Higher savings rate with Poems MMF

[Disclaimer: The author does not achieve any monetary gains from posting this entry.]

For those who doesn't know what POEMS is, it is a trading account. MMF is a facility to temporarily park money during stock trading. When money is put into POEMS account, it will be automatically bought into MMF at the price stated on that day. When stock trade is done, the MMF unit will be sold at the price stated on that day to pay for the trade.

One and a half month ago, I activated my POEMS MMF (Money Market Fund) account. Since then, I started tracking the MMF price. I have also gotten historical pricing from "Bully The Bear".

Below is the data I have gathered from POEMS as well as "Bully The Bear".

Date	Price	interest rate compared to previous record (%pa)
02/05/2007	1.0908
04/05/2007	1.0909	1.67
08/05/2007	1.0910	0.84
09/05/2007	1.0912	6.69
10/05/2007	1.0913	3.34
14/05/2007	1.0914	0.84
15/05/2007	1.0916	6.69
16/05/2007	1.0917	3.34
17/05/2007	1.0918	3.34
21/05/2007	1.0919	0.84
23/05/2007	1.0921	3.34
24/05/2007	1.0922	3.34
28/05/2007	1.0923	0.84
29/05/2007	1.0925	6.68
01/06/2007	1.0926	1.11
05/06/2007	1.0927	0.84
06/06/2007	1.0930	10.02
08/06/2007	1.0931	1.67
12/06/2007	1.0933	1.67
13/06/2007	1.0934	3.34
18/06/2007	1.0935	0.67
19/06/2007	1.0938	10.01
21/06/2007	1.0939	1.67
25/06/2007	1.0940	0.83
26/06/2007	1.0942	6.67
28/06/2007	1.0943	1.67
29/06/2007	1.0944	3.34
03/07/2007	1.0946	1.67
04/07/2007	1.0947	3.33
06/07/2007	1.0948	1.67
10/07/2007	1.0951	2.50
12/07/2007	1.0952	1.67
13/07/2007	1.0953	3.33
17/07/2007	1.0955	1.67
19/07/2007	1.0956	1.67
20/07/2007	1.0957	3.33
24/07/2007	1.0959	1.67
25/07/2007	1.0960	3.33
27/07/2007	1.0961	1.67
30/07/2007	1.0962	1.11
31/07/2007	1.0963	3.33
01/08/2007	1.0964	3.33
02/08/2007	1.0965	3.33
06/08/2007	1.0967	1.66
07/08/2007	1.0968	3.33
08/08/2007	1.0969	3.33
10/08/2007	1.0970	1.66
13/08/2007	1.0971	1.11
15/08/2007	1.0974	4.99
16/08/2007	1.0975	3.33
20/08/2007	1.0976	0.83
21/08/2007	1.0978	6.65
22/08/2007	1.0979	3.32
24/08/2007	1.0980	1.66
28/08/2007	1.0982	1.66
29/08/2007	1.0983	3.32
30/08/2007	1.0984	3.32
03/09/2007	1.0985	0.83
04/09/2007	1.0987	6.65
07/09/2007	1.0988	1.11
10/09/2007	1.0989	1.11
11/09/2007	1.0991	6.64
13/09/2007	1.0992	1.66
14/09/2007	1.0993	3.32
18/09/2007	1.0995	1.66
20/09/2007	1.0996	1.66
21/09/2007	1.0997	3.32
22/09/2007	1.0999	6.64
26/09/2007	1.1000	0.83
28/09/2007	1.1001	1.66
06/10/2007	1.1005	1.66
12/10/2007	1.1009	2.21
16/10/2007	1.1011	1.66
17/10/2007	1.1012	3.31
19/10/2007	1.1013	1.66
23/10/2007	1.1015	1.66
24/10/2007	1.1016	3.31
26/10/2007	1.1017	1.66
30/10/2007	1.1019	1.66
31/10/2007	1.1020	3.31
02/11/2007	1.1021	1.66
06/11/2007	1.1023	1.66
07/11/2007	1.1024	3.31
13/11/2007	1.1027	1.66
14/11/2007	1.1028	3.31
16/11/2007	1.1029	1.65
19/11/2007	1.1030	1.10
20/11/2007	1.1031	3.31
21/11/2007	1.1032	3.31
22/11/2007	1.1033	3.31
26/11/2007	1.1034	0.83
27/11/2007	1.1036	6.62
29/11/2007	1.1037	1.65
03/12/2007	1.1038	0.83
04/12/2007	1.1039	3.31
05/12/2007	1.1040	3.31
07/12/2007	1.1041	1.65
11/12/2007	1.1042	0.83
12/12/2007	1.1044	6.61
14/12/2007	1.1045	1.65
17/12/2007	1.1046	1.10
20/12/2007	1.1048	2.20
21/12/2007	1.1049	3.30
24/12/2007	1.1050	1.10
26/12/2007	1.1052	3.30
27/12/2007	1.1053	3.30
28/12/2007	1.1054	3.30
02/01/2008	1.1056	1.32
29/02/2008	1.1092	2.05
05/03/2008	1.1094	1.32
08/03/2008	1.1095	1.10
11/03/2008	1.1096	1.10
12/03/2008	1.1097	3.29
14/03/2008	1.1098	1.64
17/03/2008	1.1100	2.19
25/03/2008	1.1101	0.41
26/03/2008	1.1103	6.58
	Average Interest rate (%pa) >>>>	2.70%

If the calculation is based on the first date and the last date, the interest rate is slightly lower.

Date	Price	interest rate (%pa)
02/05/2007	1.0908
26/03/2008	1.1103	1.98

[Note: Hopefully my calculation is correct]

I am fully aware that there are many other "rainy day savings haven"; to name a few would be Citibank Step-Up Account(currently stepping up to 1.2%pa) and StandardChartered eSaver Account. Well, I suppose I prefer POEMS MMF to others because I can gain better access to the money.