CIMB Bank promo interest rates usually change on a monthly basis and at times most account holders are unable to keep up. The confusing promo interest is one reason why some people tend to shy away from CIMB Bank.
Although it’s mid-April already and kind of late to post it, I’ll be discussing CIMB’s April promo. And I’ll promise that I’ll post their May and succeeding promos as soon as I have the time to do so.
What are the latest promo interest rates for April?
There are 2 promo interest rates that can be applied to your GSave or UpSave accounts:
- Increased base interest from 2.6 or 2.5% p.a. (GSave / Upsave) to 4% p.a.
- 8% Prosperity Promo Deposit
Get 4% p.a. (per annum) for your Average Daily Balance (ADB)
From the base interest rate of 2.6% (for GSave) or 2.5% p.a. (UpSave), you will get 4% p.a. base interest on your total daily average balance up to the first 200K only.
Anything above 200K will get the original 2.6% or 2.5% p.a. base interest.
Example 1
Your ADB for April is 120K. You will then get a 4% p.a. base interest rate for that. If you want the exact value that’s 320 pesos as your interest for the month of April (tax on interest earnings already deducted).
In case you’re wondering, here’s the formula:
- 120K multiplied by 4%
- Then divided by 12 months since the interest rate is per annum
- And multiplied by 80% in order to get the net interest earnings (or without the tax)
Example 2
Let’s say your ADB for the month of April is 220K on a GSave account.
You will get a 4% p.a. base interest rate for 200K and a 2.6% p.a. base interest rate for 20K. That’s Php533.33 for your 200K and Php34.67 for the 20K.
This means the total interest earnings are 568 pesos (tax on interest earnings already deducted).
Formula:
- Follow the same formula above in computing the net earnings for the first 200K
- As for the 20K, it’s similar to the formula above but uses 2.6% instead of 4%.
- Then add the values you get on both.
Earn 8% p.a. on your ADB growth
ADB growth means you have increased your average daily balance from the month before. So the difference between your previous March and April ADBs will get an additional 8% interest rate. Take note this is on top of the 4% p.a. that will be applied to your ADB.
For the examples, we will use the same values as the ones we have above but we’ll add another variable which is your March ADB.
Example 1
Let’s say you have 100K ADB for the previous month.
So that’s a 20K ADB growth.
- First, you will get the 4% p.a. base interest for your 120K. So based on our previous computation, that’s 320 pesos.
- For the 20K ADB growth, follow the same formula above but replace 4% with 8%. That will give you 106.67 pesos.
- So your total earnings for the month of April is 426.67.
Example 2
The previous month’s ADB is 200K, so that’s a 20K ADB growth.
- 4% p.a. base interest for your 200K is Php533.33
- 2.6% p.a. base interest applied to your 20K is Php34.67
- 20K ADB growth is Php106.67
- So your total earnings for the month of April is 674.67
Blogger’s Note
CIMB always provides this kind of promo which aren’t that simple to comprehend for most people. Kaya hindi natitake advantage ng maayos ng karamihan. So gaya ng sabi ko nung una, I’ll make it a point to post pag merong bagong promo si CIMB so you can plan ahead. I’ll do the same for the other high-yield savings accounts that I have. Although I only expect one other bank which is Maya na may ganitong paandar.
If you have questions or if the formula is unclear to you, just drop a comment below.