OCBC 360 Account - 3.05%

http://www.ocbc.com.sg/personal-banking/accounts/360-account.html

I have opened this account and did all they need me to do for the past few months to earn the 3.05%. The results were amazing. There were months where I earn $18 interest just for deposits in that month.

To me, it is really a lot considering that I have been researching on how to have risk-free interest and investments and now we have this account to earn so much interest.

Highly recommended. DBS' 2.08% can't beat it.

Purchase of Hyflux 6% CPS 10

Just a quick but important update...

I did not follow my plan which I was thinking about earlier as I have chosen to buy 200 shares before its CD expires (on Friday) at a price of $108.44. I figured it out that it does not really make a difference so I just secure the shares first. It turns out to be a good decision as it did not drop $3 at XD. (It dropped $2.45 only).

With that, the current configuration of my family's cash reserves is complete with the following.

• 200 shares of Hyflux 6% CPS 10 => $1,200 per year 
• 300 shares of DBS Bk 4.7% NCPS 100 => $1,410 per year 
• 6000 shares of CapMallA2.15%140121 => $129 per year
• 6000 shares of CapMallT2%b130225 => $120 per year

Thus, my cash reserve is generating about 4% worth of returns compared to 1% in fixed deposits and 0.05% in savings accounts. Of course, the drawback is that I need to withstand the ups and downs of the market price which I figured out to be less than 3% so it should be great for me.

Purchase of DBS 4.7% NCPS 100

After thinking through where to park my cash reserve, I have decided to place it in preference shares issued by banks. Here are the reasons.

• Genting is one which I am not looking at due to ethical issues.
• I am looking at companies which are strong and stable. Thus I am not looking at Hyflux. Local banks are better.

With that, I have purchased 300 shares of DBS 4.7% NCPS 100 which will give me $1410 worth of interest annually. This is much better than savings account and fixed deposits.

Of course, the problem lies in liquidity which I figured out that if I sell (at a loss) when I need the money, I can get the money within one week which is fine for me.

DBS Bk 4.7% NCPS 100

• Current Price = $106.71
• Interest = $4.70 per share
• Yield = 4.40%
• Credit Rating = A

Investment till Callable Date

• Tenure = 9.0 years
• Total Interest = $42.30 per share
• Capital Loss = $6.71
• Overall Yield = 3.71%
• Interest Rate after Callable Date = 4.70% (Assuming they don't redeem at callable date)

This is another one which I have researched on. The yield does not seem high but it is worthwhile because of the long tenure. Overall yield of 3.71% is also one of the highest we have (third on my list) which makes it worthwhile.

One strategy is to place money in this and withdraw 5 years later. I believe the capital loss won't be as much as the current $6.71 per share because they still have enough time value.

This is one of my consideration to place some of my reserve funds to generate returns which are high enough.