Any thoughts on structured deposits?

[financial_guru]

Have you considered bonds (fixed-income) funds?


There is still capital risks, but they are not as volatile as equities. Returns are typically 3 - 6 % depending on underlying bond ratings.

[kaitlynM]

That's a pretty nice plan, these days where economic crisis seemed to affect almost all of us, savings and investments will be a great idea to ensure that your money is in good hand. Students are also affected by financial crisis that's why many of them go for student loans. I read in an article that the government utilizes subsidized student loans as a method of motivating students to get higher degrees. As of 2012, however, graduate student loans will not have their interest subsidized, which will change responsibility for paying $18.1 billion over 10 years to pupils. Source of the article: http://personalmoneynetwork.com/moneyblog/2011/11/07/graduate-student-loans-to-lose-interest-subsidy

[River]

Bonds will generate enough interest to match inflation ie. the value of your money is protected over time.

[starlight1968sg]

River:

Bonds will generate enough interest to match inflation ie. the value of your money is protected over time.

Really?
Which bond?

[River]

Many come and go. The recent launch by Chung Kung (not sure if I spelted correctly), minimum sum $250000, 5.125%, maturity 5 years is one example.

[bobonana]

Correct me if i am wrong but bonds are usually in large denominations so if you have large warchest bonds are definately a good option.


If your warchest is limited you can consider preference shares or even single premium . I use to purchase single premium products from Manulife and UOB Life assurance, capital guaranteed, four years lock in but returns are not fantastic around 3-4%, but sure as hell beats the FD rates. UOB LA is not longer around they have sold it to prudential.

UOB also have different series of structured deposit, usually link to equity. Capital guaranteed, usually lock in period is 5 years, they like to structure such as for example 5 years total guaranteed interest 8%, the bonus interest is based on the performance of the underlying asset target, for example the STI, based of shares or even gold prices. Not every series is appealing so have to do your homework.