Customer is stuck with structured deposit

Mr Tan,

I enjoy reading your blog it is very informative. Hopefully we can still read your blog after you left NTUC.

I have bought structured deposit from a bank in 2004. It was terminated in 2005 and my funds was transferred to purchase another structured deposit on the advise of the bank representative. He explained that the bank is revising the rate for the benefits of customer.

I was told to pay a replacement cost of 15% as I had terminated early. I was not getting the interest rate of 3.18% because the interest rate has gone up. I was also told it is a different kind of structured deposit.

I felt so cheated. How can I seek redress or highlight my experience to others so that they will not be trapped into a similar situation.

The product with the word "deposit" is misleading fom a layman's view. We always think that a structured deposit is like a fixed deposit.

Structured Deposit has some form of risk like unit trust, and is also tied to some interest rate which is too complicated for public to understand. Where is the transparancy of the product?

CS

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Dear CS

I suggest that you seek the advice of the MAS, Consumer Association (CASE) or of the Association of Banks regarding the unsatisfactory advice given to you by the bank representatives.

Tan Kin Lian