09 February 2014
Singapore CDP Dividend Direct Crediting Service
Plan to transfer all STI ETF (ES3) units bought under Phillip SBP so far to CDP for following purposes,
a CDP is safer than Phillip;
b Save cost. CDP has no charge on dividend distribution to unit holders(refer item 8 below) while Phillip charges 1% of dividend amount with minimum charge of S$1 and maximum charge of S$50. Although the transfer will cost S$10.70 per counter(inclusive of GST) applicable to both Phillip and CDP (luckily, I have only one counter, STI ETF, at this moment), the cost savings will be much more than that in the long term. In my case, cost saving will be positive in the first year after transfer.
Below is found from CDP website,
"1.What is DCS?
Direct Crediting Service, or DCS, allows you to credit your Singapore-dollar dividend payments or other cash distributions directly into your designated bank account.
2.Why should I apply for DCS?
You'll enjoy greater convenience as you do not need to wait for your dividend cheques to arrive by mail, and to deposit them at your bank. You also begin to earn interest from the date of payment.
3.How can I apply for DCS?
You can apply DCS through your stockbroking company, or post the duly signed application form to CDP.
4.How will I know if my application has been approved or rejected?
Once your bank has approved your application, we'll notify you by post. Your bank account number will also be reflected in your CDP monthly or year-end statements. We will also inform you by post if your application is rejected.
5.How will I be informed of any dividends paid?
You will receive a Monthly Summary of Payments with details of the payments. This Monthly Summary of Payments will be sent to you whenever there are payments made to you for the month. There will also be a transaction code "CDP" on your bank statement to indicate the amount credited into your bank account.
6.What will happen to my dividends if the payment is not credited into my bank account?
If we are unable to credit the dividend payment into your bank account, we will issue a cheque instead.
7.How do I change the designated bank account?
Please complete the DCS form and mail in to CDP.
8.Are there any charges?
Currently, DCS is a free service extended to our account-holders."
a CDP is safer than Phillip;
b Save cost. CDP has no charge on dividend distribution to unit holders(refer item 8 below) while Phillip charges 1% of dividend amount with minimum charge of S$1 and maximum charge of S$50. Although the transfer will cost S$10.70 per counter(inclusive of GST) applicable to both Phillip and CDP (luckily, I have only one counter, STI ETF, at this moment), the cost savings will be much more than that in the long term. In my case, cost saving will be positive in the first year after transfer.
Below is found from CDP website,
"1.What is DCS?
Direct Crediting Service, or DCS, allows you to credit your Singapore-dollar dividend payments or other cash distributions directly into your designated bank account.
2.Why should I apply for DCS?
You'll enjoy greater convenience as you do not need to wait for your dividend cheques to arrive by mail, and to deposit them at your bank. You also begin to earn interest from the date of payment.
3.How can I apply for DCS?
You can apply DCS through your stockbroking company, or post the duly signed application form to CDP.
4.How will I know if my application has been approved or rejected?
Once your bank has approved your application, we'll notify you by post. Your bank account number will also be reflected in your CDP monthly or year-end statements. We will also inform you by post if your application is rejected.
5.How will I be informed of any dividends paid?
You will receive a Monthly Summary of Payments with details of the payments. This Monthly Summary of Payments will be sent to you whenever there are payments made to you for the month. There will also be a transaction code "CDP" on your bank statement to indicate the amount credited into your bank account.
6.What will happen to my dividends if the payment is not credited into my bank account?
If we are unable to credit the dividend payment into your bank account, we will issue a cheque instead.
7.How do I change the designated bank account?
Please complete the DCS form and mail in to CDP.
8.Are there any charges?
Currently, DCS is a free service extended to our account-holders."
