New Structured Deposit by Standard Chartered

[vogriphach]

Seems like Standard Chartered has rolled out a new structured deposit. Got decent fixed interest with some potential upside accdg to the docs I got from my banker.

5 years 11 months.

Fixed payment steps up from something like 1.40% pa to 1.80% pa from first year to fifth year.

Then at maturity can get 8% interest if the 3 underlying shares (DBS, Singtel, Keppel Corp) are at or above the initial price.

Seems quite good leh since I'm getting much less than that from TD. Am quite risk averse oso. Only downside is that there may be a penalty if I withdraw it before maturity and it's not guaranteed by the Singapore deposit insurance.

Thoughts?

 

[anfielder]

I think it's a crap return for locking up your money for 5 yrs 11 mths.

 

[yttik]

These 3 stocks at their current price lock down is not wise. If you think these shares really have upside potential, might as well buy them yourself. your return is more than 1.8%/yr.

Risk wise, more downside than upside potential for next few years.

 

[hwmook]

I think it's a crap return for locking up your money for 5 yrs 11 mths.

Its good for those people who are extremely risk adverse aka hum ji. My mother finally gave up on these crap structured deposits after getting minimum to no return on them for the past few years. I convinced her that bond funds are the way to go for low risk investment not crap like these.

 

[chopra]

This structured product = fixed deposit + call options

making it layman to lure peasants to buy

 

[Dividends Warrior]

Then at maturity can get 8% interest if the 3 underlying shares (DBS, Singtel, Keppel Corp) are at or above the initial price.

Ok. Buying DBS, Singtel and Keppel now!

Then take profit 5 years later.

 

[polski]

Dun usually post here... normally just observe the discussions.
But anyway, I just went to ask my banker about this SD. After hearing about it, I think it really depends. Can't compare also with direct counters or bond funds coz those might drop also. At least this one worse case scenario is you will still get 8% over the first 5 years. So still higher than fixed deposit if you base it on current interest rates.

But yeah I agree the interest is not that high, I guess it will suit you if you are a risk averse kind of guy.

 

[Shiny Things]

Seems quite good leh since I'm getting much less than that from TD. Am quite risk averse oso. Only downside is that there may be a penalty if I withdraw it before maturity and it's not guaranteed by the Singapore deposit insurance.

It's a sh!tty deal.

If you're risk-averse but need income, and don't mind locking your money up for five years (and make no mistake, if you invest in this it WILL be locked up for five years; the early withdrawal penalties will be huge), stick your money in bank pref shares instead.

If you want the performance of those three shares, just buy the shares instead.

If you buy this product, you're locked in for five years, and you're taking a risk that NONE of DBS, Singtel, or KepCorp run into trouble in the next five years. If one of them has an unfortunate accident, you're out your 8%.

As a side note, what's with all these deals with a tenor of exactly 5 years and 11 months? Is there some sort of regulation that only kicks in on deals of 6 years or longer?

 

[cscs3]

Dun usually post here... normally just observe the discussions.
But anyway, I just went to ask my banker about this SD. After hearing about it, I think it really depends. Can't compare also with direct counters or bond funds coz those might drop also. At least this one worse case scenario is you will still get 8% over the first 5 years. So still higher than fixed deposit if you base it on current interest rates.

But yeah I agree the interest is not that high, I guess it will suit you if you are a risk averse kind of guy.

Cannot compare this way, SD lock your money in for long term. FD you can renew by year.

Also SD interest is pay base on your principle invested. For FD (if you choose to continue), 2nd year interest will be your principle + interest you earn in the first year.

Never get sold by these sales man.

 

[Mecisteus]

i suggest you just go for this:

http://forums.hardwarezone.com.sg/s...5-years-compound-1-7%-guaranteed-4401207.html

 

[Keverus]

i suggest you just go for this:

http://forums.hardwarezone.com.sg/s...5-years-compound-1-7%-guaranteed-4401207.html

 

[Keverus]

Ok. Buying DBS, Singtel and Keppel now!

Then take profit 5 years later.

only got money to buy Singtel

 

[Majestic12]

Its good for those people who are extremely risk adverse aka hum ji. My mother finally gave up on these crap structured deposits after getting minimum to no return on them for the past few years. I convinced her that bond funds are the way to go for low risk investment not crap like these.

Bond funds? Oh boy. All the best.

 

[Majestic12]

It's a sh!tty deal.

If you're risk-averse but need income, and don't mind locking your money up for five years (and make no mistake, if you invest in this it WILL be locked up for five years; the early withdrawal penalties will be huge), stick your money in bank pref shares instead.

If you want the performance of those three shares, just buy the shares instead.

If you buy this product, you're locked in for five years, and you're taking a risk that NONE of DBS, Singtel, or KepCorp run into trouble in the next five years. If one of them has an unfortunate accident, you're out your 8%.

As a side note, what's with all these deals with a tenor of exactly 5 years and 11 months? Is there some sort of regulation that only kicks in on deals of 6 years or longer?

Bank preference shares that are perpetual? Oh boy, yet more 'useful' Internet advice.