Standard Chartered eSaver - Investment made easy

Updated on 8 Feb 08:

The link to Singapore Inflation Index, aka Consumer Price Index, has been updated to http://www.singstat.gov.sg

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Original on 16 Mar 07:

As a citizen, the bare minimum financial knowledge we should know are:

1. Inflation Rate
2. Bank Interest Rate

Money has a time value. The reason for this value is due to inflation rate. Money gets smaller in value as times goes by. 10 years ago, a McDonalds burger meal cost only S$3.50, but now it cost nearly S$6! As at time of this writing, Singapore’s inflation rate now is 1.4%. Check out the latest inflation rate @ http://www.singstat.gov.sg.

Those who do not have knowledge on how investment works or which investment to enter into, the easier investment, which even my grandmother can understand, is what the bank can give you on your deposit in terms of interest rate.

If your think that POSB is short-changing you, you are most probably right. They are offering only 0.25% interests per annum for the deposit amount that most of us have in their bank. Subtract this from the current inflation rate and it is not difficult to realise that your bank deposit is now losing 1.15% worth of value now. I mean NOW.

"How to overcome this as a layman citizen", you may ask. "I am not savvy in investments". Educate yourself. I am not telling you to take up a course about investment right away. I am not telling you to read a lot of books or articles right away. But the bare minimum you can do is, Research.

The very fact that you are reading this shows that there is a very high possibility that you are computer literate and internet friendly. If this is the case search online for the best interest rate that our local banks offer. It's a 10 min task only.

For a start, the simplest investment instrument I can guide you to is Standard Chartered eSaver (www.standardchartered.com.sg). It’s a simple saving account offering 1.8% interest per annum now. I mean NOW. Since it is just a saving account, there is no lock-in period. The beautiful lady at the counter told me that I can start opening one with them with as little as $10.

You may be asking how can this be so good? There must be a catch somewhere. You are right! There is a catch, and the catch is… There is no physical bank statement to be sent to you every month. You don’t have a bank book to update your transaction records. Everything is done online. Yes, everything. That’s why they can cut cost and pump their savings to us in terms of better interest rates.

The very fact that you are reading this email shows that there is a very high possibility that you are computer literate and internet friendly. If this is the case, what are you waiting for? What is stopping you from opening an eSaver account now? Doesn’t it make more sense to you to park your cash in eSaver account with 1.8% interest rate (effective difference of 0.4% to inflation rate) right away?!

To quote Robert T. Kiyosaki, “Investment in your financial education can pay a greater percentage return, even on something as simple as a savings account.”

All you need to do is to invest your time (which is free) to gain education (Knowledge, Skills and Experience). The higher your financial IQ the less money it takes to get rich. It is not difficult to spot opportunities to make more money after that, or at least don't lose money even if your money stands still. So you see, investment is easy, with some education, ya. ;-)

Cheers!

Leroy
"When I Stop Learning, I Stop Living"