Friday, May 22, 2015

POSB Invest Saver 4.0: Re-invest Dividends!

Update 26/5/2015: Called up DBS/POSB and spoke to someone there and got verbal confirmation that dividends CANNOT be reinvested. This post is therefore not valid.

Thanks to a reader for commenting and pointing out this new development in the POSB Invest-Saver Product!


This is the screenshot that he sent me of what he saw inside his ibanking page.


Well, now that changes up some things a little, doesn't it?

I have written about the POSB Invest-Saver product a few times:
1. Comparing the RSPs of POSB, Phillip and OCBC
2. POSB's Invest-Saver inclusion of ABF Bond Fund (with sample investment plan)
3. Feedback on POSB's Invest-Saver to include dividend re-investment

Now, with the POSB Invest Saver being able to re-invest dividends, I think that they are the clear winner as the simplest and most useful tool for the average Joe that understands LOOOOONG term investing and wants a super hassle free product.

Personally, I have not used POSB Invest Saver before. Can anyone who is currently in the plan confirm or dispute the information that Fitri shared? Thank you!

What do you think? Would you recommend POSB Invest Saver to family and friends? Yay or nay?

11 comments:

  1. Maybank has also came out with their version of similar Monthly Investment Plan recently, you may want to check it out too ;-)

    Personally find that POSB's full redemption feature is a drawback.

    Cheers!

    ReplyDelete
  2. Richard I looked at the Maybank Zero Commission with Monthly Investment Plan. The 'zero commission' is only valid for a promotional period, do you know what is the normal commission after the promo?

    ReplyDelete
  3. Hi Richard and Anon!

    I have checked out Maybank's Zero Commission MIP as well, 4 things of note:

    1) It is promotional and ends 31st Aug 2015
    2) "Zero commission" because rebates are given
    3) Normal fees are 1% for trades under $1,000 and 0.18% for trades over $1,000
    4) Range of products much more extensive

    I must admit that they are offering quite a compelling competitive product, but most people won't open up an account with Maybank KE just for their MIP. I think that the administration and managing a monthly transfer is too complex for most people.

    POSB/DBS offers this "one-and-done" service pretty well, piggybacking on the fact that almost every Singaporean has a POSB/DBS account.

    ReplyDelete
  4. A few months back i call DBS, they say the reinvest of posb invest saver is invalid so they ask me to ignore the online application, hence i dunno if it has been activated as of now. Interested investors better call POSB again.
    As for the full redemption or partial redemption of posb invest saver, I thought they allow partial redemption now?
    Anyway, better check with DBS/POSB again.

    ReplyDelete
  5. Didnt know maybank has too. They have ES3 (SPDR STI ETF)! But need more details of maybanks plan...
    Got dividend reinvestment?
    Can giro from posb?
    How are shares allocated? Round down and deduct exact amount or like OCBC BCIP no refund?
    How is selling like?
    Commission of 0.18% looks good.
    - momo

    ReplyDelete
    Replies
    1. Sorry missed out few more qns for maybank.
      custody = ?
      Transfer fees?
      Do they have a faq pdf like BCIP?

      Delete
  6. Hi GMGH i selected this option last month but I doubt it's valid though. There was no confirmation and there wasn't mention about the costs as well. I guess its only valid for unit trusts

    ReplyDelete
  7. Hi guys,

    Next week I'll give POSB a call and check up on the dividends re-investment and let y'all know what I find out.

    Momo, check out their page and the FAQ (under monthly investment plan), I think it has some answers for you: http://www.maybank-ke.com.sg/latest-offerings/listing/sgd0-commission-with-monthly-investment-plan/

    I am not sure about this Maybank MIP, but $1,000 a month is too much for me, so it's a bit out of my mind for now, haha

    ReplyDelete
    Replies
    1. This is what i gathered
      - custody is maybank as it is using their prefunded account
      - website suggests can giro
      - commission is 1% for <$1000 min $1, 0.18% for >=$1000 min $18
      - it is not clear if there is dividend handling fee
      - no mention of dividend reinvestment so looks like dont have
      - allocatiom of shares seem to be rounded but no example and detailed explanation
      - selling seems to be through the prefunded account

      Thats it for now. To sum up, the details/faq is lacking, and it is the only other plan other than philips sbp which offers ES3 for now.

      Delete
    2. Ah typo. Commission for 1000 and above is min $10

      Delete
    3. Hi Anon and all,

      Don't forget that there is also the OCBC plan!

      I called up DBS/POSB today and they confirmed that dividends are NOT allowed to be re-invested and that it is a glitch if it is showing.

      Sorry for the false alarm everybody!

      Delete

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