Hi, Mr Tan
I share your thoughts on the structured deposits where the bank promises 100% capital protection on an invested sum of money. Sadly, I believe they are a lot of old folks who have succumbed to the bank officers persistent pursue and ended up locking their retirement funds for at least 4 years or more with much returns.
I have enclosed a list of these deposit rates from a local bank and apparently with the lock-in period of 4 years, almost near to maturity rated at (99.42%), it barely makes any profit yet (99.42%), possibly there were initial payouts of say 2% for 2 years, the amount is just miserable.
|Enrich Account (Tranche A)||6Jun03||11Jun08||SGD||100%||NA||97.19%||7May07|
|Enrich Account (Tranche A)||6Jun03||11Dec08||SGD||100%||NA||95.77%||7May07|
|Enrich Account (Tranche A)||6Jun03||11Jun07||USD||100%||NA||99.42%||7May07|
|Enrich Account (Tranche A)||6Jun03||11Jun08||USD||100%||NA||96.12%||7May07|
|Enrich Account (Tranche B)||20Jun03||25Jun09||SGD||100%||NA||94.31%||7May07|
My very own past investment, on average on unit trusts for 5-6 years the profit is between 10-15%. I wonder how many of those structured deposits from banks are worthy to invest.