It seems that rates are only heading downward, so make hay while the sun shines for another two weeks or so.
Just like Chocolate Finance says, “falling interest rates affect everyone. Even us.”
Is Chocolate Finance still a competitive option, given the upcoming change in returns?
Table of ContentsFed Cuts Rate In September 2024
After an extremely prolonged period (March 2022 to Sep 2024) during which interest rates rose from [0.00% to 0.25%] to [5.25% to 5.50%] and competed for funds with yield-producing assets, the long-awaited pivot is finally here.
In the September 2024 Fed meeting, the Fed cut rates by half a point (0.5%) to bring the Federal Funds Rate down to the [4.75% to 5.00%] range.
FOMC Meeting DateRate Change (bps)Federal Funds RateSep 17, 2024-504.75% to 5.00%Sep 20, 2023 to Jul 30, 2024—5.25% to 5.50%Jul 26, 2023+255.25% to 5.50%June 14, 2023—5.00% to 5.25%May 3, 2023+255.00% to 5.25%March 22, 2023+254.75% to 5.00%Feb 1, 2023+254.50% to 4.75%Dec 14, 2022+504.25% to 4.50%Nov 2, 2022+753.75% to 4.00%Sept 21, 2022+753.00% to 3.25%July 27, 2022+752.25% to 2.50%June 16, 2022+751.50% to 1.75%May 5, 2022+500.75% to 1.00%March 17, 2022+250.25% to 0.50%Prior—0.00% to 0.25%
For savers who have been enjoying excellent returns from savings accounts for doing absolutely nothing, the good times may be coming to an end.
More rate cuts are definitely coming.
Current Vs. Previous Returns
The Chocolate Finance Top-Up Programme, which ensures our first $20,000 will continue to earn 4.2%, will last until 31 October 2024.
Starting 1 November 2024, Chocolate Finance will offer only 3.6% on our first $20,000.
How Long Will The Chocolate Top-Up Programme Last?
Another change is that the Chocolate Top-Up Programme will be extended to cover balances between S$20k and S$50k.
Take note that the qualifying period for the Chocolate Top-Up Programme has been extended