Seth’s Blog on Finance

NTUC Income Relaunching Capital Plus

NTUC Income is relaunching Capital Plus on 18^thFebruary 2011, Friday, which is today at the time of writing.

It is a 2-year single premium savings plan with a guaranteed return of 1.4% p.a. The minimum sum required is $10,000 cash or SRS, and the plan is available to all between 16 to 80 years of age.

Application will be closed once the sales allocation is reached or by 15^th March 2011 whichever is earlier.

In my opinion, it may not be a very fantastic deal as certain banks have offered fixed deposits with interest higher than such returns before, notably ICIC Bank. However, as ICIC Bank has recently revised their 24-month fixed deposits rates downwards to 1.05% p.a., Income’s offering might prove to be attractive to the risk averse looking for instruments similar to fixed deposits.

It is worth noting that the also recently announced CapitaMall Trusts bonds issue may be a good avenue to get marginally higher returns at a conservative risk level.