Martin Lee @ Sg
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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.

Leave a Comment:

17 comments
Depp says 14 years ago

Hi Lion ,

how do you view the asian currency ?

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

Reply
Intheknow says 14 years ago

2.75% p.a. for a 5 year investment is pathetic… sorry to say.

Reply
    lioninvestor says 14 years ago

    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.

    Reply
      chee says 14 years ago

      Hi Lion ,

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

      thanks & rgds

      Chee

      Reply
        chee says 14 years ago

        Hi Lion ,

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

        thks & rgds

        Chee

        Reply
          lioninvestor says 14 years ago

          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.

          Reply
          chee says 14 years ago

          Hi Lion ,

          Thanks.

          rgds

          Chee

          Reply
Depp says 14 years ago

Hi
,

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. !

Reply
blur says 14 years ago

Does anyone know what is the best FD or savings rates offered currently ?

Reply
Jasmin says 14 years ago

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.

Reply
CC Lim says 14 years ago

Hi
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?

Reply
blur says 14 years ago

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

Reply
    lioninvestor says 14 years ago

    Hi Blur,

    the interest on the HSBC plan is given as the annualised yield in my post above.

    Reply
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