WITH the current turmoil in the financial industry, we have to be vigilant about how we invest our money.

Ultimately, it boils down to our risk appetite.

Most forms of investment carry risk. Instruments like stocks and shares yield high returns, but are accompanied by high risk. Conversely, low-risk instruments have low returns.

Can fixed deposits be considered investments? I don't think so. Many put their savings in fixed deposits merely for safekeeping. Under the Deposit Insurance Scheme, bank deposits are insured up to the sum of $20,000.

The question is: Why only $20,000 and not the full amount?

Not everyone is investment- savvy, especially when it comes to high-risk instruments.

Therefore, fixed deposits ought to be a safe bet, and should give depositors peace of mind.

But if money in fixed deposits cannot be 100-per-cent protected, maybe we have to resort to the old-fashioned method of hiding money under our pillow.

With full protection, it would definitely boost the confidence of Singaporeans and foreign investors, who would see Singapore as a a safe haven for investments, where financial well-being is safeguarded.

Mr Yee Wing Sun

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