10% S$ Time Deposit Account

Sounds too good to be true?

On the Straits Times today, there is a rather eye-catching OCBC advert, and a very eye-catching headline: 'At 10% p.a., today's perfect for starting a S$ Time Deposit.'

That means, S$40,000 could be S$80,000 this time next year.

BUT

Wait. Read the smaller print, and the 'irresistible 10% p.a. interest' is only for the first 10 days. Then, the interest rate changes to 2% p.a. for the next 10 months... Giving an effective rate of 2.26% p.a.

Stupid right?

Like that, can advertise say got irresistible 100% p.a. interest (for one day) and 2% p.a. interest for the next 10 months, oso only 2.26% p.a. effectively lor.