Would you save your money in an investment plan (projected interest rate at ~7-10%) or save it in the bank (interest rate at 0.05%) or save it in a savings plan (interest rate at 3%)? - Seedly
 

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Asked by Anonymous

Asked on 21 Sep 2018

Would you save your money in an investment plan (projected interest rate at ~7-10%) or save it in the bank (interest rate at 0.05%) or save it in a savings plan (interest rate at 3%)?

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Nicholas Chan
Nicholas Chan
Level 6. Master
Answered on 23 Sep 2018

7-10% sounds high. Ask what is the risk of the investment plan. 7-10% might be the optimistic case. Check the downside

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Good Day Every Day
Good Day Every Day
Level 7. Grand Master
Answered on 23 Sep 2018

I would rather put it in Singapore Saving Bond.

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Jay Liu
Jay Liu, Sleepyhead at Land of Dreams
Level 7. Grand Master
Answered on 23 Sep 2018

I'll rather DIY myself by using high yield savings account, bonds, FD than paying high premiums to agents and only break even after 1X years.

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Gabriel Lee
Gabriel Lee
Level 8. Wizard
Answered on 22 Sep 2018

Would go for CIMB Fastsaver (1%), Fixed Deposit or Singapore Savings Bond as all of these are safe and capital guaranteed and offers more than the little 0.05% interest

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Yong Kah Hwee
Yong Kah Hwee
Level 8. Wizard
Answered on 22 Sep 2018

It's projected. What if it doesn't come true?

Are there any fees involved?

Find out what the plan invests in. I generally do no trust any invesment plans giving such high returns.

I'd rather invest myself honestly. Do some research, read some books!

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Jeff Yeo
Jeff Yeo, amateur Social contributor at School of social sharing
Level 7. Grand Master
Answered on 22 Sep 2018
  • You have to look at the fees involved for going with the investment plan. It might not be your 7-10% after the fees

  • You can consider accounts with higher int such as Uob one or DBS multiplier

  • savings plans have very low returns and long time frames I would rather choose SSB

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HC Tang
HC Tang, Financial Enthusiast, Budgeting at The Society
Level 8. Wizard
Answered on 22 Sep 2018

Hi

If you:

(1) Save with an ILP (investment link plan) or pure investment plan, the stated projected rate is 7 to 10% but not guaranteed rate. Should check the guaranteed rate.

=> I wouldn't because i prefer to save it with people who's main business is investment , not side or part of the business is investment only.

(2) save in bank with interest of 0.05% p.a only ?

=> no. way too low.

My choice:

(a) DBS mulplier can fetch 1.85% p.a (interest credited monthly!!!) with salary credit any credit card spend of min $1.

or

(b) CIMB fast saver 1% p.a with no string attach.

(3) Savings plan at 3% p.a.

=> No! For same reason as #1. Though higher interest here at 3% for the plan but it is a plan so I'm tied to it. if I want to be tied, i'll go for FD at close to 2% for 12 months or SSB at 2.21%+ for 10 years. ​​​

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I would invest by myself and save my emergency funds in the bank

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