POSB Invest Equity Series 1 is a 4-year 11-month Structured Deposit that was recently launched by POSB.
The fixed payouts are as follows:
Assuming no bonus payout, the effective interest rate over the period of the investment is 1.48% p.a. (as given on POSB website).
If the prices of ALL three blue chip stocks are 20% higher compared to the prices at the start, then a bonus payout of 2.5% will be given. With the bonus payout, the effective interest rate works out to be 1.96% p.a.
A minimum of $5000 is required to invest in the POSB Invest Equity Series 1. As this is a structured deposit, the investment will not be insured by the Singapore Deposit Insurance Corporation in the event POSB goes bust.