account. Daily expenditures, such as transportation, meals, personal handphone bills, insurance premiums are funded by this account.
f) SCB eSavers - $57,300 @ 1.05% (based latest promotion rate)
笨mummy is unlikely to touch this as the money is meant to fund her investment in shares when there is a bargain that come about. She needs the money to be in a SCB saving account for its liquidity and ease of transfer to the securities settlement account for online equity trading. This is by far the best account she could get from SCB.
g) SSB Sep 17 - $10,000 @ 1.15%
The interest rate for the SSB Sep 17 is only 1.15% for first year, 1.32% for second year and an average of 2.12% for 10 years. It makes better sense to redeem this SSB and reinvest in the next one - Mar 2018 or Apr 2018 to get a better rate.
4) List down action items and act on them within the next 1 month
- Redeem SSB Sep 17 and reinvest in the coming SSB
- Close POSB eMSA account in Apr 18 when it passes the 6 months period where the early closure penalty no longer apply.
Have you done your spring cleaning yet?
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