Thursday 27 August 2020

Addition to My Safe Stream of Passive Income

All along, my POSB savings account has been a low interest bearing account. Just maintaining it for the sake of nostalgia and some Giro arrangements like monthly insurance and charity contributions.
However recently I discovered the POSB Cashback Bonus which turned out to be a great addition to my passive income from interest / cash back from my bank accounts.
I know I have been slow to this but it's better late than never.
And I don't even need to sign up for a separate account for this. All I need to do is to log in to my iBanking and enroll my existing POSB account into this Cashback Bonus scheme.
Less than 5 min job.
Why do I say this is a great addition to my passive income from bank accounts?
That's because:

Yes, a whooping 3% cashback on my monthly home loan instalment with the bank.
This rate by itself already beats most, if not all the other cashback / high interest savings accounts out there.
Do note that you have to meet at least 3 of the criteria in order to qualify for the cashback.
Obviously the caveat here is that this scheme will benefit more for those who has home loan, insurance and / or investments with the bank.
Also, if you are maintaining a high average balance in your POSB or DBS account, the DBS Multiplier might be a better choice for you.
The difference between the POSB Cashback and DBS Multiplier account is that the former doesn't care how much is in your savings account as the cashback depends solely on you meeting the minimum 3 criteria while the latter gives interest based on the amount in your account balance.
I've done a quick calculation. With this addition of cashback, I am looking at a monthly inflow of $70+ conservatively speaking, just by doing what I have been doing all this while without the need to change my lifestyle.
$70+ per month or $800+ yearly. While this might not be a lot of money to some, it's good enough for a short trip to Bangkok (almost a yearly trip for us previously) or cover some milk powder expense. Haha..
In short,
The POSB Cashback Bonus scheme will benefit those who has a home loan, insurance and / or investments with the bank yet at the same time does not maintain a high account balance. 
So this is the latest tweak to my safe stream of monthly passive income, at least until the banks change their interest / cashback criteria again.
By the way this is not a sponsored post. Just a sharing of another great way to earn more passive income for people who can benefit from it.

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