I praised BOC lavishly to all my friends in between the point when I signed up till some time last week. What changed was a local FM airing an advertisement on Maybank’s SaveUp account.
Recall Bank of China’s SmartSaver offers interest rate up to 3.55%. Maybank’s 3% shouldn’t be more attractive, but it is given how I’ve actually been struggling to hit the S$1,500 in months when I’m not travelling.
The net amount of salary being credited to my BOC account doesn’t cross the S$6,000 threshold. These 2 criteria absorbed 1.2% from the 3.55%, leaving me 2.35%. Effectively I’m comparing 2.35% from Bank of China to 3% from Maybank, so I just had to weigh if my effort costs me more than 0.65%.
Assuming a base of S$50,000 in the bank, it’s a S$325 incremental from current state. OCBC’s 360 Account is providing 1.8%. This means a lost income of S$600 when benchmarked against Maybank.
Let’s put this into context, for those people who are earning S$60,000 per year, this is equivalent to a 1% increment. It doesn’t take more than 1 hour to walk into a Maybank and get your account and credit card up and running. Within the hour, you can also download the GIRO form from IRAS’s website to change the GIRO bank to Maybank in order to fulfil the S$300 GIRO criteria. 1 hour, S$600 is not a shabby deal in my opinion.
For those who more than S$1,000 in income tax monthly, there’s additional rebate available (check it out here).
If you are interested, there are 9 products one can choose from in their attempt to hit Maybank’s criteria. Without going into the nitty gritty details, you just have to do three of it. It is similar to what most of the banks want us to do these days. I chose salary crediting, GIRO payment of income tax and spending S$500 on their specified credit card.
My only point for Maybank’s consideration is to improve their offering on their Platinium Visa Card rebate for people of my profile. It’s a basic 3.33% rebate if you spend minimally S$300 for each month over a 3 months period. My profile translates to folks who spend their money on food. Simply because BOC’s Family Credit Card offers 7% rebate on all day dining in Singapore and overseas, I’m still retaining the BOC card.
I was originally concerned if I can hit the minimum S$500 spending on BOC credit card. It seems like a much lower level of struggle as there are fixed spendings. With a 5% rebate on NETs flash pay auto topup, it is essentially working as my ezlink card. The card also gives me a 1% rebate on my telephone bills.
p/s. If you are wondering about UOB One Account and its 3.33%, there are more hoops to jump through to actually get 3.33%. The effective interest rate is only 2.43%. Having said that, I hold this account as well, but purely for the first free cheque book.
Lioness (opportunity cost is a kind of cost)