Performance of UOB Structured Deposit – Growth Deposit Series 3

Back on 19 April 2010, I put money into the UOB Structured Deposit called Growth Deposit Series 3. Now after 59 months (nearly 5 years), it matured. I got back my principal sum and a maturity bonus interest of 0.5% on the principal amount. This maturity bonus interest is the minimum I am entitled to and missing out a potential bonus interest of 5%.

Over the 5-year period, I received guaranteed interests as follows:
3% of principal amount at end of Month 3
1% of principal amount at end of Year 2, 3, 4

Together with the bonus interest of 0.5% at maturity, the effective interest rate was 1.3410% per annum. This effective interest rate is quite acceptable because of the low interest rate environment for fixed deposits during these 5 years.

Because it is a structured deposit, the maturity bonus interest is dependent on the performances of 3 share counters over 5 observation dates (over 5 years). The share counters are CapitaLand, SPH and DBS. The worst performing counter was CapitaLand when compared against its initial price of $3.9524 (on 19 April 2010). CapitaLand’s share prices were consistently below $3.9524 at these 5 observation dates. Therefore, investors only get a minimum of 0.5% as maturity bonus interest as a result, missing out of the extra bonus interest.

Copyright © 2015, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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