Jun 12 2020, 09:59 AM
QUOTE(Mr.Docter @ Jun 12 2020, 06:47 AM)
Hi,
Received this offer from one of the bank. Details as below.
- A fixed deposit (similar amount) per annum whereby one-off for the 1st year and multiple deposits for the subsequent year.
- Counted by the date of 1st deposit as a year for the dividend.
- The principle is compulsory to be deposit annually for six years before being able to withdraw.
- After the 6th year, if you haven't withdrawn the accumulated principle - you can enjoy continuous dividends for a maximum of 20 years.
- Dividends for frontliner - 30% p.a (!!!) - limited time & quota for selected group of individual.
- Minimum of RM10k/year. Don't overcommit as you need to deposit a similar amount every year for six years.
- If you haven't withdrawn the dividends, it will be compound for the next year with an average of 5-8%. However, you are free to withdraw the dividends as you like.
- Possible to open more than one policy.
- Policy approval is based on overall financial status.
- Limited quota.
- Insured by PIDM.
The guaranteed of 30% p.a for maximum of 20 years was in black & white on my form from the bank, not agent's lips.
Most likely going to open for both of my kids if all okay.
Thanks in advance for all the input and insight!
I don't know what plan you are posting.Received this offer from one of the bank. Details as below.
- A fixed deposit (similar amount) per annum whereby one-off for the 1st year and multiple deposits for the subsequent year.
- Counted by the date of 1st deposit as a year for the dividend.
- The principle is compulsory to be deposit annually for six years before being able to withdraw.
- After the 6th year, if you haven't withdrawn the accumulated principle - you can enjoy continuous dividends for a maximum of 20 years.
- Dividends for frontliner - 30% p.a (!!!) - limited time & quota for selected group of individual.
- Minimum of RM10k/year. Don't overcommit as you need to deposit a similar amount every year for six years.
- If you haven't withdrawn the dividends, it will be compound for the next year with an average of 5-8%. However, you are free to withdraw the dividends as you like.
- Possible to open more than one policy.
- Policy approval is based on overall financial status.
- Limited quota.
- Insured by PIDM.
The guaranteed of 30% p.a for maximum of 20 years was in black & white on my form from the bank, not agent's lips.
Most likely going to open for both of my kids if all okay.
Thanks in advance for all the input and insight!
But based on above limited info, it is more like a saving plan or endowment plan. It is not a fixed deposit with 30% or whatever % dividend/interest.
Saving plan guaranteed cash back is not your earned interest or dividend. It is not like you placed 100K with 30% cash back, then you you have 100K + 30K. It doesn't work that way.
Once you get the 30%, then surrender value drops.
A portion of cash back came from your own capital.
Normally saving plan return rate or IRR is more and less comparable to FD rate if held until maturity.
You need to count entire amount guaranteed cash back you are getting + maturity amount you are getting to determine the "real" dividend you are getting.
It is not like every year you get guaranteed 30% or 20%, then you still get back your own origin principal amount.
Saving plan is long term commitment, any premature withdraw may affect the principal amount, it is not a fixed deposit.
It is irresponsible for anyone to promote saving plan as fixed deposit.
It is also irresponsible to say guaranteed cash back is an interest or dividend earned.
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