Any view on this structured deposit by UOB?

[andylaufromsingapore]

http://www.uob.com.sg/personal/investments/structured/current_plans.html#at_a_glance

 

[Perisher]

Min. Effective Interest Rate:
1.8627% per annum

That's slightly worse than bonds, why not consider bonds?

 

[naro]

Personally dont see the point in getting money locked in for such low rates.

 

[wts2013]

Savings a/c also earn more leh, hahaha, then 5 years later do u think those stock prices will behigher than now, hahaha

 

[andylaufromsingapore]

Min. Effective Interest Rate:
1.8627% per annum

That's slightly worse than bonds, why not consider bonds?

which bond?

 

[Perisher]

FCL's bond is 3.65%, AXXZ.
https://sg.finance.yahoo.com/q?s=AXXZ.SI
CMT's bond is 3.08%, TY6Z.
https://sg.finance.yahoo.com/q?s=TY6Z.SI
Both for 7 years.
CMT started 1 year early while FCL just started.
Both can be bought from the market like normal stocks.

 

[cscs3]

Stay away. Now a day fix deposit is around 1.4 to 1.5%. Go for fix deposit so your money do not get tie down for a few years.

 

[jchua010]

Wouldn't recommend that..

 

[cybercom8]

think you are better off picking a share like apple and invest the same amount of money...you probably will be much better off in 7-10 years

 

[Shiny Things]

http://www.uob.com.sg/personal/investments/structured/current_plans.html#at_a_glance

This thing is deeply silly.

The worst-case scenario is that you get the minimum interest rate - 1.86-ish% per annum over six years.

The best case scenario is that you get an extra kicker payment of 2% in six years' time - so your best case rate is about 2.15% annualised.

So even the best-case rate is about the same as just buying a 6-year Singapore government bond. Just buy the bonds instead!

(Also, the thing that really freaks me out - they tell you the stocks in the basket, but they don't tell you the payoff function anywhere. Is it a best-of? A worst-of? A regular vanilla basket? A digital basket? What's the strike? What's the participation rate? Is it a call or a put? How am I supposed to decide whether to invest if I don't know what I'm investing in?)

 

[colonelbenders]

Structured deposits have v low returns by nature and they tie you up for long time. so basically not gd deal

 

[wahkao3]

(Also, the thing that really freaks me out - they tell you the stocks in the basket, but they don't tell you the payoff function anywhere. Is it a best-of? A worst-of? A regular vanilla basket? A digital basket? What's the strike? What's the participation rate? Is it a call or a put? How am I supposed to decide whether to invest if I don't know what I'm investing in?)

i guess you can assume all these are structured in the bank's favor

 

[SpinFire]

Should consider CMT or FCL bonds rather than this. What's more, the bonds are liquid too, can sell off anytime u want