Cash strategy

Rather than placing excess funds in Low interest account, it pays to make effort to pursue an active/passive cash strategy.

Active strategy entails taking advantage of fresh fund promotion by rotating between banks for different period (2-3 months). Usual fresh fund promotion banks include Standard Chartered, Maybank, HSBC as well as UOB etc. Reading T&C is important as missing out on critical pre-condition may disqualify the deposit as fresh funds.

Other active strategy include step up features (includes salary crediting, GIROs, card spendings) to build stickiness. DBS, UOB, Ocbc, HSBC all have such features.

Passive strategy will include FD placement (searching for best rates) or placement in no-frills but higher interest account (CIMB).

Cash strategy should be used to complement Investment strategy, I.e. by allowing us to earn higher interest income while awaiting investment opportunities at attractive valuation.

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