Income tax payable $1200
Monthly payments: $100
To be eligible for $5 (5%) rebate monthly, you need to maintain $3000+$100(income tax installment) in your SaveUp account.
Unless your income tax payable is $1501 or more, you do not need to maintain more than $3000+income tax installment.
I have to remind readers that a 5% rebate on your income tax is NOT equal to 5% return.
With reference to the above example, by depositing $4200 in the SaveUp account, you will eventually get a $60 rebate one year later. This works out to be roughly 1.4% return. The return will be higher if you maintain the minimum deposit of $3100 monthly. However, the return will not exceed 2%. (60/3000 X 100%)
Take note that you will also be entitled a 0.5% interest on your deposit in the SaveUp account.
Is it worth it?
I believe the 5% rebate is a steal for those who already have an existing GIRO arrangement. You just need to bring your income assessment slip to Maybank and they will help you with the rest.
If you are like me who usually pay your income tax using Diners credit card, it might not worth the trouble, time, paperwork and opportunity cost to get a 1.4% return. I read it as a fixed deposit package instead. I prefer to invest idle cash!
Also, the rebate is a promotion, hence if it ceases next year, I will need to take time off to terminate the account and make new arrangements.
To each his own!
The link is here: