More companies raising funds

Recently, quite a number of companies are trying to secure loan by issuing bonds or notes. Today, Singapore Airlines just announced that it will be raising money through bonds. SIA's $500 million bonds were sold in two tranches - $200 million of seven-year bonds at 3.145 per cent and $300 million of 10-year bonds at 3.75 per cent. The sale is part of its $2 billion multi-currency medium-term note programme launched last month. DBS is also issuing medium term notes under the a US$15b medium term note program.


One of the main reasons is that Fed had indicated that interest rate will rise next spring and companies looking for long term loans want to secure as much money as possible now, when the interest rate are still low or manageable.


This may be good news for retail investors who are looking to diversify their portfolio into bonds holding. Look out for more companies that are looking to raise money through this path. I am sure more will follow in their foot steps.

Benefits of having different types of accounts

Do you find it hard to track where your hard earn money goes to? At the end of every month, do you keep asking yourself why its so hard to save any money for the month? Fear not, you are not alone. This is a very common scenario for a number of working adults. To overcome this problem, financial experts advocate splitting your monthly pay into several accounts once you get hold of the money.

Pay yourself first

The very first account is your "saving" account. Every month after getting your pay, you should immediately take out a portion of it and put into this account. Regardless of how small the amount, "paying yourself" before you spend the rest will allow you to slowly accumulate savings over the long run. Ideally, you should save up to the point where you have 6 months of living expenses. Thereafter, you can consider channelling the excess to the "investment" account.

Invest for the long run

Reader of this blog will know what I am a strong believer of investment. Depending on interest rate of savings account will never be enough to fight inflation in the long run, so its better to invest the excess to enjoy compounding effect. This is especially useful if you are young and can ride out the investment cycles along the way. Therefore, as more money start to fill into your "investment" account, you can slowly opt to invest them. I have also written another article on regular savings plan, where you pay a fix amount every month to invest in a financial product. You can check that out.

Enjoyment fund

After paying yourself and spending for the month, if you have any left over amount for the month, you can then set it aside and transfer to the enjoyment fund. I always think that its best you save up for things that you want, be it the latest gadget or your dream holiday. Its always unwise to take up debt and credit for enjoyment purposes.




After this, the whole cycle will repeat itself in the following month. Therefore, by following this, you will be sure that you will always spend within your means and not overspend.

DBS Multipler Programme has increased the interest rate!

DBS Multiplier programme encourages consumers to perform total banking with DBS. For those who are not familiar with the DBS multiplier Programme, you can check out one of my earlier posting here.

With immediate effect, DBS bank has revised the interest rates of this programme and its to the benefit of the consumers. Below are the new interest rates. 

Total Monthly Cash Flow#	Higher Interest Rate (p.a.)*
S$7,500 to <S$10,000	0.98%
S$10,000 to <S$12,500	1.28%
S$12,500 to <S$15,000	1.48%
S$15,000 to <S$20,000	1.68%
S$20,000 and above	2.08%

When compared to the old interest rates, DBS bank has raised the interest rates of the top 3 tiers. The highest tier now enjoys the interest rate of 2.08% ( up from 1.58%  previously). This certainly makes things even more compiling to consolidate all financial transactions with DBS now.