New Citi MaxiGain Savings Account
This new savings account from Citibank is quite interesting. The base interest rate that you get, is tagged to 80% of 1 month SIBOR. Which means, it acts as a good hedge against a potential rising interest rate environment.
For example if 1 month SIBOR were to surge to 2%, you will get a 1.6% base interest rate p.a. Do note that this account is in similar grouping as CIMB starsaver, where you don't need to fulfill any salary crediting or credit card spending. In my view it is more attractive than the starsaver.
The second portion of the interest rate is an initial step up mechanism. The first month of account opening you will have zero counter. Then every month onward you will get 1 counter each month. Each counter gives you 0.1%, cap at 1.2%. Which means once you accumulate 12 counters, your interest will be 1.2% thereafter in perpetuity(Which means total interest will be 1.2% + 80% of 1 month SIBOR= 2%++).
The only catch is that you have to make sure that your saving amount is increasing every month even if its an increment of $1. Many assumes that the interest that you get every month will be counted as an increment, but I called Citi bank to check and they say no. You will need to either do a FAST transfer or credit a small amount to make sure your current month has more money than your previous month.
Do note you have to be 18 years old and above to open and you need to deposit and initial amount of $10,000. From now till 31st Dec 2016 you will receive a $200 reward if you credit new funds of $50k within 1 month of account opening for a 6 months duration. For those who are currently using CIMB Fastsaver/Starsaver, this will be a better alternative for you in my view.
The base rate tagging to SIBOR is really useful. As historically, we have seen 1 month SIBOR rate between near 0% to 7+%. So there is a potential to get really high base interest if 1 month SIBOR rate were to suddenly rise. For the full info you can click here. Do note you can only open this account by going down to a Citi bank branch.