I used to convert my Singapore dollars into foreign currency with my bank. I learned recently that the spread (i.e. difference between the buy and sell rate) is about 1.3% compared to 0.3% charged by an online stockbroker. The difference of 1% is for a two way trade. For one way, the difference is 0.5%.
If the amount is $100,000, the difference in charges of 0.5% is $500. I have to pay a TT fee of $10, so I can save $490 by going through the online stockbroker. I hope that my bank can give a better currency rate, so that I do not need to go through another source (which is quite troublesome).
Tuesday, June 3, 2008
Renewal of Motor Insurance
A few people found their motor insurance premium increased by 20% or more, on the renewal of the insurance this year. They did not make any claim during the past year. The increase was due to the escalating claim cost faced by the industry and the poor management of these claims.
They asked my advice on how to get a lower premium rate. I asked them to get a quote from the hotlines of the insurance companies shown in this FAQ:
http://www.tankinlian.com/faq/motord.html
A few consumers have found that India International (Tel: 6347 6100 Fax: 6225 7743) to offer the most attractive quote.
A few months ago, I visited their office to renew the motor insurance for my wife's car. I found their service to be satisfactory. The office environment is friendly. I asked about their claim procedure and was satisfied with it. The premium rate is almost 20% lower than the rate quoted by my existing insurer.
If you like to try, you can send a fax to India International for a quote. If the quote is competitive, you can visit their office and talk to the employee, before you decide to make a switch. You can send your feedback to me.
They asked my advice on how to get a lower premium rate. I asked them to get a quote from the hotlines of the insurance companies shown in this FAQ:
http://www.tankinlian.com/faq/motord.html
A few consumers have found that India International (Tel: 6347 6100 Fax: 6225 7743) to offer the most attractive quote.
A few months ago, I visited their office to renew the motor insurance for my wife's car. I found their service to be satisfactory. The office environment is friendly. I asked about their claim procedure and was satisfied with it. The premium rate is almost 20% lower than the rate quoted by my existing insurer.
If you like to try, you can send a fax to India International for a quote. If the quote is competitive, you can visit their office and talk to the employee, before you decide to make a switch. You can send your feedback to me.
Foreign currency conversion rate
Are you getting a good conversion rate when you buy and sell foreign currency, such as Australian dollar or British pound?
Look at the buy and sell rate. The difference is called the spread. This is the charge imposed by the bank to cover their expenses and profit. It is the cost incurred by the customer to convert from Signapore dollar into the foreign currency and to convert it back at a later date.
If the spread is less than 0.5%, it is a good rate. If it is more than 1%, it is too expensive.
I found the spread charged by a local bank to be as follows:
TT - telegraphic transfer
OD - on demand, i.e. currency notes
The spread is slightly lower for sums above $50,000
LOWER SPREAD AT POEMS.COM.SG
I found the spread on foreign currency at POEMS (Philips Securities) to be 0.3%. In the future, I will convert my money at POEMS and ask them to transfer it to a bank to place on fixed deposit.
Look at the buy and sell rate. The difference is called the spread. This is the charge imposed by the bank to cover their expenses and profit. It is the cost incurred by the customer to convert from Signapore dollar into the foreign currency and to convert it back at a later date.
If the spread is less than 0.5%, it is a good rate. If it is more than 1%, it is too expensive.
I found the spread charged by a local bank to be as follows:
TT OD
USD 1.1% 1.6%
Euro 1.1% 1.3%
GBP 1.3% 1.7%
AUD 1.6% 2.1%
NZD 1.7% 2.2%
Other 2.6% 3.4%
TT - telegraphic transfer
OD - on demand, i.e. currency notes
The spread is slightly lower for sums above $50,000
LOWER SPREAD AT POEMS.COM.SG
I found the spread on foreign currency at POEMS (Philips Securities) to be 0.3%. In the future, I will convert my money at POEMS and ask them to transfer it to a bank to place on fixed deposit.
Debt Trap
Dear Mr. Tan
I am in debt and would like to seek your advice on how to manage my financial problem. I was badly hit during 1997 (CLOB shares). I am still unable to get out of my debt trap.
REPLY
Please try this organisation - Credit Counselling Singapore:
http://www.ccs.org.sg/
I am in debt and would like to seek your advice on how to manage my financial problem. I was badly hit during 1997 (CLOB shares). I am still unable to get out of my debt trap.
REPLY
Please try this organisation - Credit Counselling Singapore:
http://www.ccs.org.sg/
Investing a Lump Sum
Dear Mr. Tan,
I have some 600k that is liquid yielding very low return. Can you advise what I can do? Many investment banker illustrate how regular saving plans can yield BIG if we have TIME and CASH to invest (both I have). My experience is the variable - which instrument can consistently hit the projected return? What do you say?
REPLY
I hope that you find these FAQs to be useful:
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/age60.html
I have some 600k that is liquid yielding very low return. Can you advise what I can do? Many investment banker illustrate how regular saving plans can yield BIG if we have TIME and CASH to invest (both I have). My experience is the variable - which instrument can consistently hit the projected return? What do you say?
REPLY
I hope that you find these FAQs to be useful:
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/age60.html
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