You can also enjoy interest every month when you deposit your money in an investment account. Hong Leong Investment Bank has raised the interest rate on its stock trading account again, and now it can enjoy 2.00% p.a. interest.
According to the news issued by Hong Leong Investment Bank, deposits in stock trading accounts will be entitled to 2.00% p.a. interest, effective from November 23, 2022. These interest rates will be calculated on a daily basis and will be remitted to the user’s stock trading account in a lump sum at the end of the month.
This adjustment by Von Roll Investment Bank is in line with the increase in the Overnight Policy Rate (OPR) by the National Bank in early November, when it raised the OPR from 2.50% to 2.75% p.a.
Von Roll Investment Bank raised the rate from 1.10% to 1.30% p.a. in May, 1.30% to 1.50% p.a. in July, and then to 1.75% p.a. in September. If the National Bank raises the interest rate again in January next year, then the Bank will definitely follow suit and raise the interest rate on the stock trading account.
If you are worried that your regular bank account is not safe, you can choose to deposit your money into a stock trading account. However, it takes at least 1 business day to withdraw money from a stock trading account, and you can only transfer money to a bank account in your own name, which is both good and bad. The good thing is that you can avoid theft withdrawals, while the bad thing is that you will not receive the money immediately.
If you are keeping your money in a stock trading account with the goal of earning interest, it is very uneconomical because it is lower than a regular time deposit rate. If you are just waiting for the stock price to drop or for the right time to buy the stock of your choice, it makes sense to keep the money in the investment trading account and earn interest temporarily.
