Citibank InterestPlus Savings Account

Earn up to 3.5% p.a. more on your savings

InterestPlus Saving Account is the latest new savings product launched by Citibank this week.  This product is specifically targeted at the emerging affluent segment (i.e. customers with S$50,000 to S$200,000 investible assets). 

In addition to the base savings account interest, customers will receive bonus interest of up to 2.5% p.a. through unit trust investment, insurance purchase and credit card spend.  Customers will also enjoy an additional bonus interest of 1% p.a. if they take up a home loan with Citibank.

Here's how the 3.5% p.a. bonus interest add up:

• Buy insurance with monthly S$250 regular premium or S$25,000 single premium - 1.2% p.a.
• Invest in Unit Trusts (of 2.5% sales charge) with monthly S$250 regular savings plan or S$25,000 lump sum - 1.2% p.a.
• Spend S$25 monthly using Citibank Credit Card - 0.1% p.a.
• Take out a new home loan of at least S$250,000 - 1% p.a.

Bonus interest is paid:

• Over the first 12 months for investment, insurance and home loan.
• Every month for credit card spend.
• Capped at the first S$50,000 in the account.
• On top of the prevailing base savings account interest.

As part of the new account signup, till 30 April 2013, receive S$150 Takashimaya shopping vouchers when you fund S$50,000 for 3 consecutive months and complete a Personal Financial Report and Investment Risk Profile; or S$20 Takashimaya shopping vouchers when you fund S$10,000 within the first month from the account opening date.

Visit http://www.citibank.com.sg/gcb/deposits/interestplus_savacc.htm for full details, promotion, FAQs and terms & conditions.

OCBC Bonus Plus Savings Account

Watch your savings grow faster with higher interest rates

I was surfing OCBC website and the tag "Earn up to 1.18% a year when you deposit $10,000" caught my eye.  I followed the click through link and was brought to the OCBC Bonus Plus Saving Account page.

Here's how the account works:

• The account is a statement savings account with monthly statements availed.
• An initial deposit of S$10,000 is needed with no monthly minimum balance requirement.
• Singaporeans, Singapore Permanent Residents and Foreigners age 15 and above are eligible.
• The base interest rate is 0.2% p.a.
• Monthly bonus of 0.25% p.a. will be given if there is no withdrawal within the calendar month.
• Quarterly bonus of 0.73% p.a. will be given in the third month if there is no withdrawal within the calendar quarter.
• Base and bonus interest will be credited into the account on the first business day of the following month.

Curious on the average interest rate, i computed the interest amount an accountholder would earn based on a S$10,000 deposit for a full 12 calendar months.

Average interest earned:

Month	Interest (% p.a.)	Interest Earned (S$)
1	0.45	3.75
2	0.45	3.75
3	1.18	9.84
4	0.45	3.76
5	0.45	3.76
6	1.18	9.86
7	0.45	3.76
8	0.45	3.76
9	1.18	9.87
10	0.45	3.77
11	0.45	3.77
12	1.18	9.89
		69.55

Effectively, the accountholder would earn S$69.55 over a one year period which translates to an average interest rate of 0.6955% p.a.

Seems like i would be better off by putting S$10,000 into the CIMB SGD Step Up Fixed Deposit and earning S$105 interest (i.e. average interest rate 1.05% p.a.) instead.