POSB
Effective date: 14th October 2011
SCB
Effective date: 1st Sep 2011
Does it make a difference to you? It doesn't make much difference to me, since I don't have the bulk of my networth in cash. Used to have a lot more cash of course, but had been paying for my renovation and furnishing. The bulk of my cash used to be in MMF, which at last count, gives an annualised rate of around 0.42% to 0.46% (depending on how you count it). However, with the recent drop in interest across the board for both savings and fixed deposit accounts, I think the returns for MMF will also drop further.
That goes to show that one needs to know about investment these days. You simply CANNOT survive on fixed deposit or worse - savings account. You've got to dirty your hands in the market because the consequence of not doing so can be quite dire.
9 comments :
good for businesses and people who are borrowing to do investments. lol
Banks are too cautious in lending and that leads to low saving rate.
Hi LP,
I also say.
I wrote a piece in March:
To protect our wealth, we have to take risk.
Hi LP,
This is indeed a globalised world(QE3 maybe coming soon) where people is losing faith in fiat money.
And the banks just have too much of it due to QE?
And indeed this is a "New World". Where learning and application of investment knowledge is a must beside your vocational skill.
Pity those who are not interested or have no inclination. In my opinion, you have no choice but to learn to invest if you want to "retire" financially free or at least don't run out of money in your old age.
So those who can or able, better convert some cash to some "solid assets":- stocks, real estate(is reits counted?), gold, bonds, etc.
i think these will at least help you to retain your "purchasing power" right into the future.
And don't be discouraged, most bloggers here know i started to invest in SGX at the age of 40.
Another words, better late than never is a true saying. What ever your age, it's never too late to learn to start investing. Blog here and you can learn from all these very experienced investors.
i am also still learning. i believe there is no end to learning.
Shalom.
Hello LP,
Savers and those who manage their money conservatively are now being "punished".
Suddenly, the world and the "rules" we knew and lived by have changed... Now what we get is negative interest after inflation.
And this is the most dangerous time if we suddenly want to get our "old" safe and steady 2.5% to 5% yields...
Lot's of eager con-artists (gold scam, get-rich-quick seminars), snake oil salepersons (wholelife, investment linked policies, landbanking, etc) and bankers (structured products, synthethic ETFs, etc) circling above to snare this "new" target group with lots of cash on their hand.
It's so easy when there's fear - you are losing money each day you are putting money in a savings or fixed deposits!!!
Hi LP,
I've always been telling my wife that very soon, we will end up paying the banks 0.25% per annum for keeping our money for us! Sounds like it's coming true!
Hi CJ,
True true, what we see is just one side of the fence. The other side is probably jumping for joy because of the low interest rates :)
Hi bro8888,
Is that true in sg? Is that the reason why the savings interest rates are low?
Hi AK,
I read that. I agree totally. Without venturing out to take a calculated risk, the only option is to let others take control of your direction. I would never allow that to happen if I can :)
Hi temperament,
Indeed, we all have to do our part to learn more about investing. If you don't learn, you better earn a lot from your job! haha!
Hi SMOL,
That's right, there's more and more things to entice people who had been putting into safe deposits for their own lifetime. That's where the danger lies - too much money, too little knowledge and too much trust can result in too many heartbreaks.
Hi mw,
Wah...I really hope that day won't come!
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