Monday, September 15, 2008

NTUC Thrift

I have read about NTUC thrift account before but I never really pay too much attention to it. But today a regular visitor of this blog Cukcuk, alerted me to look further into it.

I find their saving account currently giving out good interest at 2% per annum. While SIBOR is low and money market funds giving out lower interests, I am surprised NTUC Thrift can still give 2% per annum.

The last saving account that I have was Citibank Step-Up account which I managed to step-up till 2%. That account I need to wait patiently for 1 year to step up the interest rate but Thrift account starts off from 2% instead.

I read the FAQ section but did not manage to settle a few questions. Below are some questions which I wrote to NTUC Thrift.

Letter to NTUC Thrift

1) May I know the historical yield of dividend payout for Subscription Capital Account?

2) Is the money in the Subscription Capital Account capital guaranteed?

3) I understand full redemption of Subscription Capital is allowed only upon cessation of membership. Which membership is this? Is it The NTUC union membership or thrift membership?


Reply from NTUC Thrift
Dear Mr. Mike,

Thank you for your feedback.

The past few years dividend payout is as follow:

Yr Mar 2002/Apr 2003 - 2%
Yr Mar 2003/Apr 2004 - 0.5%
Yr Mar 2004/Apr 2005 - 4%
Yr Mar 2005/Apr 2006 - 5%
Yr Mar 2006/Apr 2007 - 5%
Yr Mar 2007/Apr 2008 - 0%

The money in Subscription Capital A/c is principal protected. If Thrift is not doing well, we are not required to have any dividend payout. For example, the financial year that just ended has no dividend payout because of "paper loss" Thrift suffered.

For every member, they need to open Subcription Capital A/c with a min deposit of $20. This $20 is refundable when a member cease membership with Thrift.

In case if you are not aware, you need to make a one time payment of $20 to NTUC Thrift when opening a Thrift membership. This money is so called your membership fee which will be contributed to your Subscription Capital account. You can potentially earn dividend payout from that account. You may deposit more funds into this capital account if you wish to.

If you don’t wish to contribute more into the capital account, you may make use of NTUC Thrift saving account, fixed deposits and loans to enjoy attractive rates.

1 comment:

Mike Dirnt said...

Dear Mr. Mike,

For withdrawal, you can either come over to our office or write in to request for a cheque to be sent to you. There is no minimum withdrawal amount.

To deposit into your Subcription Account, you can either come down to our office to deposit cash or cheque. Alternatively, you can send in a cheque and at the back of the cheque, write down your Name, NRIC no. and your contact number and write "Top up Subscription Account". That will do. You may also like to do a monthly giro contribution into Subscription Account.

Please contact me if you need further clarification.