HSBC Launches SecureIncome Savings Plans

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HSBC has just introduced the SecureIncome savings plans with "guaranteed" returns. Are these just another run-of-the-mill annuity or insurance savings plans?

The SecureIncome plans are akin to a monthly premium saving and insurance scheme, as opposed to Aviva's SecurePlus Plan, which is a single-premium plan.

Basic features:

Returns:

The scheme yields 1 to 1.5% annually, depending on whether one chooses "SecureIncome 10" or "SecureIncome 55".

Risk:

The scheme is guaranteed by HSBC Insurance.

How it compares:

The SecureIncome plans have a long tenure (20 years for the "SecureIncome 10") compared to Aviva's SecurePlus Plan and yet have a similar or lower yield than the latter.

Conclusion:

The SecureIncome plans have very unattractive yields and there is probably no good reason to buy into such plans. And yes, each of these products is just another run-of-the-mill insurance savings plans, albeit a most uncompelling one.


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Last Updated ( Monday, 23 August 2010 14:55 )