This is the new online savings bank account that CIMB is currently offering. Basically, it is a simple, no-frills, cash savings account.
- 1% interest on the first $50,000 (SDIC-insured)
- 0.6% interest on balances above $50,000
- No fall-below amount and fee
- Online application (no need to go down to branch or send forms)
They are also having a promo now, which means if you put in the eligible cash amount, you will get the cash credit for keeping the money there for 6 months. This is on top of the 1% rate that you will receive.
For $1,000 put in, you get a 3.02% 6-month fixed deposit.
For $10,000 put in, you get a 2.01% 6-month fixed deposit.
For $25,000 put in, you get a 1.81% 6-month fixed deposit.
Basically, the promotion is pretty sweet. During that 6 months, any extra money deposited under the $50,000 will get 1% interest. And after that 6 months the whole account reverts back to normal and just earns 1% status quo, which is still a very good rate!
Honestly, I am a real fan of CIMB given their StarSaver account (which I recently opened and am currently using as a 2.82% high yield fixed deposit with their promotion) and their step-up fixed deposit products. When it comes to retail products, CIMB is definitely one of the front-runners that know which buttons to press to attract consumers.
However, they seem to have a real problem about cannibalizing their own market share and having products that are just slightly behind the curve for them to be the front runners.
With this FastSaver account, they've just killed off the small savers with bank balances below $50,000, since all the StarSaver account holders will switch. (I will also do so with my earmarked money that can be withdrawn in 2016)
Their step-up fixed deposits was completely destroyed by the Singapore Savings Bond, which is why the 5-year structure is not available anymore, leaving only the 12m and 18m structure.
If you do not qualify to get the high interest rates offered by OCBC or UOB because of all the hoops that you have to jump through and tricks you have to perform, CIMB is really an excellent choice.
CIMB is really a nice, simple, clean, no-frills bank that I really enjoy. Pair it up with one of the simple credit cards with immediate no-frills 0.5% rebate. Now it is no longer an excuse not to save money because there are no products for you. It might not be the best product, but it is definitely better than nothing!
For my secondary cash savings account (after OCBC 360), I am abandoning my StarSaver account and I will open up a FastSaver account (boohoo, no promo for me!)! What about you?