Thursday, September 4, 2008

Maybank inflation rider structured deposit

As much as possible I try to stay far far away from structured deposit. This time I came across a structured deposit from Maybank which warrants a good consideration. It is called Inflation-Rider Structured Deposit.

I find the terms very simple to understand. The most basic rule of investment is NOT to invest in anything that you don’t understand. Now let us see what the benefits of this structured deposit are.

According to the website, the structured deposit is capital guaranteed. Thus you are assured to get back your principal at the end of the term. It is a short term investment that requires to be locked in for 21 months and the minimum payout is at 0.9% of your capital. It means if you were to put $10,000 then the payout at the end of the term can potentially be higher than $10,090 which works out to be at least 0.51% per annum.

Now on the upside, you are able to earn a maximum payout of 17.5%. Based on the $10,000 amount again, then your payout can potentially be $11,750 which works out to be 10% per annum.

Even though I really got no idea of how the money is invested as there is no information from the website, I consider this structured deposit to be low risk but gives the potential of earning higher returns. The key point in this structured deposit is the guarantee of capital.

Since the investment period is short, you can consider it as a 21-month fixed deposit with 0.51% returns per annum. Anything above is considered a bonus to you. Before putting your money in, it is good to check with Maybank to find out how your money is invested.

1 comment:

Mike Dirnt said...

i know the offer is closed for this Structured Deposit, but let me close something that i wasnt sure earlier.

according to media, the underlying is a diversified basket of commodities. you can read more from the following link:

a very good source of reading to understand what structured deposit is all about from moneysense: