Principle, Capital Protected Guranteed, what does it mean?

Some weeks ago because of these saga, I checked on my product which DBS has sold to me some years ago while trying to bank in a deposit.

I was assured because unlike High Notes 5 which is principle "Guaranteed", mine is principle "Protected", meaning mine is protected by DBS and is safe unless DBS goes burst.

In Today's paper, there is another term call "capital" protected and guaranteed. In which it said, capital "protected" is far riskier then capital "guaranteed", it means the when capital is "guaranteed", it is 100% ( by whichever bank), however, capital "protected" is not guaranteed, it could be 80% or less??? And they suggest to go for capital "guaranteed"!

Shit and dammed the jargon. How do you expect the man in the street which goes to the bank to do a simple deposit, hijack them to sell these products understand the risk? Even if I were to read through all the fine prints and with my limited knowledge, I would still be clueless!

Time for MAS has to step in and stop all these products from marketing with depositor's bank.

Otherwise, anyone can be easily caught off guard and persuaded into it.

who ask you so stupid con into doing NS ?

Protected or Guaranteed, bank takes your money and gave them to bond issuer (in exchange for bonds).

The protection comes from the bond. If the bond issuer go bust, so is your investment. Usually no protection if you drop out halfway.

The guarantee comes from the bank that takes the money from your hand. If the bond issuer go bust, the bank absorbs the losses.

Rich banker in US and singapore screw poor people with complex saving scheme.

Mine stated "100 %" guaranteed and bank recently in response to my enquiry confirmed my principle will remain intact on maturity. Remember at time of transaction I wanted no risk to capital amount because otherwise I could invest in stock market myself. Luckily minibonks not introduced yet then. All these silly terms can be very confusing regardless of customers background.

sage said:

Mine stated "100 %" guaranteed and bank recently in response to my enquiry confirmed my principle will remain intact on maturity. Remember at time of transaction I wanted no risk to capital amount because otherwise I could invest in stock market myself. Luckily minibonks not introduced yet then. All these silly terms can be very confusing regardless of customers background.

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You lucky guy. You could have been sucked into minibonds or buying safe buy long term instruments like insurance.

Watch This: http://www.brasschecktv.com/page/187.html

I think that at the way banks are making things more complicated at the expense of people, its not too far away a reality that one may need a banking degree from an overseas university in order to understand the terms fully.

The_Latest_H said:

I think that at the way banks are making things more complicated at the expense of people, its not too far away a reality that one may need a banking degree from an overseas university in order to understand the terms fully.

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Yeah, totally agreed. The RMs or bankers that sell you those financial products are really more interested to derive maximum commissions from your purchase. A good financial advisor is one that not only helps you to make money in good times but also lock in the value of your investments in bad times.

Like my late-grandma said, "Straightforward money growing scheme is still the best. FD will never go wrong." She was getting 3 - 4 % return annually on her FD 15 or 20 yrs ago, pretty good. In the long run, with compounding, her savings grow 2 - 3% annually for a period of 15 yrs. That's fair return compared to ppl who might have lost 50% - 70% of their savings for the last few decades because of "financial events".

Protection and guarantee are nice words. Can u guarantee the bank will not bust? Look at how many US banks now bust? How much more assets did they have b4 going under? How large is UOB OUB and DBS?

Bigfuck said:

Protection and guarantee are nice words. Can u guarantee the bank will not bust? Look at how many US banks now bust? How much more assets did they have b4 going under? How large is UOB OUB and DBS?

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馬後炮, who don't know.

Zombie said:

馬後炮, who don't know.

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But will PAP 马前炮？

Bigfuck said:

But will PAP 马前炮？

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Like that, no horse run.

Zombie said:

Like that, no horse run.

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Use car loh. No old Cheena 3 kingdom days. Maybe mentality 3 kingdom but...

VeryWise said:

Yeah, totally agreed. The RMs or bankers that sell you those financial products are really more interested to derive maximum commissions from your purchase. A good financial advisor is one that not only helps you to make money in good times but also lock in the value of your investments in bad times.

Like my late-grandma said, "Straightforward money growing scheme is still the best. FD will never go wrong." She was getting 3 - 4 % return annually on her FD 15 or 20 yrs ago, pretty good. In the long run, with compounding, her savings grow 2 - 3% annually for a period of 15 yrs. That's fair return compared to ppl who might have lost 50% - 70% of their savings for the last few decades because of "financial events".

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Do you think that action should be taken against the sellers of such products?

jw5 said:

Do you think that action should be taken against the sellers of such products?

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Oh dear, dear. Please be careful of your words. Words have meaning. There are consequences. I must advise you to be mindful of what you are suggesting. I am currently on holiday and other work assignments. I am shocked to see the kind of misinformation going on while I was away. I must bring the truth to Singaporeans when I return.

DIVISION1 said:

Oh dear, dear. Please be careful of your words. Words have meaning. There are consequences. I must advise you to be mindful of what you are suggesting. I am currently on holiday and other work assignments. I am shocked to see the kind of misinformation going on while I was away. I must bring the truth to Singaporeans when I return.

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How cum you so fast cum back from Tanjong Palai already ah ??

jw5 said:

Do you think that action should be taken against the sellers of such products?

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Seriously I do not think it will help. Of course, if we have every reason to believe that the sellers actually misrepresent and sell products for their own benefits, we should sanction them. However, I would reckon that it will be very difficult to prove. In any case, I am quite happy to see that the banks are willing to repay the money for the "vulnerable" group, which I think deserve to have their money back. How would a 60+, 70 ah ma knows anything about derivatives, bonds or shares.