HSBC Guaranteed Saver Plus Premium Discount

HSBC is currently having a promotion on their existing Guaranteed Saver Plus plan which is a fixed 5 year term single premium non-participating endowment plan.

With the premium discount campaign, the annualised yield could go up to as high as 2.75%. The yield is guaranteed and not a projection.

The discount for various investment amounts is as follows:

20k-49,999 : No discount

50k-74,999: 1.2% discount

75k-97,999: 2.4% discount

>=98k: 1.2% discount

How the discount works is that you only have to put in the premium net of discount. For eg, if you are investing $100k, you will need to fork out $98.8k.

Applying the discount, the annualised yield works out to be:

20k-49,999 : 2.25% p.a.

50k-74,999: 2.5% p.a.

75k-97,999: 2.75% p.a

>=98k: 2.75% p.a.

If you are confused by the discount, you can read an explanation here:

What I Meant by Annualised Yield

This premium discount campaign is only effective from 1st June 09 to 30th June 09.

There is no medical underwriting required for this plan and is available on a first-come-first-served basis.


  1. blur says

    Do you know what is the interest on the endowment plan ? FD interests are very low now and endowments do seem more attractive .

  2. CC Lim says

    Thanks for the notice.
    Just to clarify – do you mean we actually received the interest in advance in the form of discount. At the end of the 5-yr, we will only receive the net amount, eg if one invest $75,000, the discount will be $75k x 2.75% =$2062.50. Net amount = $72,937.50. But is the interest – $2062.50 paid annually?

  3. Jasmin says

    Hi CC Lim,
    I have a feeling otherwise.

    If one invests 100k (as mentioned), he pays a discount ie not 100k but 98.8k. Upon maturity, he receives 100k. That difference would give you 2.75%pa.

    Two things to note:
    (1) Higher amt (98k) does not translate to greater discount. The 75k-97999 enjoys a 2.4% discount.
    (2) Would the bank or insurer goes belly up during the holding period? When that happens, our $$ will be gone!

    We will wait for lioninvestor to comment.

  4. Depp says


    Dont bother to look at it !

    Try foreign banks. u ll be surprised on how can foreign bank can do it !

    and the min. requirement. !

    • says

      Hi Intheknow,

      Yes, there are higher yielding instruments around and this product might not be the best option for everyone.

      Different strokes for different folks.

      5-year SGS bonds is currently giving yield to maturity of 1.29% p.a.

      • chee says

        Hi Lion ,

        Is this product does not fall under the Singapore Deposit Insurance Act ?

        thanks & rgds


        • chee says

          Hi Lion ,

          Is this product fall under the Singapore Deposit Insurance Act ?
          Please advise.

          thks & rgds


          • says

            Hi Chee,

            This is not a deposit and as such does not fall under the Singapore Deposit Insurance Act.

            However, for insurance products – the Insurance Act provides for the setting up of a Policy Owner’s Protection Fund (”PPF”) to compensate policy owners. Under the current provisions, the PPF will cover up to 90% of an insurer’s liability on any life policy.

  5. Depp says

    Hi Lion ,

    how do you view the asian currency ?

    Will SG and RMB contiune to rise against the region asean?


  1. […] compete against similar plans that have been recently launched in the market. One of them is the  HSBC Guaranteed Saver Plus which gives a yield of 2.25% to 2.75% (depending on amount invested). I suppose those who like […]

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