Pathetic Bank Interest Rate

Hi Fellow Automated Millionaires,

Today I received a very important email from Standard Chartered. They are reducing the e$aver's Interest Rates from 1.5% to 1.2%. This is really Pathetic.

I am a very strong believer of High Interest Saving Account and ever since Standard Chartered came out with e$aver, I am a Champion for it. But, they reduced the interest rate from 1.98% to 1.5% and now from 1.5% to 1.2%. Though it is higher than conventional savings account of 0.25%, but it is NO longer the highest interest saving account in Singapore.

So what is the highest? Citibank Step-Up Account at 2% (terms and conditions apply). And this is where my Emergency Fund lies. Although, Fundsupermart.com's Cash Funds Interest rate is higher at 2.119% as of 28th Oct 2007 (nett of the expense), but it is still not as liquid as Citibank Step-Up Account. Hence, not justifiable for that small amount of difference in Interest Rates.

This is a breakdown of my Automated Funds dated 30th Oct 2007:

1. Citibank Step Up Account - Emergency Funds (10%)
2. StanChart Own xSaver - Education (5%)
3. StanChart Joint e$aver - Bills (Mobile, Cable TV, Internet, Insurance)
4. StanChart Own e$aver - Basic Necessity
5. StanChart Joint xSaver - Play (10%)
6. Financial Freedom Fund - Direct Debit from Citibank Account (10 ~ 15%)
7. Charity Fund - Direct Debit from Citibank Account (1%)

I am comptemplating to put my Financial Freedom Funds into Cash Funds to achieve a slighty higher Interest rates, but since I don't have S$20,000 in my CPF (updated singapore law) by April 2008, I will have to use my Financial Freedom Funds either cash or through SRS (for tax relief) for my 25 years Retirement Fund Plan.

But most importantly, all these have been automated. Hence, freeing me from having discipline to put my money into this and that accounts and for investment :) That is really wonderful! Hence, that is why we are Automated Millionaires!

Disclaimer
The above information is wholy author's personal opinion. It does not intend to replace any professional advice. If legal advice or other professional advice, including financial, is required, the services of a competent professional person should be sought.