Asked on 26 Nov 2019
Trying to maximise the interest on the OCBC account, and fully aware that this action might mean losing out on the step-up bonus or does it not? Transaction date matters?
When you log in to your OCBC internet banking and go to your account details, you'll see a "Average daily balance increase vs. last month". As long as this amount is at least $500, you will get the step up bonus.
So time your transaction from OCBC to CIMB carefully. To be safe, aim to increase your OCBC balance by around $600 a month, as I've found out the hard way that trying to increase it by exactly $500 is almost impossible; the problem lies with the fact that OCBC calculates average daily balance and reports the number to you, I can never find a way to get the number I see. Hence i figured I'll just increase my balance by at least $600 a month to avoid the problem.
Yes, transaction date matters. In order to maximise OC 360, one has to have at least $70K in the account. Perhaps a good way is to do a calculation (via spreadsheet) on the interest earn if a specific amount is deposited in OC 360 (with $70K as base) vs transfer the balance to CIMB.
For OCBC, it requires crediting of salary to attain a higher interest rate. Hence, you will have to make any transfer manually (to CIMB).
Yes, transaction date matters - look at the terms to confirm if the interest is given based on which balance, e.g. daily average balance.
In short, if you want the best yield, you will have to put in some effort to obtain it. Having a calendar or excel sheet will help. =)
Here is everything about me and what I do best.