Saturday, August 05, 2006

My 4% fund

From the few places that I have stayed for a little while - Malaysia, US and currently Singapore, Singapore's deposit interest rate has been the most dismal. Currently, the rates for a savings deposit is about 0.25%. That means if you have 10,000 Sing dollar in a savings account in the beginning of the year, you will get only $25 at the end of the year. Yes 25 stinking dollars. If you have breakfast at Starbucks and then take a taxi to the bank to collect your one-year $10,000 interest, the breakfast and taxi fee would have almost wiped out all your interest. Moreover, $10,000 savings to a salary earning adult like me is ultra difficult to save (of course, with my lifestyle I almost spend it all).

Well, my colleagues and I have been scouring the banks for a better deal and quite recently there has been a few 'limited time only' 2.8% fix deposit rates if you put 20,000 and above. Good rates compared to 0.25% but $20,000. Somehow, I think I can do better than 2.8%. I have always boasted to the colleagues that I can top the 2.8% offer. I told them if they put money with me I will give them a 4% fix rate. Surprisingly, none has taken me up on the offer. I don't know why not!! Do they think I would run away with their money?

Lately, a bank has called me up and said they would give me a 5% loan for six months. 5% is not too far from what I am offering my friends. I have been thinking of taking it up to see if I can get back more money with it. Very tempting. I will let you know if I take up the offer. The chances of me taking up the loan is very high. Very high indeed.

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