Are there alternatives to fixed deposit that guarantee capital?
My parents recently sold their condo but don't want to buy another just yet. They want to keep the money for 2-3 years first. My dad wants to put the money in fixed deposit. He's very afraid of losing any of his capital. Are there alternatives to fixed deposit which pay higher than ~1.5% p.a. for a six figure sum of money? My parents have no problems locking the sum up for 2-3 years. Thanks!
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Elijah Lee
12 Feb 2020
Senior Financial Services Manager at Phillip Securities (Jurong East)
Some alternatives are:
SSBs: No capital loss, liquidity is within a month with accrued interest paid
FDs: No capital loss, but early termination will only yield your capital in return
Short duration endowment plans: Usually 3 years, with a decent return, but early termination will result in a small financial loss. Probably your best bet if they have no issues with locking the sum up. Best in market now is 2.28% from Aviva.
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Ernest Yeam Wee Leong
12 Feb 2020
Content Creator at www.youtube.com/c/JustBeingErnest
Here are principal guaranteed investments that your parents can look at
**Singapore Government Treas...
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