Banking: income trusts

[cattleherder]

I am currently exploring different options for low to medium-risk investment, and pondering whether it makes sense to move my funds here from the US.

I was initially enthusiastic, having seen a wealth of integrated options in my UOB account that include gold, structured deposits, and more, but the excitement quickly subsided after I started trying these out.

Apparently, these guys have unwritten rules. Like, if you apply online, you are not going to get the same interest rates, and so on. That is in addition to the fact that "up to X%" is a euphemism for "you'll never get it, it's just a joke" .

After I got my fixed deposit (having waited for a week!!!), I was amazed to discover that instead of the advertised %1.15, I will be getting %0.2 (because I applied online) and there is no option to withdraw it online. I went to the branch where it was all explained to me and to the question whether the bank actually wants customers with significant savings, the teller said yes, and produced a bunch of printouts for income trusts. It's a bit like the funds one buys in Vanguard or Charles Schwab but the number is more limited (bummer), and there is more exposure to Asia (yay).

I have two concerns though. First, they charge whopping 3% to buy these funds (but no charges for reinvesting or withdrawing). Second, most of these income trust are relatively new, e.g. from 2016. Which makes me wonder about the long-term viability.

Opinions / experiences?

[PNGMK]

It's extremely hard to find a TD with an attractive rate right now. Singapore is a nation of savers which means the banks are flush with funds.

Maybank are paying 1.2 or 1.3% for SGD and it can be done online - I just did it a day ago. They have higher rates for forex TD and indeed even a decent rate on USD and AUD current accounts (1% on their AUD current account).

I long long ago moved away from the Damn Bloody Stupid and Ugly Overseas Bitches banks. Maybank never have queues and have a personal touch and reasonable rates. SBI also.

Also look into Singapore government bonds (consumers can buy)./ I can't speak to the investment tool you refer to but watch out for the Fin Adviser crowd trying to sell you insurance bonds - a whopping 8% charge on the way in!

[cattleherder]

It's extremely hard to find a TD with an attractive rate right now...

Thanks, PNGMK.

Sounds like there's not a lot to play with, I'll probably just leave the bulk of my money elsewhere...

[PNGMK]

It's extremely hard to find a TD with an attractive rate right now...

Thanks, PNGMK.

Sounds like there's not a lot to play with, I'll probably just leave the bulk of my money elsewhere...

Keep tax rates in mind. I'd keep my money elsewhere too but as my marginal rate here is around ~20% it's far more attractive to keep it here than pay a non resident tax of 45% in Australia for example on TD.

[cattleherder]

Keep tax rates in mind. I'd keep my money elsewhere too but as my marginal rate here is around ~20% it's far more attractive to keep it here than pay a non resident tax of 45% in Australia for example on TD.

Makes sense. But then, Vanguard in the US offers a lot of choice, and I'm not taxed there.

[PNGMK]

Keep tax rates in mind. I'd keep my money elsewhere too but as my marginal rate here is around ~20% it's far more attractive to keep it here than pay a non resident tax of 45% in Australia for example on TD.

Makes sense. But then, Vanguard in the US offers a lot of choice, and I'm not taxed there.

Why bother with Vanguard? Open an account with Saxo here and buy the index / CFD / EFT. No costs at all apart from $10 brokerage.

[cattleherder]

Why bother with Vanguard? Open an account with Saxo here and buy the index / CFD / EFT. No costs at all apart from $10 brokerage.

Sounds nice. Do they have a good choice of mutual funds?

[PNGMK]

Why bother with Vanguard? Open an account with Saxo here and buy the index / CFD / EFT. No costs at all apart from $10 brokerage.

Sounds nice. Do they have a good choice of mutual funds?

Mutual funds are listed by the fund holder - who wants a % on the way in I think.

I prefer ETF / indexes.

Give me some examples of funds and I'll check on the Saxo system.

[cattleherder]

Give me some examples of funds and I'll check on the Saxo system.

Say, Global Wellington Fund?

[PNGMK]

Give me some examples of funds and I'll check on the Saxo system.

Say, Global Wellington Fund?

No - a whole bunch of vanguard funds you can buy as ETF or a CFD but not that one.