Small 'trick' to set-up regular DCA efficiently

tigjun21
2022-04-11

Some of us may be aware that we can arrange Standing Instructions (eg: DBS ibanking) to set-up automatic recurring fixed amount of fund transfers.

Such recurring transfers are useful if you need to give fixed monthly allowance to parents, fund your certain bank accounts for scheduled GIRO deductions, or to fund your robo investments.

However, standing instructions are usually only available on a monthly basis, for example on the 10th of every month (or quarterly basis, annually basis etc).

This means DAILY (or weekly) standing instructions is currently unavailable for most banks, or within robo advisors' platform (eg: using your robo's cash management account to transfer recurring amounts to your portfolios/goals).


[Small 'trick'/solution]

If you intend to fund your robo investment account(or brokerage accounts) very regularly, for example, every EVEN days, then simply set-up MULTIPLE standing instructions:

(1) 2nd of every month

(2) 4th of every month

(3) 6th of every month

(4) 8th of every month

(5) 10th of every month

(6) 12th of every month , & so on...

This can be tedious & time consuming, but it is just a one-time effort to set-up.

Note: For month-end dates, such as 31st, this can be tricky, as the banks/robos may "push" it to the "1st", or may ignore it if there isn't a 31st. So perhaps, avoid month-end dates (even 29th, 30th can be problematic because of February).

@TigerStars

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Comments

  • skythelimit
    2022-04-11
    skythelimit
    Haha! You suggestion is useful. I will put it into practice when I deposit my money into banks next time.
  • moonzo
    2022-04-11
    moonzo
    This is a great feature because it saves a lot of hassle.
  • limnorth
    2022-04-12
    limnorth
    I usually just do monthly or fortnightly DCA.
  • Kyesu
    2022-04-11
    Kyesu
    Read and thanks
  • sunshineboy
    2022-04-11
    sunshineboy
    Yeah! I agree with you. It's reasonable to avoid month-end dates and save you time.
  • cheezzy
    2022-04-11
    cheezzy
    I also have this operation, which is on the 15th of the month.
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