In a sign that interest rates in general would soon be increasing, Standard Chartered Bank is offering time-limited interest of up to 1% per annum on savings deposits in its e$aver accounts. CIMB Bank runs a similar promotion.
|Deposit Balance||Basic Interest||Bonus Interest|
|Less than S$50,000||0.2%||0.8%|
|$50,000 to less than $200,000||0.3%||0.7%|
|$200,000 and above||0.4%||0.6%|
There are "no minimum balance" and "No lock-in periods". The main terms and conditions are that:
- The bonus interest applies only to "fresh funds", which refer to funds which do not originate from any existing account with Stanchart.
- The promotional period is from 1 Jun 2010 to 31 Jul 2010 for existing e#aver account holders, while it is from 1 Jul to 31 Jul 2010 for new customers who sign up in June 2010.
- For those unfamiliar with the e$aver, it is a bare-bone "no passbook, no statement, no ATM card" account, accessible only via Internet banking.
CIMB's offering is not time-limited, but for a depositor to enjoy the maximum 1% interest, a monthly top-up (incremental deposit) is required. Otherwise, the interest rate is 0.5% per annum, There is also a minimum deposit of S$5,000 to start an account. StarSaver's advantage over the e$aver is that the former provides free cheque books and a monthly statement.
While not very compelling, the e$aver and StarSaver accounts have one of the highest advertised rates for a Singapore dollar savings account, since the financial crisis began. It is however an ominous sign to people who have signed on floating-rate home loans.