Any comment on the AmBank MegaFD Enhanced FD?

An insurance linked FD that divide equal amount of fund into two separate scheme:
(1) MegaFD Enhanced FD, 15 months, 4.90%
http://ambankgroup.com/en/RatesFeesCharges...mentsRates.aspx

(2) AmAssurance (forget about the insurance part, just on $ return)
https://www.amassurance.com.my/src/html/am_...d_enhanced.html

Here is the situation:
My dad went to update some FDs and was talked into this scheme. The FD portion can be uplifted after 15 months, but the AmAssurance part can only be withdrawn after 6 years for some return. As can be seen from the example, if withdrawn within 5 years, guaranteed cash value is less than the deposited amount.

What made me angry was, the bank teller did not provide full disclosure on this product and said money back guaranteed and interest for the 6 years period is 4% (which is why my dad think it is a good deal, bank teller said today last day of promo somemore).

So I checked from the website and found there is nothing on the 4% thing. So I called the manager or some officer and found out that the 4% is not guaranteed, it can range from 3-4% and he mentioned something about return in dividend(?).

I asked whether I can get terminate the whole thing and get back full amount. Initially he said cannot, only about 14,200 of the 15,000 for the AmAssurance part but finally said can.

Any comment? Thanks.

Yaya, plan to go together. Will just place the money on normal 12 months FD @ 3.25%. Funds at ambanks are for emergency cases so the rate is acceptable.

8 oct I dropped by Am bank to renew Fd, the staff also trying to sell the same thing. They always said got x% return better than FD. I then asked her is it guarantee? She then said based on the past performance, the projected return is x%.....projected is the key word, no one can guarantee that amount.

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Added on October 12, 2012, 11:59 pm

For Am senior citizen FD, there is an insurance coverage up to RM 20k till 75 age limit only. If your dad is above 75, the insurance coverage will cover the joint account holder, that is you. Rm20k FD for rm 20k max insurance coverage.

Yeah, that is the trick. This one just say 4%, even handwritten for my dad but anyway lucky managed to find out earlier. So everything is good.
Dad not yet 75 but the extra insurance coverage for joint holder is new to me, thanks for sharing.

Uob 12 months 3.75% still on?my ocbc 9 month 3.8% fd is maturing next week.

Yes, I have just place it early this week.

Promo ends dis month?

All the banks are actually the same, they always target senior citizens who walk in for FD. 

Just sharing here, the best FD is Maybank I-Mudharabah Account. Promotion going to end 31 December 2012, Promotion started on 1st January 2012. With Additional 2%, you can get 5% if you save more than 50K and treat it as FD. I surprise no one know this product.

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Added on October 15, 2012, 4:59 pmYou are also getting up to RM50k Death/PD sum covered and up to 3K medical expenses.

Had a look at MB web site. Can't find the +2% information for I-Mudharabah.

Please provide the web link.

Many thanks.

Maybe it's this one.

Maybe it's this one.

http://www.maybankislamic.com.my/promo_get...ign-111230.html

Maybe it's this one.

http://www.maybankislamic.com.my/promo_get...ign-111230.html

Does it mean we put RM50k and we get 5% p.a. for each month until 31 December 2012 ?
Seems to good to be true....     

Anyway, it gave me an idea, those of you who opt for early retirement can join a bank and earn 1% extra from your FDs No need waste time playing FD musical chair.

1% extra is definitely good idea  . But I don't get you    Opted for early retirement then join a bank ?    where is the retirement then 

Anyway, it gave me an idea, those of you who opt for early retirement can join a bank and earn 1% extra from your FDs No need waste time playing FD musical chair.