Worry for heartlander uncles and aunties

Today’s news of a bank ‘relaunching’ its acquired subsidiary made me frown. The reason being that acquired bank used to be ‘the people’s bank’. Many heartlander have their saving accounts with this subsidiary. What made me frown and use the word ‘used to be’ is my personal experience with the bank sometime last year.

I wanted to enquire about a certain saving program (not insurance) this bank carry and approached their branch at Tampines Central. The frontline staff was friendly and courteous. On hearing my enquiry, the staff did a brief explanation and pointed out that the interest is low. She then said that there is another product which offers a higher return. She then directed me to an financial consultant. I roughly knew what they were trying to promote, but being free that day, I just decided to let them answer my suspision.

As it turns out, my hunch was right, they were trying to promote an Investmetn-Linked-Plan (ILP). The ‘explaination’ made the ILP sounds like a must have! The consultant even said that the projected 5% and 9% return was set by the government and the they do not set the figures without reason! Well, she is right, the figures are set for illustration purpose only!

Why did they try to sell me an ILP when all I wanted fo know was a conservative short term savings program? Why didn’t the consultant show me the insurnace charges which is a big factor for ILP? Why didn’t she highlight that the returns are not guaranteed and quote that they were set by the government?

The experience made me lose my confidence in that bank. And the news of the ‘relaunch’ made me worried. With so many heartlander uncle and aunties with them, I really wonder what will happen. Hopefully, my experience is a one off thing and is not common.

No related posts.