NTUC Income just launched their latest tranche of Capital Plus yesterday.
Capital Plus CPN16 is a single premium non-participating plan which offers a guaranteed return of 1.6% p.a. for a 2 year term, available for new and exisiting policyholders. This means an initial investment of $10,000 will have a maturity value of $10323.
The minimum investment is $10000 and can only be bought using cash and funds from SRS.
Application will be closed once they have reached $25m or 14 Dec 2009, whichever is earlier. Application is on a first-come-first-serve basis.
For comparison, the current fixed deposit rates are as follows (figures provided by NTUC):
| Bank |
S$ Fixed Deposits, |
||
|
12-Mth |
18-Mth |
24-Mth |
|
| DBS |
0.45% |
0.60% |
0.70% |
| OCBC |
0.55% |
0.60% |
0.70% |
| UOB |
0.45% |
0.60% |
0.70% |
| Citibank |
0.45% |
0.60% |
0.70% |
| HSBC |
0.48% |
NA |
NA |
| Maybank |
0.88% |
1.00% |
1.00% |
| StandChart |
0.35% |
0.72% |
0.76% |
| RHB |
0.75% |
0.88% |
1.13% |
| Average |
0.54% |
0.71% |
0.81% |
The table doesn’t include CIMB which currently offers 1.2% for a 12-month fixed deposit and 1.4% for a 24-month fixed deposit.
10 comments
1 ping
Intheknow says:
December 4, 2009 at 10:54 am (UTC 8)
getting pathetic…
1.6% p.a. for 2 years….
lioninvestor says:
December 4, 2009 at 11:00 am (UTC 8)
Yes…Started at 2% 1 year back but now the rates are low across the board.
Jasmin says:
December 4, 2009 at 11:54 am (UTC 8)
I thought the last tranche was at 1.4%pa!
lioninvestor says:
December 4, 2009 at 1:24 pm (UTC 8)
Yes, this tranche is slightly higher.
Vincent Teo says:
December 4, 2009 at 12:29 pm (UTC 8)
Buy Singapore Govt Bond. At least you can liquidate anytime without penalty.
lioninvestor says:
December 4, 2009 at 1:26 pm (UTC 8)
Hi Vincent,
Actually, when you sell a government bond, it will be at the market price. It can be higher or lower than your initial purchase price.
Vincent Teo says:
December 5, 2009 at 1:29 pm (UTC 8)
Hi Lioninvestor
I do understand the working of govt bond. At least you have a chance to either sell higher and you do not incurr penalty charges. If you try to liquidate your NTUC Capital Plus, it is confirmed 100% you have to face heavy penalties that may eat into your initial capital.
Goh says:
December 10, 2009 at 10:05 am (UTC 8)
How do you buy a government bond? What is the minimum sum?
Singaporean says:
December 19, 2009 at 1:39 am (UTC 8)
If you borrow your own money from your policies you are charged 6% (approx). How many percent is that above what you are paid for putting your money with them at 1.6%? Why is it that one has to pay so much higher interest when taking one’s own money yet the same co-operative that is supposed to be “from the people, for the people” is giving so little when they are borrowing from the people?
Intheknow says:
December 28, 2009 at 8:19 pm (UTC 8)
insurance companies are FOR PROFIT companies.
of course they charge you a lot for loans and pay you peanuts for deposits.
Extension of NTUC Capital Plus says:
December 15, 2009 at 11:27 am (UTC 8)
[...] Income has increased their tranche of Capital Plus (CPN16) and will be extending the offer of this plan till 21st December 2009 (next [...]