My banker friend drop by at the house the other day. As usual, she would promote the various plans the bank has. And in this instance, she was promoting a fixed deposit plan for our children. The time duration for the FD to mature is 4 years and we are not supposed to take out the money within that period. The interest rate is only 3.5% per year.
Well, the plan is attractive because our children do have some money inside their saving accounts. Then, we calculated it against the gold savings plan. We estimated that the gold price will continue it upward trend for the next four years and the increase is definitely more than 3.5%. Well, it might go up as high as 60% for the next 4 years. Without much of a fight, the gold wins. So the next day we went to UOB to buy gold. Looks like the children will have higher returns for their money.
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