Tan Kin Lian's Blog: Early redemption penalty

Friday, July 06, 2007

Early redemption penalty

COMMENT POSTED IN MY BLOG (edited)

I had two tranches (of a structured deposit), deposited in 2004 when interest was low. The bank staff was not honest and forthcoming in telling me the early redemption penalty. I was told that I would get a certain interest rate or higher.

When I tried to pull out last year, I was told penalty is 15%. Well, I was foolish enough to trust the relationship manager in that they are telling lies during signing of the placement.

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REPLY:

You must read the brochure or prospectus carefully and understand the product, before you invest in it. If the material is too difficult, avoid the product. Do not take any verbal assurance. See it in writing.

5 comments:

Thomas Phua's Blog said...: Ha ha ha....I am an Insurance Advisor, I trust that Relationship Manager as I am trusted by my clients when I present to them their plans.

I expect same level of professionalism and honesty, I was wrong.

Many are deceived by bancassurance sales people, mis-selling.

I told my clients, please follow your folks to the bank if they need to draw money.

Last year when I went to POSB, I was asked if I want to place in the deposit that gave 5% and following year, will have the features of such.

I purposely spoke louder( victim of two placement ), if you have the ethics to sell this plan to your parents, call me tomorrow, this is my number. I wanted other customer to hear it too, so I spoke a little louder. There was awful silence as I walk out of the banking hall, smiling.

I hope bancassurance will bear a thought for the hard earn money of the people, especially the senior citizen's hard earned money.

- Thomas Phua; July 06, 2007 10:00 AM
Thomas Phua's Blog said...: I did ask for black and white, and the relationship manager told me there isn't except a few pages of small print terms and conditions.

I asked for the withdrawal penalty and there was none given to me.

I trusted them but was bitten.

Yes, buy a product that one is familiar with.

I am still having zero interest now, waiting to collect my cool intact money in 2009 looking very much a FOOL.

I will get some interest only if the SOR rate goes bottom out again.

My stupidity is in the redemption penalty, that I believed her word, than insisting on black and white which she cannot produce.

- Thomas Phua; July 06, 2007 10:07 AM
Anonymous said...: Why complain? Some insurance products such as annuity have surrender charges also.; July 06, 2007 10:30 AM
Anonymous said...: So you see what damage trust has done.The newspapers are abound with
stories of people being cheated because of trust. The insurance agents often use this ploy too. First gain the confidence of the prospects and then do the killing.Tell me if i am wrong. If not why Singaporeans are under insured? Simple , clients trust agents and agents sell them to earn high commission. I know I am treading on thin ice, but that is the truth.; July 06, 2007 1:29 PM
Thomas Phua's Blog said...: If you are treading on thin ice, just be careful one day, you will fall into it , and hopefullu survive the chill.

There are black sheeps in all professions and all walks of life. This does not mean the honest ones are not around.

Happy treading, if I pass by when you fall, just yell, I may pull you out, but I try not to unless I drown together with you.

I have many who walk with me over solid ground and I am happy to walk with them.

- Thomas Phua; July 09, 2007 10:59 AM