why I cant share with the saving plan I have for the excelpay 20?

get insurance and saving. the best is invest in gold. appreciation 20-25% per year. need more info just call me.

hp: 012-9883445
email: putremas@ymail.com
website: www.putremas.com

Anybody has any good info on "Public bank/ING One educate" saving fund?

I just opened one today for my daughter. As always, the agent laid out a nice package which was hard to ignore.

From what I can gather, these are some of its features:
1) Average interest of about 5%/year (might be more or less than this)
- interest will be compounded just like any other savings account

2) Fix savings per month e.g RM175, RM325 or RM488/month
- the savings is MY money, there are no charges or hidden charges

3) Cannot withdraw the money for at least 10 years
- if withdraw any amount before 10 years, will be charged 10%
- can withdraw after 10 years without any charges

4) Free ING insurance coverage (Errmm... I think it is TPD and life insurance, can't remember the details)

What do you guys think?

This post has been edited by kmarc: Feb 26 2010, 04:36 PM

Its a normal low risk education saving plan for children. All the insurance companies provide more or less the same protection and interest. What's important is how the company perform.

I see. The agent told me that on average, it is about 5%. Even during the 2008 economic crisis, the fund still gave 3.1%, which is still better than FD.

The 5% is from the sum insured or total premium paid? Normally it was sum insured which the amount is just half of total premium paid. So actually is was 2.5% which is almost the same or lesser than FD.

Beside that the interest is not guaranteed and only base on historical record. The advantage is, it force u to save with the policy term and good for those who are not discipline of their saving. However, the bad thing is when u having difficulties to commit for the particular policy year or month, either u have to stop the policy or u have to borrow from family or friend to pay the premium.

It was based on the sum assured. But normally not half, its about 2/3 of the total premium paid. For example, premium paid of 150k and the sum assured will be 100k. Based on my experience, the interest rate for normal education plan was 5-7% which means that min is 5% max is 7% for certain companies.

I had to agree with almeizer that education plan was a method to force you to save money. However, please do not or transfer all your money from FD to this plan even if its better interest than FD. It can be used as one of the method to save your money. We must always diversified our money.

This post has been edited by weikian: Feb 28 2010, 03:09 PM

Aikes! I didn't really ask them specifically about that.

The reason was that he said whatever money I put in is my money, and the interest will be paid yearly based on how much I put in.

I just assumed that if I put in RM200/month, I will get interest of RM2400 at the end of the year!!!

Damn, should have specifically asked him that.

Oh another thing, he said yesterday was only a one day special promotion, where the insurance comes free...... dunno how true that is....

5-7% is ok for me as SSPN only gives 3+% although we can deduct that from the income tax.

No la, FD is for emergency money and won't be touched for whatever reason.

Normally the interest is based on the sum insured and not the amount u paid. Rarely see insurance company pay the return or interest based on premium. Maybe u should ask for more details with the agent and read through the policy when u get it. Usually there is 15 days grace period for fully refund. U must make sure it's suit u and u can commit during the policy years.

Last day promotion is the tactic they use to create urgency so that ppl will buy without think too much.

If not mistaken, SSPN return is based on premium and not sum insured.

This post has been edited by almeizer: Feb 28 2010, 08:06 PM

It's good that you've started a savings plan for your child. A steady return is what you should look for for education savings and 5% sounds good. Returns are usually based on sum assured so it would be good for you to check on that policy document again to be sure.

Like Almeizer says, it could be a case of urgency creation as that usually opens the purse faster..

I see. I will ask them tomorrow when I fax over the birthcert. Thx for the advice.

I did specifically ask the agent what the promotion was all about and he did specifically mention that the insurance was free only for that one day. Thanx for reminding me that there is a cooling off period. Will read through the policy once it comes.

Ok, will read through the policy once I get it. Thx!

Hehe there was once an insurance agent told me about a 1 day deal as well. The moment he said that, I told him I wasn't interested anymore because I needed more than a day to decide(consult family), then he retract what he said and told me he can process it later because he has friends inside...

This post has been edited by skiddtrader: Mar 1 2010, 12:27 AM

Customers are better informed nowadays to fall for the same trick over and over again esp the financial savvy ones.

i feel the best method to generate more income is through this method.

1) Save as much in the FD or SSPN.
2) When your child reach 15 years old above to 16 years old, i will teach him business. get him to start small business progressively. Start with Lemonade business. Feel the failure in life and success in life with small investment of RM 2K given to him/her.

3) 17-19 year old. New Business Plan . Investment of RM 5K given to him . Check his progress and see if he can manage his goal.

4) 20-22 years old . this is the time for self discovery. Invest 10K in his hobby and find out his career path. If he can makes the money from his career path, he can fight hard to get the education loan or work part time to reach his goal.

5) 23 - 28 years Should be the best time in the University.

I feel that many students fail to realize their dream and most go into college studying something they dont like. I think starting them older is better and they should be able to value their money and career more.

Really make no sense to save all the money and wasted on your child education when most typical malaysian were mostly preparing the child to enter the university but not letting your bird to explore their real food.

A very Americanised style but that's a good approach to try since most kids do things for their parents than for themselves. This way would help bring the best out of them if they're mature enough otherwise it'll just break them apart.

i like this.

and point no 1 too, the baby is still a baby..the father could use the tax relief

It took me 10 minutes to decide.

Anyway, I called the agent again today and he CONFIRMED that the interest will be the amount I put in as the one-day promotion included free insurance. I do sincerely hope it is true as this would be the best deal I ever got for an education fund!!!

Hmmmm..... I like your concept.... of letting your child explore his/her potential first and then decides what he/she wants to do.

I feel somewhat "anxious" about saving money for my children and sending them overseas for further studies just to see them ending up becoming a salesman (for example, not to imply that degree holder cannot become successful salesman) due to various reasons e.g. recession......

Anyway, my child is only 1+ year old so I still have lots of time to think about it.

This post has been edited by kmarc: Mar 1 2010, 12:31 PM

This is probably the best i can think of.
We can save as much as we want but I feel your Child's Desire to turn something into money is more valuable than anything. Teach them about value and burning desire to love Money.

I seen some parent already let their child start their car workshop and modification... they learned through their passion in race car. Now they are CEOs of their own car workshop and even accessories catering to luxurios car.

The money we save also takes years to accumulate than their passion work.

Definitely will try to instill good values in them. However, I won't make them love money as that can cause a lot of problems e.g. earning money at the expense of others. Better to teach them the value of money and how to appreciate what you have as money is never enough (unless you're warren buffet...... )

This post has been edited by kmarc: Mar 1 2010, 06:54 PM

Wow.. I can't believe this thread is still active. Thank you very much for all yr input. Really really appreciate it.

At the moment I'm still learning bout property but I had started saving for my baby via ASB (thru my wife name) & ASW (baby's name - since u need to be 18+ yrs old to open ASB account).

Nevertheless, if you do have any idea to share please feel free to post it in this thread. I'm sure a lot of people had learn a lot thru this topic.