Personal Finance Archives | Page 100 of 147

Download The App That Can Keep All Your Insurance Policies In 1 Place

Insurance is a safeguard against unfortunate and unforeseen events. It is a strategic way to manage various risks. Insurance companies offer individuals or policyholders protection from potential losses in exchange of payments called premiums.

To manage your policy letters better, insurance companies offered their own apps. It sounds like a great idea for people who possess a couple of policies from different insurance companies. However, it is quite a chore for people who hold several policy documents. That is when PolicyPal comes in.

PolicyPal, developed when a startup took part in the Startupbootcamp FinTech Singapore, is a versatile platform that gathers all the policy documents from a wide array of insurers. It provides you with a “digital overview and analysis of your existing policies to identify any protection gap in your insurance portfolio and help you to better understand your coverage.”

Image Credits: facebook.com/hipolicypal

HOW IT STARTED

Ms. Valenzia Yap is the brainchild behind PolicyPal. About two years ago, Valenzia’s mother was diagnosed with a serious illness. Her mother was diagnosed with one of the most notorious illnesses across the globe – CANCER. The unfortunate turn of events did not stop there. She was surprisingly rejected by the insurance company because of several lapses that they were not aware of.

The inconvenience that she went through while sorting out her mother’s policy letters gave her an idea to digitize the collation of the insurance policies and other documents. So, Valenzia collaborated with two programmers named Rick Wong and Jun Wei Ng to create the PolicyPal. Necessity was truly the mother of invention this time around.

ITS CURRENT SITUATION

This impressive app received over a thousand of users since its launch. Majority of these users are either on their late 20s or early 30s. Interestingly, their policies range from 1 to 12. These information simply shows how a significant number of Singaporeans are conscious about their health and safety choices.

THE EASY PROCESS

In simpler terms, PolicyPal follows these steps:

1. Capture an image of your policy’s first page.
2. Taking a snap of the second page is only necessary if you have riders.
3. Wait for the app to process your data. It will analyze the policy number, premiums, coverage, and expiration dates.
4. View your premiums and coverage in a graphical overview or a comprehensive chart.
5. Request for a review.
6. Get a free portfolio review to understand your coverage its gaps.
7. Purchase from the available policies if necessary.

Image Credits: facebook.com/hipolicypal

Eager to get your very own PolicyPal app, visit policypal.co to download it for FREE!

MORE FINTECH APPS

There are other incredible financial technology startups that originated from the Lion City aside from PolicyPal. These startups came up with smartphone apps that make financial services more efficient, convenient, and prompt. They challenge the traditional businesses that are less reliant on the potency of software.

Do yourself a favor and know more about the Call Levels (i.e., providing live updates for traders and investors), the TradeHero (i.e., gamifies trading), and the Dragon Wealth app (i.e., one-stop shop for financial advisors)!

Source: 1 & 2

OCBC 360 Account Offers The Best Fixed Deposit Rates

This is a contribution by Alison, who blogs at www.heartlandboy.com

Readers may be surprised that Heartland Boy is suggesting that an actual banking account, as opposed to some plain-vanilla fixed deposit schemes, offers the best fixed deposit rates in town currently. Ever since DBS launched its DBS Multiplier Programme with headline grabbing interest rates, it has forced its key competitors to react accordingly. As a result, this has spawned a new type of hybrid savings account which typically rewards account holders with significantly higher interest rates than the moribund 0.05%. OCBC has its own OCBC 360 Account while UOB has its UOB One Account. After comparing the various bank offerings, Heartland Boy chose the OCBC 360 Account as he thinks it offers the best fixed deposit rates amongst the local banks.

HOW THE OCBC 360 ACCOUNT WORKS

OCBC rewards account holder bonus interests for completing a myriad of tasks. This is in addition to a base interest of 0.05% per annum. The respective bonus interests applicable to the first $60,000 of the account holder balances are:

1.2% per annum when your credit your salary of at least S$2,000 through GIRO
0.5% per annum when you pay any 3 bills online or though GIRO
0.5% per year when you spend at least S$500 monthly on OCBC Credit Cards
1% per annum when you purchase a new insurance (eg: Policies of at least S$2,000 in annual premium) or investment product (Unit Trusts or Structured Deposits of at least S$40,000) with OCBC

Source: http://www.ocbc.com/personal-banking/accounts/360-account.html

The bonus interest accumulates and pays when you do all of the above of any of the following. As an illustration, if you satisfy only criteria 1 and 2, you would still be eligible for 1.7% bonus interest per annum.

TIPS ON MAXIMISING THE OCBC 360 ACCOUNT

Make sure that the salary credited into your OCBC 360 Account uses a code recognised and approved by OCBC in order to earn the 1.2% bonus interest.

A working adult should easily satisfy the criteria of paying 3 bills online (mobile phone, credit cards, insurance premiums etc). If you do not meet the criteria of paying 3 bills online, offer to help pay some of the household bills, such as broadband or utility charges, online.

Whenever possible, apply for GIRO so that the bill payments are automated. This ensures that you will never forget and are guaranteed to complete that task.

OCBC offers plenty of attractive credit cards, such as the OCBC 365, OCBC FRANK, OCBC Robinsons etc. Choose a credit card that is most compatible to your spending habits. For instance, if you enjoy dining out on weekends, you may apply for the OCBC 365 credit card to earn 6% cashback. If you are an online shopaholic, you can earn 6% rebate on OCBC Frank credit card.
If you are paying bills to an organisation which OCBC Credit Card has a partnership with, you can apply to pay through GIRO for greater bang on your buck. For instance, Heartland Boy’s M1 bills are deducted monthly via GIRO on his OCBC 365 credit card. He gets a 3% cashbackfor setting up a recurring telco bill, as well as becoming closer to achieving the S$500 minimum spending on an OCBC credit card as required by the OCBC 360 Account. That is equivalent to killing 2 birds with 1 stone.

If you are capable of making your own investments, you may consider forgoing the 1% bonus interest applicable for new insurance or investment products. That is because the expenses and fees that these products typically charge may well exceed the incremental 1% bonus interest that you earn.

The bonus interest is calculated based on average daily balance, so you cannot “game” the system by withdrawing money at the beginning of the month and depositing money at the end of the month and still hope to get the full interest over the month.

WHAT HEARTLAND BOY LIKES ABOUT THE OCBC 360 ACCOUNT

Previously, Heartland Boy was using the POSB Savings Account, an account his parents set up for him after he got tired of playing with his piggy bank. This account was paying a miserable 0.05% per annum and yet Heartland Boy continued using it out of habit and convenience. This was despite Heartland Boy knowing that he was actually losing money in real terms as Singapore’s historical average inflation was probably 2% per annum. However, since switching over to OCBC 360 Account, Heartland Boy feels awesome whenever he sees the bonus interest roll into his OCBC 360 Account. It was the same feeling he had when he was a small kid collecting candies after accumulating a series of stamps at the funfair.

There is no lock-in period and you are free to utilize the savings inside the OCBC 360 Account whenever you need to. This is in contrast to the traditional fixed deposit schemes whereby there is a lock-in period.

Informing Heartland Boy’s Human Resources Department to change his salary crediting account was surprisingly straightforward. All it took was an email instruction and he only had to do it once!

If you are unconvinced and still fret over the hassle of changing your monetary habits, Heartland Boy can assure you that once you have done it, it will become habitual eventually and you will thank yourself for having done so!

What Exactly Are Mutual Funds And Unit Trusts?

Before investing your hard-earned money, it is a good idea to educate yourself about the different types of investments. Let us start by defining both Mutual Fund (MF) and Unit Trust (UT).

MUTUAL FUND

MF is an investment that gathers the investors’ money into a pool to make multiple types of investments known as the portfolio. The compensation of the investment managers rely on how well the fund performs. Thus, you can rest assured that they will work hard to make sure the fund grows well.

Derived by accumulating the status of the underlying investments, the performance of the mutual funds are typically tracked as the change in the total market cap of the fund.

Players

There are two important entities when taking on the Mutual Fund. I am pertaining to the professional investment manager and the shareholder. Professional invest managers operate the MF by investing the capital and attempting to produce gains for its shareholders. Therefore, each shareholder participates proportionally in the gain or loss of the fund.

Process

As an example, let us consider Canada’s stock market. Gabby wants to try his luck at the Canadian equity market by investing in the S&P/TSX Composite Index. It consists largely of the energy, materials, and financial sectors with different percentages allocated. Performance of the MF is tracked as the percentage of change to its overall adjusted market cap.

UNIT TRUST

UT is distinguished from the MF as it follows a trust structure. Rather than putting the gains back into the fund, it provides profits straight to the individual. This investment scheme is available in Australia, South Africa, Namibia, Kenya, Fiji, Ireland, New Zealand, Malaysia, and Singapore. Both the local and foreign funds are regulated as collective investment schemes in our country.

It works by pooling money from multiple investors to invest in a portfolio assets in lined with the stated investment approach and objective.

Players

There are several important entities when taking on the Unit Trust. Professional investment managers or fund managers operate trusts for gains. The trusts as well as its rights are owned by the unit holders. The unit holders and the fund managers are mediated by the registrars.

Process

The process that the UT goes through depends on the goals and objectives of the investment. The value of the assets in its portfolio is equates to the amount of units issued multiplied by the price per unit. Afterwards, you must subtract other costs such as management and transaction fees.

Image Credits: pixabay.com

COMPARISON

Both the MF and UT gathers the investors’ money into a pool to make portfolios, which are managed by the professional investment manager. The major difference between these two investment schemes is in its structures. Basically, Mutual Fund issues redeemable shares while Unit Trust issues units. It is up to you to find an investment scheme that suits your lifestyle.

Sources: 1, 2, 3, 4 & 5

6 Things You Can Learn About Money From Professor X-Perience

“Who is Professor X-Perience?”, you may ask. It is a persona that I created to embody our experiences.

Our experiences consist of the overall process of sensing and doing things. As far as I know, not everything can be learned from the pages of the book! Exploring the world with your own eyes gives you the most valuable lessons about money.

On that note, here are some of the financial realizations that came from my experiences:

1. GIVE AND YOU SHALL RECEIVE

Whether you want to admit it or not, it is rare that we receive something without doing anything. This statement does not only pertain to finances as it can be applied to other areas in life like opportunities and friendships. If you want to increase the perceived value of what you receive, you must give it out first.

Why is this so? I realized that you reap what you sow. Almost everything that happened to me was a result of my actions. I was able to enjoy an overseas trip because I worked for extra hours and saved up for it.

Image Credits: pixabay.com

2. EARN YOUR MONEY HARD

Since you worked hard for your money, you must spend it wisely.

I never saw the true value of money until I had my first full-time job. When I was younger, I spent my part-time pay on shoes, clothes, tickets, and other materialistic things. The feeling of satisfaction was short-lived as these things are superficial. Nowadays, I spend my money on long-term investments.

Being independent with my finances made me realize how important it is to practice budgeting and tracking your expenses.

3. DO PRIOR RESEARCH

Days before a job interview, I make it a point to do prior research regarding the company and the position that I am applying for. Make your way into the basics such as the company’s mission and vision as well as the position’s duties and objectives. Then, dig deep into the issue that is rarely spoken in our Asian culture – the salary. Be prepared to provide a salary range.

Spend a substantial amount of time in finding out the average salaries for similar jobs in your particular field. Websites such as salary.sg, hudson.sg, and payscale.com are helpful for this task.

4. EXPLORE DIFFERENT JOBS

Some people are so creative that they cannot be confined in a cubicle. If you are one of them, do not limit yourself to the 9-5 PM office jobs. Learn to explore other opportunities such as working online.

Saying that Internet changed our generation is an understatement. Personally, it influences my bread and butter. I am freelance writer that is able to choose from a variety of markets. And, you can too.

You can write for online or print media that go beyond magazines and newspapers. Setting up your own website or blog is also doable. Furthermore, book publishers are always searching for the next big thing. They are in need of people to write their marketing letters, announcements, e-books, and more. An ambitious scribe may dive in to freelancing and get its profits. Note that training, skill, and experience affects your rates.

5. REWARD YOURSELF RESPONSIBLY

According to studies by Behavioral Psychologists, positive reinforcements motivate people to work more. I support these studies as I savor rewards after a long month of work.

Rewarding yourself with a responsible amount of 5-8% of your monthly salary is recommended. Find interests outside of your job such as painting, dancing, yoga, or cooking to ease your daily stress. Also, rewarding yourself with a hobby is a good way to keep you motivated.

6. KEEP YOUR COOL

When faced with embarrassing money-related situations, it is best to keep your cool.

I was working as an administrative officer at a fitness studio a few years back. A rising Hollywood celebrity came to pay but her credit cards got declined. She was furious at me and gave her debit card instead. Thankfully, the transaction was successful.

You can handle this situation better by being calm. Talk to the personnel privately and arrange an alternative form of payment. Consider going to the nearest ATM to withdraw some cash.

Image Credits: pixabay.com

Comment down below to share your own experiences with money.

Don’t Lose Your Fortune On These 4 Techniques That Fraud Artists Use

FRAUDS
SCAMMERS
PHONIES
CON ARTISTS
IMPERSONATORS

All these people share one mission: to use different techniques in order to acquire your hard-earned money. Here are some of the methods that you must watch out for:

1. FAKE CHECKS

Fraud artists employ diverse types of scams in order to get substantial amount of money or to get what they want. One of the most common type of scams is the “fake cheque or check”. Fake check occurs when the artist curates counterfeit checks that seem legitimate. From watermarks to routing numbers, these comprehensive checks can fool the novice eye easily!

Artists use these checks to deposit money to their temporary bank accounts or to pay for a company’s products or services. This is why you must be vigilant when accepting checks. The first step to ensure that the bank or the institution that issued the checks really exists.

Prevention: You do not want to fall prey to checks that are not genuinely from DBS. Is that watermark really pertain to the Development Bank of Singapore or is it from the institution called Doing Bountiful Scams?

2. FAKE BANK EMAILS

Transacting or sending funds online can be convenient but, it can make you vulnerable. I am not completely discouraging online funds transfer or remittance services. Singapore is the most secure Asian country for data privacy after all. According to a recent survey by Artmotion, our nation received a relatively low risk score of 1.9%. It was even ahead of other powerful nations such as USA and UK.

What I am telling you is that providing information for your online activities can put your identity and your wealth at risk.

Prevention: Avoid this by being cautious at all times. For instance, no financial institution will ask for your sensitive information directly thru email. Providing information for your online activities can put your identity and your wealth at risk. To avoid this, you must be informed and cautious at all times.

3. FAKE CUSTOMER SERVICE NUMBERS

Whenever I am in urgent need of professional help at home (e.g., plumber, technician, or locksmith), I immediately search for the service numbers online. You cannot blame me! This is the most convenient and quickest method that most people utilize. Scammers noticed this trend and created a scam called the “fake customer service numbers”.

Believe it or not, some people can receive messages online without a handphone or fake the contact numbers itself. Fraud artists purchase contact numbers that are similar or close to the authentic customer service numbers used by several financial institutions.

They buy the advertisement slots on the top of the search engines in order for the fake number to appear first. It is a such a clever tactic, to say the least. Clients who are in a rush can get trapped by these familiar looking numbers. Imagine the impact if these clients divulge sensitive information such as their credit card details!

Prevention: Proceed to the official website and use the customer service hotlines that are displayed there. Or, you may use the numbers written at the back of your credit card.

4. FAKE APP UPDATES

What do Instagram, Messenger, WhatsApp, and Snapchat have in common? They are quite addicting and most Singaporeans are hooked the moment that they were released. So when a new update such as Instagram stories comes along, people are quick to tap the necessary buttons.

Fraud artists can send blast emails that target the said app’s users. Enclosed in this email is a link or a button that directs the users to the pseudo update. Everything looks legitimate in its face value. However, the redirection includes a malware attack to your system. The malware that you downloaded may copy your all your passwords and personal details including your bank accounts. The attack is vicious and fast-acting!

Prevention: Developers seldom send you updates thru email. Updates are usually prompted in the application store or in the app itself. When you receive spams like the ones mentioned above, please confirm with the official customer service hotline first.

Image Credits: pixabay.com

Next time you encounter tricky circumstances, it is up to you to outsmart the fraud artists!

Sources: 1, 2, & 3

HOW THE OCBC 360 ACCOUNT WORKS

TIPS ON MAXIMISING THE OCBC 360 ACCOUNT

WHAT HEARTLAND BOY LIKES ABOUT THE OCBC 360 ACCOUNT

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