the use of a bank nowadays
-
Hi,
it used to be good to make use of banks to earn some interests.
now, the interest is like never before. I wonder, are banks more useful nowadays than before to put money in?
if interest is so so so low, what is the usefulness of a bank compared to the past?
i am not sure why money is put in banks who use it for their investment purposes. wow, so nice business. people keep giving them money to invest in return for low low low interest. Ah long also ....
-
actually when ah long (loanshark) loans you money he uses physical cash.
when bank loans you money, they use imaginary money or future money
-
Well, you loan your money to your bank and in turn, the bank loans them to your employers for their business needs and they pay you a salary. They charge a higher interest for loans as they are taking on more risk and give you a lower interest because the bank itself as a counterparty, has a lower risk. If you want to get better interest, you can loan your money to businesses directly by purchasing bonds/bills or even shares.
-
i dont use bank yet
-
well.. banks are better than biscuit tins.
-
well
no one will complain when IR are good..pple will think tat banks are e best things ard to make more money
but when the IR is super low, pple will start to point fingers at bank..
human nature..........
-
i still think with interest...........people still wont make a lot of money with banks.......
-
Originally posted by ChoCoChips:
well.. banks are better than biscuit tins.
LOL!
-
that is you have a small sum of money..
dbs gives a 1.5% interest a year
so if you have 100mil for instance.. you get 1.5 mil for free.. thats for sure...however if you invest it all dirrectly.. you will get risks... would you want to risk/? would u darea take the risks?
-
what are the risks for investing? i wanna learn about how this bank thing works
-
I happened to talk to the bank officers one day and asked him why was the interest so low e.g. 1.3 % pa for up to $0.5 mil.
He told me that bank will not increase the FD interest because at every renewal, the bank will deduct a percentage representing inflation for their own protection.
In doing any business, can we charge our customers an additional profit representing inflation?
Obviously this deduction of an inflation is unheard of in the outside business world except in our little red dot where the government seems to govern using power of politics to protect their own interest.
Just throw open the door like the way the government invites foreign talents to take over any jobs to outside banks and increase the banking licence by one to three more to free up the cartel and conspiracy going on between the banks and MAS who obviously are now trying to protect their own GLCs to make more monies for surpluses at the expense of citizens' retirement saving.
Abolish the Association of Banks as at their own meetings there probably conspire not to rock the boat by allowing individual to offer their own FD rates. They probably quietly toe the line not to offer anything outside the band of 1.3-1.5% pa for up to $0.5 mil.
Don't believe me so go and take the ABS to read.
-
save in biscuit tin, later kanna kapo by grandson ah...
also for the DBS 1.5%, is it a fixed deposit? or need minimum 500K to get 1.5%?from what i know, Standard Chartered have this plan:
if your monthly salary hits above 1.5K, and is banked directly from ur company/cheque deposit.
u will earn 1% interest if ur balance for the month is higher than the closing balance of previous.
thou im not sure if this plan is still active....
-
Keep a small amount in your bank for giro, and top up regularly. The rest transfer to FD or higher interest accounts.
-
is there chances that bank goes corrupt and u dont get ur money back?
-
well there always is a chance, but it's a very small chance.
it's more likely for the bank to become bankrupt than become corrupt as there are alot of strict measure set in place by governmental agencies to prevent such things from happening. includes the bank's own auditors.
-
min need 500k to 1.5%
-
my idea of investment now is to find a foreign bank tht gives better interest rate than the bank in sg, then invest in a foreign currency. if SGD weakens against tht particular currency, i wud earn the bank interest + the currency differences. the risk wud be tht if that currency weakens, the bank interest wud then cancel out each other, of coz must take ur money out if that currency gets damn low la. im still looking for suitable banks in Australia and maybe invest in AUD.
anyway...can anyone tell me what kind of investment would pay compound interests?
-
bank is forcing you all to invest in unit trusts. Actually its a good thing to invest in there. The interest on average is 10-20% a year.
-
u should check out ANZ bank
-
yea im looking at ANZ bank.
hey FirePig, can tell me bout unit trusts?
thanks:D
-
Originally posted by Ed11790:
is there chances that bank goes corrupt and u dont get ur money back?
Yes but not in Singapore. The weakest bank is in singapore is probably hong leong financial bank but even they are quite strong. -
check with yr banks on unit trusts, they have people to take care of unit trusts for u i think
-
the use of a bank nowadays is solely for salary credit.
-
Basically any bank can apply for a licence from MAS to operate here. that's free competition. However, one must meet our strict criteria that you are adequately capitalised and has sound practices in place. We can't have Singapore depositors losing their life savings go under because of some sub-prime issue or BCCI issue. For those too young to remember, BCCI was well connected bank with large branch network in the world. Only MAS was prudent to dis-allow their presence in Singapore.
-
Dear Firepig,
We will not call Hong Leong Finance a bank. It's a finance company unless you mistaken it for HL Bank, which is a Malaysian bank operating here in Singapore. HL Bank belongs to the Quek Faminly in Malaysia. Hong Leong Finance belongs to the another Quek Family in Singapore.
Being a Finance Co, Hong Leong Finance largely lend against assets, that is, they engaged in asset based lending. When borrower defaults, they can fall back on the assets pledged. I would not consider Hong Leong Finance weak financially.