Maybank in Singapore is offering investors Blue Skies Structured Deposit (SD), a three-year deposit linked to a basket of Singapore blue chips. It is the first time the Malaysian-owned issuer has launched a structured product in Singapore since it offered Inflation Rider 2 SD in September 2008.
The new product will pay 1% pa at the end of each year and at maturity capital is returned in full together with 90% of the rise in the share basket (CapitaLand Limited, DBS, Keppel, Singapore Press and Singapore Telecommunications), capped at 7%.
Interest rates are expected to remain low, with signs pointing to an economic recovery in Singapore, said Maybank's head of consumer banking Helen Neo.
Earlier this month, Singapore's Monetary Authority of Singapore (MAS) lifted bans on structured note sales for Maybank, along with DBS and RBS. The three had been asked 'to rectify weaknesses' identified in the regulator's review of their sales procedures in the wake of the Lehman Brothers collapse. Although the ban did not explicitly include structured deposits, the bank has refrained from issuing such products until now.
The minimum investment is S$10,000 ($7,092), and the offer period runs from today to 30 March.
This product is available now in Recent Additions (Singapore).