Assuming an initial investment of S$10,000, no bank offer a rate above 1% for 24 months deposit. Of course, if you have a few hundred thousands to save, then the rate will be slightly higher. Unfortunately for "commoner" like us (including my colleagues), we don't have a few hundred thousands to spare. While collating data, I accidentally discovers that Finatiq.com offers at very high FD rate. It's unbelievable but is stated on its website.
Be A Champion In The World Of Interest Rate
So that's how the bankers become so rich. They offer peanut rates when you parked your money with them. Generally, saving deposit fetched around 0.3% p.a., way below Singapore inflation rate. You actually buy lesser amount of rice (unconsciously) everytime you draw money from your deposit account to spend. I know people will tell me that they don't feel it. That is because they are ignorant; but the fact still exist. And if you borrow from bank for housing, renovation, education, car etc, they charge you very high interest rate. The worst is credit card charges. Remember - ALWAYS PAY YOUR CREDIT CARD BILL IN FULL. In essence, with the pool of deposits, bank lends it out to the mass (business or personal) again at high rate. So one of the basic wealth creation knowledge that everyone should have is this - for spare cash, don't park it in any bank deposit. Spare cash here refers to money that you don't need it for the near future. This is mainly cash put aside for raining days. You are better off buying Singapore Government Bonds, which I will touch on it soon. Make sure your money work hard for you; let the banks feel the margin squeeze.
