I’ve been using the various online banking services from DBS, UOB, and Fairpriceplus, supported by OCBC. I always thought that I needed to get the PIN from the bank, so I never used Citibank’s online banking services. However, I wanted to check my account balance and so I found out that it wasn’t that hard I had imagined it to be, and I could have used it long ago. 

The PIN required for Citibank online banking is your ATM PIN. For added security, you will key in your PIN by clicking on the numbers instead of keying in from the keyboard. At the same time, your account numbers will not be seen by any hackers, because most of the numbers are covered up by asterisks ***.  

So far, UOB, Fairepriceplus and Citibank will send a second round of security number to you via SMS. This means you can check your accounts anywhere you want.  UOB is also able to separate joint account holders’ individual accounts, and yet giving access to the account for both holders. I’m not sure about other banks though. 

 Fairpriceplus is an online bank that operates mainly via the Internet. You may access the ATMs from OCBC to deposit or withdraw money, or you can just transfer money from other accounts. Because of this, it is able to give 1% interest on normal saving account. I think this is a great deal compared to what many other banks are offering. At the same time, if you are a frequent NTUC shopper, you get to earn more points when you use the credit or debit facility, as the card has 2 in 1 functions. 

 By moving everything online, we can avoid meeting the pesky bank officers who try to sell us all sorts of structured products, especially when they aren’t making the money themselves, and the products promoted are recommended not based on merit, but based on what the company has for the product of the month. 

 DBS wants to save money on SMS bills, so it has issued a token to its customers. This means you have to carry that small token with you, which is quite inconvenient. At the same time, since many of us are afraid to lose it, we will probably leave it at home, which limits the ease of portability.

One newspaper columnist had already spoken out against this a few months ago, citing it as a reason for him to close the accounts and then move on to other banks which offer more convenient services. I guess banks have to watch out for the bottom line by lowering its operating costs, but at the same time, it should ensure that customers are well served without having much inconvenience. 

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Some extremely risk averse non-investors simply put their money in the bank, earning meagre interest rates, would have lost money even if they did not try other ‘riskier’ instruments. Even the Citibank stepup account that promised up to 2% for deposits if you keep increasing the amount in the bank each month had changed their projects by reducing the percentage by a great deal. So far, only Fairpriceplus.com promised a 1% flat rate as they do not have a retail outlet as the operations are mainly online.

For such risk averse non-investors, they would be better off putting their money into money market funds. Money Market funds simply have economies of scales and they get higher interest rates that only apply to big amounts that the normal savers do not have.

For those who believe in fixed deposits, the amount is still not good enough. Some may try foreign currency deposits, since NZ currency interest rate is quite high, just like the Australian dollar.

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Among the so many varieties of credit cards, one of the most underestimated is the value of a business credit card. Many people do not choose to apply for a business credit card because aside from having a definite target market— the business owners or business executives—it seems to be complicated to use. Although a business credit card has more requirements and has higher interests compared to other types of credit cards there is, contrary to the common conception, it can be very helpful if used properly.

What is a business credit card?
Basically, business credit card is for the business people’s consumption. Compared to the regular credit card, a business credit card has a high limit plus low interest rates. Depending on the manner of choosing, a business credit card may also bring a lot of automatic benefits.

Since it is targeted towards businessmen or those people who are heading towards building a business, a business credit card can definitely benefit these small businesses. A business credit card helps the budding business by extending payments while improving the cash flow. Aside from bearing the image of a dependable credit card, business credit card boasts of having detailed reports and giving quality customer service as its major trademarks.

Aside from having limits and low interest rates, a business credit card provides many alternatives and numerous credit options for small businesses. A business credit card also caters to large corporations that are crafted to aid those people who are starting with their own business to grow while closely monitoring the baseline of credit.

Business Credit Card is definitely worth consideration if you have your own business.

Sarah Tan – Singapore Profit

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*The information here is based on what the websites say as of the published date. Please check with the banks personally if you wish to apply for any of the above services. 

Sarah Tan – SingaporeProfit.com

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They plan to allow up to $500 worth of unsecured credit. It is definitely more convenient to people who needs to use a credit card to pay for something. If such a card existed when I went to Germany for a month-long immersion programme during my university days, I would not be constantly worrying whether my money could last me for the time I was overseas. The fear of not having enough money can be quite paralysing.

During that period, I was not yet 21 years old, and banks were pretty strict on that count and DBS refused to issue a supplementary card to me (actually, they didn’t even reply to seven though I was just 3 months away from turning 21. Only those who were studying overseas for longer period could apply. With this Citibank offering, this group of people need not fret too much.

However, I do have some concerns. The interest rate is 28%, higher than the 24% for normal credit cards. This group is already earning very little, or not. If they get into debt, the interest will snowball quickly.

Citibank said that if the customer does not repay the minimum sum, it will suspend the usage of the card. Hopefully this will be enough. I don’t really like the idea of students being in credit card debt before they start working. If they target the working crowd that does not earn that much, it may not be that bad.

It would be terrible to get a poor credit rating so early in life, especially some students can be really reckless with their spending, and they may not realise the consequence of having a poor credit rating. It could affect their applications for car and housing loans or even credit cards. Prudence is very important.

Sarah Tan – SingaporeProfit.com

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A few years later, as I applied for more credit cards, DBS and Citibank, among other banks offered me the same credit lines, so I just left it there without touching them. I refused to spend beyond my means. It turned out that having such a credit facility was really useful in emergency.

I had opened my shares account with Phillips Securities at http://www.poems.com.sg recently and purchased my first shares a few days ago. It took me some time to learn how to use all the functions and I had a great mentor to guide me.

I didn’t know how to pay for my shares, so I asked my colleague, who was also a great investor, who told me to use EPS, or Electronic Payment System. I still had some problems figuring out how to key in the reference number, and tried numerous times. In the end, I called my broker, who patiently explained to me how to pay. Instead of using Bill Payments, I should click on Investment-EPS.

As a lot of my money was tied up in unit trusts and fixed deposits, and I had some large payments to settle in the month of June, I faced a cash flow problem with the account I had linked to my Phillips trading account. The cheque I was waiting for took some time to come, and I missed the 3pm deadline for banking the cheque. In addition, a cash transfer from another bank required 2 days, and I could not transfer cash to my account in time. However, I had to pay the bill because I had waited too long, for the company could force sell my shares if I did not pay up. I had T+3 days to settle the bill. Hence, I decided to transfer some money from Cashline to my savings account. It was a tough decision because of my prior experience. In addition, I simply hated the idea of paying interest.

Fortunately, the Cashline transfer was automatic with Internet Banking, so I did not have to wait an additional few days to get this done. I paid my bill and solved my immediate problem. However, I still wanted to avoid paying interest. The very next day, I deposited cash into my account, and paid my bill for Cashline immediately. There was a time lag, so I still owed that amount on the screen. Thankfully, when I checked my account today, the credit line was ok, and the best part was I did not have to pay a single cent on interest.

In conclusion, I still stand by what I feel about not using such ready credit lines because of interest and the risk of living beyond my means, but it is a great tool to use in times of emergency. Tools should always be used by us for our good, and we should not be led by the nose by these tools.

Sarah Tan – SingaporeProfit.com

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