What is your opinion for HSBC Online endowment 2.5%

[evonne_chua]

Enjoy every moment of pure joy in fulfilling the promises you had given to your loved ones.



At HSBC Life, we believe in your promises and are here with our limited time offer to help you fulfill those promises.



HSBC Life Online Endowment offers guaranteed returns of 2.5% per annum for a short policy term of 3 years.

https://www.hsbc.com.sg/insurance/products/savings/online-endowment/

Good to invest? 2.5% per year, risk free

meanwhile

HSBC planning to cut up to 10,000 jobs in drive to slash costs: Report
Read more at https://www.channelnewsasia.com/new...ts-retrenchments-finance-cost-saving-11975380

 

[KeytoFreedom]

Looks good... seems to be guaranteed

Sent from OnePlus ONEPLUS A5010 using GAGT

 

[iphone88]

Can get back the principal and interest after 3 years?

 

[Persie]

It is a good place to park SRS money

 

[TerryPower]

looks good. i was deciding whether I want invest in greatassure https://www.ocbc.com/personal-banking/insurance/greatassureendowmentinsurance.html or not but I think this one by hsbc sounds better

seedly wrote a short post on it https://blog.seedly.sg/hsbc-life-online-endowment/

 

[Cryophoenix]

HSBC retrenching so interest might not be as attractive.

 

[Geeezz]

so what if it’s retrenching? the 2.5% is guaranteed isn’t it?

 

[Ahboy069]

If hsbc go bankrupt what will happen to the money ?
That y they are raising fund now

 

[boredboiboi]

If hsbc go bankrupt what will happen to the money ?
That y they are raising fund now

Protected by sdic.

 

[5408854088]

HSBC retrenching so interest might not be as attractive.

If hsbc go bankrupt what will happen to the money ?
That y they are raising fund now

seriously guys..

 

[evonne_chua]

seriously guys..

bankrupt??

hahah

 

[Ahboy069]

Protected by sdic.

This sdic thing is 75k per bank or total 75k. ?

 

[BBCWatcher]

This sdic thing is 75k per bank or total 75k. ?

No, there's at least S$100,000 of total coverage since this plan falls under SDIC's insurance coverage. Actually, it looks like this particular plan would fall within the scope of the SDIC's S$500,000 limit (as I read it), but please double check that detail if relevant to you.

 

[evonne_chua]

looks good. i was deciding whether I want invest in greatassure https://www.ocbc.com/personal-banking/insurance/greatassureendowmentinsurance.html or not but I think this one by hsbc sounds better

seedly wrote a short post on it https://blog.seedly.sg/hsbc-life-online-endowment/

is there other attractive short-term endowment plan like this?

I only know Singlife also have something similar

https://blog.seedly.sg/singapore-life-short-term-endowment-plan/

 

[Geeezz]

it’s really a good rate fr a three yr term. but tbf it did nt attract me one bit as i am not retiring three yrs later nor need any money three yrs later. so why am i accepting 2.5% fr three yrs and took on reinvestment risk after three yrs? (meaning that i might get returns of lesser than 2.5% three yrs later)

 

[BBCWatcher]

it’s really a good rate fr a three yr term. but tbf it did nt attract me one bit as i am not retiring three yrs later nor need any money three yrs later. so why am i accepting 2.5% fr three yrs and took on reinvestment risk after three yrs? (meaning that i might get returns of lesser than 2.5% three yrs later)

That's exactly right.

If for example you're expecting to pay someone's university tuition bill starting about 3 years from now, and if you have some dollars to save now, this endowment plan is a very reasonable choice. Just make sure you fully understand the steep early withdrawal penalty and the quirks associated with plan holder's death.

 

[limster]

I wanted to apply using SRS but internet banking tells me I can only top up SRS before 9pm... guess have to do it tomorrow.

 

[KeytoFreedom]

That's exactly right.

If for example you're expecting to pay someone's university tuition bill starting about 3 years from now, and if you have some dollars to save now, this endowment plan is a very reasonable choice. Just make sure you fully understand the steep early withdrawal penalty and the quirks associated with plan holder's death.

But isn't all banks single endowment/fixed deposit similar? Cannot do early withdrawal otherwise will have penalty....only SSB govt deposits allow withdrawal anytime but also means you get less interest

Sent from OnePlus ONEPLUS A5010 using GAGT

 

[BBCWatcher]

But isn't all banks single endowment/fixed deposit similar?

No, the early withdrawal penalty associated with this plan is harsher than that of a typical bank fixed deposit.

 

[haurus85]

Am I right to assume that this is compound interest over 3 years? i.e. Assuming $50k invested:

Y1 P+I: $51250
Y2 P+I: $52531.25
Y3 Final Payout: $53844.53

Or would it just be a flat 2.5% each year ($1250*3) for a return of $53750. Tried looking through the website but couldn't really see. The diff is only $94.50 but still interested to know.