Asked by Anonymous
In regards to the plan, they mentioned that the interest rates will be 2.02% for the first 3 years, and then based on "prevailing rates" thereafter. Does anyone know what does prevailing rates mean? Is it like a SIBOR rate? And is it possible to view it anywhere?
It just a loose reference to the interest rate environment at that time. The contract wrote ' the crediting rate will be determined by us based on the prevailing rate, subject to the minimum guaranteed crediting rate of 0% p.a '.
So Technically they can set the rates at any percentage, or even zero if they like to. =D But there will lose them clients' monies. In reality what it means is just they will set the rates they deemed to be competitive (while they still can make money).