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[NEWS] DBS and POSB cut savings - 0.125%
BAD news for the legions of savers already being squeezed by the meagre interest paid out on their deposits. Today, interest rates on the millions of savings accounts at both DBS Bank and POSB will be trimmed to levels not seen since 2005.
WHAT THEY WILL PAY
0.125% FOR the first $50,000 for POSB savings and passbook account holders
0.1% for the first $50,000 for DBS Savings Plus account holders
... more
POSB savings and passbook account holders, who previously got 0.25 per cent for the first $50,000, will now get just 0.125 per cent. For those holding a deposit of $10,000, the decrease works out to $12.50 less a year.
Prior to Wednesday, DBS Savings Plus account holders got between 0.125 per cent for the first $3,000 and 0.175 per cent for the next $47,000. But now they will get only 0.1 per cent for the first $50,000.
From 2003 to 2005, DBS and POSB savings account-holders received about 0.125 per cent for the first $50,000. Those rates were later revised upwards.
A DBS spokesman said that the interest rates on deposit accounts, such as DBS Autosave, DBS Savings Plus, POSB Passbook and MySavings Account, will be adjusted from Wednesday. 'In line with market practice, we are informing our customers via notices at the branches, on ATM receipts and statements and on our website,' he added.
DBS and POSB are not the only ones reducing their rates to near zero. Over the last few months, many other banks - both foreign and local - have cut their payouts, some in lockstep, some one after another.
United Overseas Bank pays 0.125 per cent for the first $15,000 in savings, while OCBC Bank offers 0.125 per cent for the first $10,000. These rates were adjusted in early April, following a rate adjustment by DBS, a banker said.
The foreign players are also currently paying very little. Standard Chartered Bank's passbook savings account gives savers 0.125 per cent for an amount between $1,000 and $2,500.
Deposit rates are falling along with the rate that banks pay one another to borrow cash - the Singapore Interbank Offered Rate (Sibor). Sibor is a key influence on the rate that banks pay depositors and is hovering at 0.68 per cent, near the all-time low of 0.56 per cent in June 2003.
Another factor causing the low rates is that most Singapore banks do not need to attract deposits given that they are not looking to significantly expand their loan books during the downturn.
Please read the full story in Wednesday's edition of The Straits Times
gabrielc@sph.com.sg
http://www.straitstimes.com/Breaking...ry_397549.html
WHAT THEY WILL PAY
0.125% FOR the first $50,000 for POSB savings and passbook account holders
0.1% for the first $50,000 for DBS Savings Plus account holders
... more
POSB savings and passbook account holders, who previously got 0.25 per cent for the first $50,000, will now get just 0.125 per cent. For those holding a deposit of $10,000, the decrease works out to $12.50 less a year.
Prior to Wednesday, DBS Savings Plus account holders got between 0.125 per cent for the first $3,000 and 0.175 per cent for the next $47,000. But now they will get only 0.1 per cent for the first $50,000.
From 2003 to 2005, DBS and POSB savings account-holders received about 0.125 per cent for the first $50,000. Those rates were later revised upwards.
A DBS spokesman said that the interest rates on deposit accounts, such as DBS Autosave, DBS Savings Plus, POSB Passbook and MySavings Account, will be adjusted from Wednesday. 'In line with market practice, we are informing our customers via notices at the branches, on ATM receipts and statements and on our website,' he added.
DBS and POSB are not the only ones reducing their rates to near zero. Over the last few months, many other banks - both foreign and local - have cut their payouts, some in lockstep, some one after another.
United Overseas Bank pays 0.125 per cent for the first $15,000 in savings, while OCBC Bank offers 0.125 per cent for the first $10,000. These rates were adjusted in early April, following a rate adjustment by DBS, a banker said.
The foreign players are also currently paying very little. Standard Chartered Bank's passbook savings account gives savers 0.125 per cent for an amount between $1,000 and $2,500.
Deposit rates are falling along with the rate that banks pay one another to borrow cash - the Singapore Interbank Offered Rate (Sibor). Sibor is a key influence on the rate that banks pay depositors and is hovering at 0.68 per cent, near the all-time low of 0.56 per cent in June 2003.
Another factor causing the low rates is that most Singapore banks do not need to attract deposits given that they are not looking to significantly expand their loan books during the downturn.
Please read the full story in Wednesday's edition of The Straits Times
gabrielc@sph.com.sg
http://www.straitstimes.com/Breaking...ry_397549.html
, money in = money out
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