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17 comments
Hi Lion ,
how do you view the asian currency ?
Will SG and RMB contiune to rise against the region asean?
ReplyHi 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.
ReplyHi Lion ,
Is this product does not fall under the Singapore Deposit Insurance Act ?
thanks & rgds
Chee
ReplyHi Lion ,
Is this product fall under the Singapore Deposit Insurance Act ?
Please advise.
thks & rgds
Chee
ReplyHi 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.
ReplyHi
,
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. !
ReplyDoes anyone know what is the best FD or savings rates offered currently ?
ReplyHi 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.
ReplyHi Jasmin,
The product is offered as a single premium insurance product by HSBC Insurance and will not be affected by the failure of HSBC bank.
Please see my other post for a more detailed illustration on the yield:
http://www.martinlee.sg/what-i-meant-by-annualised-yield/
ReplyHi
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?
Hi CC Lim,
Apologies for being a bit unclear in my post. Please see the latest post for a more detailed illustration:
http://www.martinlee.sg/what-i-meant-by-annualised-yield/
ReplyDo you know what is the interest on the endowment plan ? FD interests are very low now and endowments do seem more attractive .
ReplyHi Blur,
the interest on the HSBC plan is given as the annualised yield in my post above.
Reply