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2%+ Interest Rate Deposits - 2019

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  1. #41
    Quote Originally Posted by shri:
    @pin - may be because your average relationship balance did not increase?
    Probably this.

    From HSBC in Singapore but the explanation in the first bullet point on page 3 is quite clear:

    https://cdn.hsbc.com.sg/content/dam/...rb-booklet.pdf
    pin likes this.

  2. #42

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    Quote Originally Posted by MandM!:
    If stocks are cheap 2-3 months later, I'm sure that they will be even cheaper 4-6 months later.
    Not on September 21st 2018

  3. #43

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    Seems Premier can get 2.35 from HSBC: https://www.hsbc.com.hk/content/dam/...fund-offer.pdf

    BEA also told me they offered 2.4.


  4. #44

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    HSBC Premier = account balance > HK$ 1 000 000.
    I'll think on that.


  5. #45

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    hmm I have millions of $ sitting in a mortgage offset account which saves me 2.375% on my mortgage. If I put this into a fixed deposit instead it will earn about the same %, so at first appearance this seems to be pointless. However, then I will be paying more home loan interest which is a tax deduction at the end of the year. So is this another new loophole to enjoy more tax savings?


  6. #46

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    Quote Originally Posted by bdw:
    hmm I have millions of $ sitting in a mortgage offset account which saves me 2.375% on my mortgage. If I put this into a fixed deposit instead it will earn about the same %, so at first appearance this seems to be pointless. However, then I will be paying more home loan interest which is a tax deduction at the end of the year. So is this another new loophole to enjoy more tax savings?
    Those mortgage backed interest based accounts usually only let you deposit up to 50% of your mortgage balance to receive interest. So once you have a bit of cash, time deposit is still needed.

  7. #47

    FWIW, DBS is offering tax loans of up to $1.5 million at 1.78% *... but the repayment period is only 12 months so I'm not sure if any arbitrage with new money deposits is worth it.

    Two more banks roll out tax loans | The Standard

    * need to check if that is APR or something else - the article doesnt' say.

    bdw and pin like this.

  8. #48

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    Quote Originally Posted by traineeinvestor:
    FWIW, DBS is offering tax loans of up to $1.5 million at 1.78% *... but the repayment period is only 12 months so I'm not sure if any arbitrage with new money deposits is worth it.

    Two more banks roll out tax loans | The Standard

    * need to check if that is APR or something else - the article doesnt' say.
    DBS offer a flat rate per month of 0.08% when borroring $1.5m. If you repay over for 12 months, this works out to APR of 1.78%. If you repay over 24 months, this works out to APR of 1.85%. These are very good rates and matches the best I have seen in previous years. It really is a no brainer decision if you can borrow $1.5m for 12 months at 1.78%, stick it in a fixed deposit for 12 months earning 2.5%, So you make 0.72% which is HK$10,800 for doing nothing, zero risk, you put none of your own money down, just borrow it from one bank to give to another. It seems ridiculous to me. Why doesnt everyone do this to get a free $10,800 handout right now?

    https://www.dbs.com.hk/personal/promotion/tax-loan
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  9. #49

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    Quote Originally Posted by bdw:
    DBS offer a flat rate per month of 0.08% when borroring $1.5m. If you repay over for 12 months, this works out to APR of 1.78%. If you repay over 24 months, this works out to APR of 1.85%. These are very good rates and matches the best I have seen in previous years. It really is a no brainer decision if you can borrow $1.5m for 12 months at 1.78%, stick it in a fixed deposit for 12 months earning 2.5%, So you make 0.72% which is HK$10,800 for doing nothing, zero risk, you put none of your own money down, just borrow it from one bank to give to another. It seems ridiculous to me. Why doesnt everyone do this to get a free $10,800 handout right now?

    https://www.dbs.com.hk/personal/promotion/tax-loan
    According to most posts here, people earn peanuts and thus the majority of people would not even be eligible for those loans. Those with lower salaries would have much higher APRs if you look at the rate it is depending upon the money borrowed.

    12-24 month repayment is not that ideal either.
    traineeinvestor likes this.

  10. #50

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    Original Post Deleted
    Sorry you are right I forgot you need to service the repayments . But probably could still put some of the money in a 3 month fixed deposit, some in 6 months, some in 12 months.

    Or do as I did and borrow for 4 years at the same rate. It reduces the payments to something more manageable.

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