Martin Lee @ Sg
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NTUC Launches Capital Plus (CPN15)

NTUC has just launched another series of their Capital Plus product.

Capital Plus (CPN15) is a single premium 2-year endowment plan with a yield of 1.4% p.a. This is much lower than their previous series which had a yield of 1.8% p.a.

The last day of application is 25th Sep 2009 or when the subscription amount of S$65 million is reached, whichever is earlier.

The minimum investment is $10k (cash or SRS only) which will give you $10282 on maturity at the end of 2 years. The full FAQ can be downloaded below:

Capital Plus CPN15 FAQ

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9 comments
A Singaporean says 9 years ago

From reading the FAQs, I gather that this product is an investment cum insurance product, but it is the kind that is piss poor in any one aspect of them: investment interest is only at 1.4% per annum, while you get only up to 105% insurance coverage (only in the second year). However, a big plus is that all premiums are guaranteed if you hold for the full term, unless NTUC Income goes down (which is highly unlikely).

Ever since structured investment cum insurance products that invest into risky places like GreatLink Choice has collapsed, it seems that this kind of products are making a comeback in the insurance industry. I don’t like them, but for people who demand that their investments be placed in places with zero risks (i.e., capital is guaranteed), I don’t think they have many choices.

Reply
Haddon says 9 years ago

I’m sorry if this is an ignorant question:

Why do people buy these bonds with such a low yield? Isn’t it much better to just hold it as liquid cash?

Reply
    lioninvestor says 9 years ago

    Hi Haddon,

    Some people leave all their money in savings account their whole live and don’t use it for anything at all.

    Reply
James Tan says 9 years ago

Hi lion,

1.4% only ? How come I got 1.6% from the same tranche ? Pls check and revert. Tks

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    lioninvestor says 9 years ago

    Hi James,

    the 1.6% was given to those who missed out on the previous series, ie subscribed but had their money refunded.

    Reply
Intheknow says 9 years ago

becuz one is NTUC and the other is CIMB?

my personal opinion is NTUC has a lower chance to default.

remember sg government guarantee on bank deposits end Dec 2010.

Reply
    Vincent Teo says 9 years ago

    Beyond 2010, we still have the $20,000 deposit guarantee per account.

    Reply
Vincent Teo says 9 years ago

I last heard that the 2 years FD for CIMB is at 1.7% and if I am not wrong, there is no minimum amount.

I wonder why should people subscribe to this?

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    lioninvestor says 9 years ago

    Hi Vincent,

    You are right.

    One possible reason has been pointed out by intheknow.

    Reply
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