I realized there was an inefficiency in the way my $$$ army was allocated amongst my banks in my previous post, thanks to a comment by a reader:
https://financeopti.blogspot.com/2024/05/re-optimizing-my-deposit-accounts.html
The problems were that I assumed:
- The max deposit for bonus interest amongst the banks is only 100k
- UOB bonus interest for spend can only be earned with a credit card
It turns out the above is not true.
For 1, the max deposit UOB allows to earn bonus interest is 150k instead of 100k for most other banks.
For 2, it turns out UOB allows bonus interest for spend to be earned on a debit card as well! See below:
As such, I re-calculated the interest I would get from my banks:
It turns out UOB now gives highest interest of $498.96, followed by Trust which is $437.50. This is $60 more per months if I put my money in UOB compared to Trust.
For all my other spare money outside of the $150k, I will put it in SCB to enjoy this promotion:
Great fine tuning ! SCB esaver of fresh fund - can use player 1 , player 2 strategy. ie you put the money in, then when the promo ends, take out and put the monies in someone you trust bank account (eg wife, parent etc), then repeat. I am also on a sabbatical and started around the same time as you . Recently, i reviewed my sabbatical goals so that maybe something you can look at now that you have crossed the 1 year mark. Eg BTO Property purchase - is that really something that you need ?
ReplyDeleteYes. First BTO, then car. The aim is to achieve all these without losing FI status.
Delete