These days, there is a great range of consumer products available in the market from which you can choose a suitable one. However, it’s imperial to have an analysis on what consists of a suitable product. Have a look at your investment objectives and see what investments you have already made, what you can afford to make and your associated risk profile.
Purchase only what you understand fully and be familiar with the product’s risks, benefits, costs and limitations. You can have a look at Investment visa in Singapore options. You should think about diversifying your investment. Moreover, you must consider whether the new product will replace, supplement or complement the existing ones.
Different Types of Investments in Singapore
Conventional Fixed Deposits
Also known as time deposits, these deposits provide higher returns than savings accounts. The rates given on fixed deposits are guaranteed. Deposit themes vary from 1 week to 36 months. If you hold a deposit for longer, you get higher interest rate earnings.
You can choose withdrawing your deposit prior to maturity date. As per the usual industry practice, if your bank deposit has completed “quarters”, you will get lesser interest than contracted originally. In case you withdraw before completing 3 months, you may not get any interest at all.
On top of all, you may have to pay penalty for withdrawing your amount prior to maturity. Therefore, you may end up getting the lesser amount than what you invested initially. In case, foreign currency movements are not favouring you, the amount may decrease more.
Foreign Currency Deposits
These are the deposits which are denominated in some other currency i.e. a currency other than Singaporean Dollar. Some banks of Singapore provide foreign currency deposits in wide variety of currencies.
These are generally available in tenors that range from 7 days to 1 year. These deposits give the potential of getting higher returns than what you can get on conventional deposits. However, these deposits are prone to foreign exchange risk.
Islamic Fixed Deposits
With its availability in Singapore, these deposits comply with Shariah principles, which involves sale of products at a marked-up price. Profits get determined upfront and are paid one calendar day after the cheque clearance or cash placement. Customers, who are more than 55 years or more, can enjoy 0.25% above existing profit rates.
Deposit Insurance Scheme
Deposits which are denominated in Singapore dollars under Supplementary Retirement Scheme get insurance by the Insurance Corporation of Singapore, for an amount up to S$50,000 in total per depositor by law.
Deposits and monies denominated in Singaporean Dollars under CPF Investment and Minimum Sum Scheme are added and separately insured for amount more than S$50,000 for every depositor per Scheme member.
Consider your level of risk, amount of investment and diversification of various investment options and decide a portfolio accordingly. You can check details related to the risk and returns on various options by visiting banks or websites online. Have a safe investment!