Asked on 04 Apr 2020
About to come into a windfall, need a place to store the money before utilising it better. Considering the constraints of SDIC and limitations of high-yield savings accounts, where do high net worth individuals normally store their cash?
As mentioned, a fixed deposit could be a great idea. Citibank is offering up to 4% p.a. on a 3-month SGD Time Deposit for placements from S$500k–S$2 million. The 'catch' is that you'd also need to invest an additional S$50k with Citi. However, 4% is incredibly high–especially in the current market–and beats out the rate you'd get with even the most competitive savings accounts. Since the tenor is just 3 months, you also won't need to make a long-term commitment (like with most other fixed deposits, at least if you want a competitive rate). Check before applying, though, because this promotion is about to end and it's uncertain whether or not Citi will extend it.
If you're interested in learning more about fixed deposits, I have a page covering all of the recent promos (after all, FDs are ALL about the promotional rates). Here's the link: https://www.valuechampion.sg/bank-accounts/best-fixed-deposit-interest-rates-promotions
Some do buy traded life policies and other alternative investments.
However, all face the same constraint (PPF of up to $100k cash value per insurer) or SDIC ($75k of bank deposits).
OR even SSB if you want (if SG government fail, bank likely fail, and other financial institutions would likely fail too).
Hey Anon, I'm aware of an ongoing promotion for Mar-Apr. However I am not sure if they will change the rates, but you may want to check it out. Also was notified that their branches will be closed from 9th onwards for the circuit breaker. https://www.maybankprivatewealth.com/sg/en/solutions/prestige-savings-account.html
If for very short term, multiple Fixed Deposits split with different banks or Money Market Funds.
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