Maybank Saver Series 8 Structured Deposit

From 2 February to 5 March 2015, invest in Maybank Saver Series 8 Structured Deposit and earn up to 11% over 5 years, including a bonus interest of 1% at the end of Year 5.

Key info:

• 5-year Structured Deposit
• 100% Principal Guaranteed at Maturity
• Minimum Investment Amount of S$30,000

Tenure		Year 1	Year 2	Year 3	Year 4	Year 5	Potential Total Payout
Guaranteed Annual Payout	SGD	2%	2%	2%	2%	2% + 1%*	11%
* Bonus interest of 1% is only applicable at end of Year 5, if the 6-month Singapore Dollar Swap Offer Rate is 3.5% or above.

Please refer to the website for more details.

If you ask me, this may not be the best time to invest in structured deposits at 2% p.a. as we expect interest rates to go up this year and currently, banks are starting to offer interest rates of 1.5% p.a. for time deposits with a tenure of 12 months, so your funds get locked up for a shorter period of time. As a result, you can be more nimble to take advantage of any market opportunity that arises during the 5 year period.

Something to note when you invest in structured deposits is that you are exposed to the credit risk of Maybank, the issuer and early termination risk as Maybank has the option (but not the obligation) to terminate this product at the end of every year.

However, for those of us who prefer more interest rates certainty, it may not be a bad choice.