Insurance Planning
With the average savings banks interest rate at a low of 0.14% p.a. in July 2010, investors have been turning to fixed deposits of tenure 1 year and above. Bond of 10 years tenor is also offering good returns that beat the average inflation rate of 3%.
Maybank offers 0.75% p.a. for a minimum deposit of $10,000 of 1 year tenure. CIMB Bank offers 1.3% p.a. for a 24-months fixed deposit with minimum amount of $10,000. OCBC Bank pays 0.688% p.a. for a 9-month time deposit or 0.788% p.a. for a 14-month term.
For investors, especially institutional investors, long tenor bonds are in hot favour. In particular, Temasek Holdings offer of 40 years tenor with 4.2% p.a. interest were snapped up in few hours. Below are some of the bond issues in the past 2 months.
|
|
Amount (S$ million) |
Coupon rate (%) |
Maturity Date |
|
Temasek Holdings |
1,000 |
4.2 |
2 Aug, 2050 |
|
Khazanah Nasional |
900 |
3.725 |
11 Aug, 2020 |
|
Khazanah Nasional |
600 |
2.615 |
11 Aug, 2015 |
|
City Developments |
500 |
2.48 |
3 Sept, 2015 |
|
VTB |
400 |
4.2 |
11 Aug, 2012 |
|
CapitalMalls Asia |
350 |
3.95 |
24 Aug, 2017 |
|
CapitaLand |
350 |
4.3 |
31 Aug, 2020 |
|
HSBC |
300 |
Floating |
9 Sept, 2025 |
Alternatively, investors can also consider NTUC Income Growth Plan of 5-10 years term that offer guaranteed interest rate of 1-2.x% and additonal bonus declared. The total return thus range from 3-4.x% p.a.. Growth Plan also provides personal accident coverage of 2 times the Sum Assured.
Source : The Straits Times, 25 Aug 2010 & 26 Aug 2010
