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Endowment or structured deposit give better returns

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Old 09-10-2019, 12:04 PM   #1
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Endowment or structured deposit give better returns

In 2017 i sign up a 5 years structured deposit with a bank. I put 5k. Every year i get $95 n its guaranteed. I think when it ends 5 years later, there will be abit more interest paid to me.

Now i look at the endowment plans, the guaranteed interest rate is like so low. I not interested to look at non guaranteed rates. If i put 5k into endowment plan, i don't think i can even get back $95 every year

I think the guaranteed rates for endowment plan is even lower than structured deposit?

Seems like its better to put your money into structured deposit than to put in endowment plan?

Last edited by Singlenotbui; 09-10-2019 at 12:07 PM..
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Old 09-10-2019, 12:20 PM   #2
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In 2017 i sign up a 5 years structured deposit with a bank. I put 5k. Every year i get $95 n its guaranteed. I think when it ends 5 years later, there will be abit more interest paid to me.

Now i look at the endowment plans, the guaranteed interest rate is like so low. I not interested to look at non guaranteed rates. If i put 5k into endowment plan, i don't think i can even get back $95 every year

I think the guaranteed rates for endowment plan is even lower than structured deposit?

Seems like its better to put your money into structured deposit than to put in endowment plan?
Depends on which type of endownment. There are a few that just ended we call it trench, its 2.25 or 2.3% per year and its only 3 years term. Capital and return is guaranteed.
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Old 09-10-2019, 12:37 PM   #3
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Depends on which type of endownment. There are a few that just ended we call it trench, its 2.25 or 2.3% per year and its only 3 years term. Capital and return is guaranteed.
What is trench?

When i look at the endowment plans brouchure, i don't see then writing guaranteed 2.25 or 2.3% per year leh.

I believe for endowment plans to give so high guaranteed rates, they must require u to put in a large amount, for example 50k n above.

Whereas for structured deposit just need minimum 5k
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Old 09-10-2019, 12:38 PM   #4
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What is trench?

When i look at the endowment plans brouchure, i don't see then writing guaranteed 2.25 or 2.3% per year leh.

I believe for endowment plans to give so high guaranteed rates, they must require u to put in a large amount, for example 50k n above.

Whereas for structured deposit just need minimum 5k
Trench is come out limited time only. Yes usually min is about 20k
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Old 09-10-2019, 12:54 PM   #5
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Trench is come out limited time only. Yes usually min is about 20k
e.g. NTUC Capital Plus.

Hotcakes products.
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Old 10-10-2019, 05:41 PM   #6
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In 2017 i sign up a 5 years structured deposit with a bank. I put 5k. Every year i get $95 n its guaranteed. I think when it ends 5 years later, there will be abit more interest paid to me.

Now i look at the endowment plans, the guaranteed interest rate is like so low. I not interested to look at non guaranteed rates. If i put 5k into endowment plan, i don't think i can even get back $95 every year

I think the guaranteed rates for endowment plan is even lower than structured deposit?

Seems like its better to put your money into structured deposit than to put in endowment plan?
I have yet to see insurers give 0 NG bonus for 25 years though. If you tell me out of 25 years, 5 years never give NG, i still can believe lah.

If you tell me no TB, i also believe lah (AIA financial guardian was hit by AIG that time).

If you are risk adverse, look at the 3.25% BI. But that means the market is bloodbath, no TB, and market has been in extended recession for 5 to 7 years.
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Old 10-10-2019, 11:25 PM   #7
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In 2017 i sign up a 5 years structured deposit with a bank. I put 5k. Every year i get $95 n its guaranteed. I think when it ends 5 years later, there will be abit more interest paid to me.

Now i look at the endowment plans, the guaranteed interest rate is like so low. I not interested to look at non guaranteed rates. If i put 5k into endowment plan, i don't think i can even get back $95 every year

I think the guaranteed rates for endowment plan is even lower than structured deposit?

Seems like its better to put your money into structured deposit than to put in endowment plan?
Structured deposits usually involve you taking some sort of risk in return for higher yields. That is, you might get back a lot less than you put in.

Endowment plans involve you locking your money up and not being able to touch it for five years. This is not great, especially when you can get higher guaranteed yields by buying Singapore government bonds or SSBs (and you can get to your money more easily!)

They're both terrible investments, on the whole.
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Old 10-10-2019, 11:29 PM   #8
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What is trench?
I hate to be that guy, but—he means "tranche". A trench is the hole you dig in the ground to lay a pipe. A "tranche" is a single offering of a financial product, or a single class of a financial product.
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Old 11-10-2019, 04:22 AM   #9
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Structured deposits usually involve you taking some sort of risk in return for higher yields. That is, you might get back a lot less than you put in.

Endowment plans involve you locking your money up and not being able to touch it for five years. This is not great, especially when you can get higher guaranteed yields by buying Singapore government bonds or SSBs (and you can get to your money more easily!)

They're both terrible investments, on the whole.
How abt fixed deposit?
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Old 11-10-2019, 05:09 AM   #10
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How abt fixed deposit?
https://www.moneysense.gov.sg/articl...tured-deposits
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Old 11-10-2019, 07:35 AM   #11
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Thanks. Seem fixed deposit safer for retirees.
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Old 11-10-2019, 07:51 AM   #12
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Structured deposits usually involve you taking some sort of risk in return for higher yields. That is, you might get back a lot less than you put in.

Endowment plans involve you locking your money up and not being able to touch it for five years. This is not great, especially when you can get higher guaranteed yields by buying Singapore government bonds or SSBs (and you can get to your money more easily!)

They're both terrible investments, on the whole.
Pls dun continue to write like a book!

The past 2 years, there have been short term endowment plans with guaranteed returns and guaranteed capital, and the returns are higher than SSBs. Do u know what is the latest returns for SSB? Do u know how much is the guaranteed returns for short term endowment plans? 2.7%, 2.5%, latest is 2.3%! (some prior posts already explained)

Same for structured deposits. U have to read the tnc on how it is structured, some have guaranteed capital, guaranteed returns but maturity return is dependent on some outcome. So read the tnc. Dun just generalised or write sweeping statements!
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Old 11-10-2019, 08:26 AM   #13
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I am quite certain TS was referring to the structured deposit offered by maybank in the past. But he cannot compare previous deposit with current endowment cause return on instruments change with time, assuming return and capital guaranteed.
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Old 11-10-2019, 11:32 AM   #14
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I am quite certain TS was referring to the structured deposit offered by maybank in the past. But he cannot compare previous deposit with current endowment cause return on instruments change with time, assuming return and capital guaranteed.
I got structured deposit from uob. Not from maybank
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Old 11-10-2019, 12:26 PM   #15
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I got structured deposit from uob. Not from maybank
I don't recall uob gives guaranteed interest except first year and remaining years would depend on performance of underlying products.
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