Who doesn’t love free money? Yes, I am not cheesing you when I say there are free money ups for grabs in Singapore, as long as you have some easily met requirements. OCBC 360 gives us up to 3.05% interest for the first $50,000 you deposit if you meet some easily met requirements. BUT which early 20s or even late 20s have $50K parking in the bank for 3.05%??? Yes most of us dont have that amount but there are ways to get 50K without spending a dime.
Requirements for Free Money
- You must be a working adult earning enough salary to apply for a credit card.
- You pay at least 3 bills in a single month
- Our local banks didnt ban you from borrowing money -> good credit rating.
Steps to having Free Money
1. Open an OCBC 360 Account.
Its the only account in Singapore that can give you up to 3.05% interest for the first 50K of your deposit.
- 1% Credit your salary to OCBC 360
- 1% Pay any 3 bills
- 1% Charge $400 to OCBC Card
2. Credit your Salary with OCBC 360
With your OCBC 360 Account opened, its time to email your HR and get them to credit your salary your new OCBC 360 Account.
3. Start Paying your Bills using OCBC online banking
This shouldnt be too hard, once you are working 3 bills should be easily met. These 3 bills can include credit bills from other banks as well as credit card bills from OCBC bank.
4. Apply for an OCBC Bank credit Card and charge $400 to it monthly
If you haven had an ocbc card, time to get one, depending on your needs, both OCBC Frank and OCBC everyday card are relatively good cards to get you rebates. Tips to spends $400 on credit card
- Telco Bills – $50 ++
- Transport (EZ link) – $ 100
- Insurance (tell your agents to bill you monthly) – $100
- Chiong to pay your staff outing meals with credit card – $150
- $400 aint too hard to reach, i bet most of us spend more than $400 a month on credit cards
5. Borrow Money with low interest from a few banks.
Now here’s the real fun part and the most important one to get your free money. Everyone once in a while, banks will have excess deposits that they need to get rid of – which means they need to get folks like you and me to borrow money at very low interest rates. These interest rates are typically less than 2% per annul to the lowest I have received is about 0.99% per annual. This is perhaps one of the reasons I did not activate DNC (Do not Call) Register – i want the banks to call me up and give me low interest loan. Below is a typical call scenario from XYZ bank
XYZ Banker: Dear Sir, we are offering balance transfer at 5% per annual, no processing fee.
Me: Im not interested in 5% ones, whats is your interest rate per annul for a 6 month balance fund transfer.
XYZ Banker: For 6 months balance fund transfer we are offering at 2% per annual, no processing fee
Me: Really? Did you know ABC bank is offering at only 1.3%? Can you match?
At this point, XYZ banker will probably need to check with his/her boss and will call you back in a day either matching the interest you said or a much lower interest rate that was first offered. Whatever rate they offer, just take it as long as its close or below 2%.
6. Transfer your new funds to OCBC 360.
Suppose you manage to transfer $10,000 to OCBC 360, with an interest rate of 1.5% . In the next 6 months, these 10K will earn you a total interest of $75 [10000/2 *(3.05%-1.5%)] . Here’s the quick break down assuming 1.5% interest rate
- $10K – $75
- $20K – $150
- $30K – $225
- $40K – $300
- $50K – $375
Up to $375 can be earned in 6 months without dropping a single sweat.
7. Remember to pay your bills, and return your loan once the 6 months period is up.
Remember to pay the minimum sum every month, else you be charge with late payment. Put a date on your ical/Google Cal and return the $$$$$ on due date – else you be slapped with 24++% interest.
8. Rinse and Repeat
This is way better than Fixed Deposit and its a guaranteed return without you spending a single dollar. And yes banks will likely call you up and offer you a cheap loan once you repaid the 6 months loans. Lets enjoy while this last.