Wednesday, May 31, 2006

Banks earn bumper profits

The local banks report bumper profits this year. Two banks earns more than $1 billion each, and much higher than in previous years. Even a foreign bank report that they earn more than $500 million in Singapore.

They make higher profits from the following sources:

- fees from sale of insurance and structured products
- high margin on their lending vs cost of funds

This is good news for their shareholders. But it is not good news for their bank customers.

The customers probably get a low rate of interest on their savings, and pay high rates of interest on their loans and credit card rollovers.

Make the banks compete - by looking for better choices to earn higher returns on your money. You can also make better investments to earn several tens of thousands of dollars more!

Come and attend our educational seminar to learn how. Call 6877 3366.
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1 comment:

Thomas Phua said...

I have placed 3 Structure deposits with a bank and now regret it, though then interest environment was low.

Come to think of it, even if I placed it on a single premium Endowment with Ntuc Income, it will give me better return.

I have a few Growth Policy maturing and Capital Plus matured with better moderate yield, better than being get caught in structured deposit, waiting for no interest and the money to rot till 2010 to get my principle back.

Mr Tan, what is your advice, should I bear the pain of early withdrawal from the restructured deposit to move it to any plan with Income?

I understand I will be able to redeem the structure deposit now before maturity at about 84% of principle. Is there any problem that can at least make me break even by 2010 or better?

May 31, 2006 7:21 PM

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