What is the reason that Maybank who used to be always the highest % payout now only offer 1.55% whereas HLB is offering 2.15% ?
Wish to park my entire fortune at HLB now !!!
Or is it too good to be true ? Something gonna happen yo HLB ?
Yes Sir, here's some background information
- it is an old promotion (ending this thursday). When the rates were offered a month ago, the whole market was expecting Yellen to raise rates BUT she didnt on last Wednesday so you feel that 2.15%pa is high
- The actual rate is 1.8%pa for 1year. When you say 2.15%, you are refering to the 2year FD promotion
- Thirdly, the minimum amount is S$50K, not for most small-savers. You need to pay $35 for each deposit that you forfeit before 6-months and risk getting no interests if you forfeit before maturity.
About HL Bank
HL Bank is part of Malaysian (Singapore-born) Quek Leng Chan's business. He has listed companies in Malaysia, Singapore and HK that controls properties, shipping, sugar, palm oil. Go read about his power and business ties in Malaysia and China. On paper, Singapore cousin QLB is richer but actually QLC is a less-leveraged and fundamentally & financially stronger.
Guocoland (another of QLC's business) is developing a super high office+shopping+condo tower in tanjong Pagar. HL Bank Singapore will be moving there when it completed. RUN can only speculate that 1.8 to 2.15%pa is cheap funding for the project. (purely no-basis speculation from RUN)
Lastly, the biggest taker of this 2YR promotion are not small savers. My moles in some local banks told me that June's 2-year Fixed Rates Private Property Home Loans is about 1.68 to 1.88%pa. So many property buyers took more loan and channelled their spare cash to HL Bank to enjoy back-to-back 2.15%pa returns.
Imagine this:
- You enjoy 2.15%pa tax-free for the deposits
- Your 1.68%-1.88%pa home loan interests are tax-deductible for investment properties
Good deal right?
