The 2025 Investment Day | 2025 Family Office Summits | Family Office Circle
Investment / Alternatives Summit - March / Oct / Nov
Investment Day - March / July / Sept / Oct / Nov
Private Wealth Summit - April / Oct / Nov
Family Office Summit - April / Oct / Nov
View Events | Register
This site is for accredited investors, professional investors, investment managers and financial professionals only. You should have assets around $3 million to $300 million or managing $20 million to $30 billion.
8 Reasons why Clients prefer to place Money in Deposits than Investments
For many Bankers, Wealth Managers and Investment Professionals, they often meet clients who prefer to place money in deposits or fixed deposits.
Placing money in fixed deposit is cumbersome and time-consuming. To get higher deposit rates, one has to constantly track and compare for meagre returns.
- 8 Reasons why building a portfolio is tough in Asia
- What Wealth Managers in Singapore struggle with?
- 8 Reasons why customers don’t understand the value of Wealth Managers
- 7 Secrets how the old rich achieve success with Wealth Managers
Isn’t it easier to invest into a money market fund, government bond or corporate bonds or set up an investment portfolio, get into an insurance savings plan such as endowment or single premium policies?
Caproasia Access | Events | Summits | Register Events | The Financial Centre
The 2025 Investment Day | 2025 Family Office Summits | Family Office Circle
Basic Member: $5 Monthly | $60 Yearly
Newsletter Daily 2 pm (Promo): $20 Monthly | $180 Yearly (FP: $680)
Hong Kong | Singapore
March / July / Sept / Oct / Nov
Private Equity, Hedge Funds, Boutique Funds, Private Markets & more. Join 20+ CIOs & Senior investment team, with > 60% single family offices with $300 million AUM. Taking place in Hong Kong and in Singapore. Every March, July, Sept, Oct & Nov.
Visit | Register here
10th April & 16th Oct Hong Kong Ritz Carlton | 17th April & 6th Nov Singapore Amara Sanctuary Resort
Join 80 single family offices & family office professionals in Hong Kong & Singapore
Links: 2025 Family Office Summit | Register here
March / Oct / Nov in Hong Kong & Singapore
Join leading asset managers, hedge funds, boutique funds, private equity, venture capital & real estate firms in Hong Kong, Singapore & Asia-Pacific at the Investment / Alternatives Summit. Join as delegate, speaker, presenter, partner & sponsor.
Visit | Register here
April / Oct / Nov in Hong Kong & Singapore
Join CEOs, CIOs, Head of Private Banking, Head of Family Offices & Product Heads at The Private Wealth Summit. Join as delegate, speaker, presenter, partner & sponsor.
Visit | Register here
Here, we examine at 8 reasons why clients prefer to place money in deposits than investments:
No. 1 Why not?

Deposits and fixed deposits are the simplest financial instruments to understand. Almost everyone knows how a bank works. Deposit some money, and you get some interest. If you place the funds in a fixed deposit, you get a higher interest rate. You can withdraw the funds almost anytime by paying a small penalty or forgoing some interest earned, depending on the terms and conditions.
In some countries in Asia, there isn’t a need to do investments hoping for 5% returns when the deposit rates are 5.25% in India and in Indonesia, 6.5%.
Example of Fixed Deposit Rates in Asia:
Country | 12 Months Fixed Deposit Rate |
Singapore | 1.8% |
Malaysia | 3.7% |
Indonesia | 6.5% |
Hong Kong | 1.25% |
China | 1.75% |
India | 5.25% |
Selected Rates on 10th February 2016
Related Articles:
No. 2 No Risk. No Fuss

Deposits are great. Clients perceive deposits carry no or little risks. So there isn’t any explanation to do. Although there is the risk of a bank-collapse or bank-run, no one really probe deep into it.
Everyone just assume it is great, safe and sound, except in panic years. In recent memories:
- Year 2008 (Global Financial Crisis)
- Year 1997 (Asian Financial Crisis)
No. 3 Other Source of Income

Majority of the clients don’t rely on investment returns for spending as they generate income from their jobs. Clients assume that they will be income productive for much of their life and when they retire, their retirement funds will always be sufficient, if they save more today.
They go for basic endowment plans (insurance) for savings. And because there isn’t a need for more source of income, there isn’t any urgency to do investments.
At times, the more adventurous move into property investments to generate rental income. A popular move in Asia.
No. 4 Bonds are unlike Bonds

In Asia, there is no major unified bond market. This creates a dysfunctional bond market as retail and individual investors are not able to actively participate, causing problems in price-discovery and debt-raising process.
For clients, this creates a major educational hurdle as they are not given the opportunity to learn about investments by taking the step into the next least risky asset class.
Common Asset Classes:
- Cash Equivalents
- Bonds
- Equities
- Alternative Investments
No. 5 Have Bad Experience in Investments

Most people would have tried their hands at investments at least once in their life. Even if they have not, someone close to them such as their families or friends would had. Some would have horror stories of bankruptcies, divorce, suicide, broken families arising from investments.
The typical stories would be losing money in stocks or Unit Trust, and they swear by never touching those again.
Many never discover what went wrong with their bad experience. They don’t want to talk about it. Placing money in deposits avoid all potential trouble with investments.
No. 6 They had Received Wrong Advice

Another reason why they prefer deposits is they may had received wrong advice from Wealth Managers. It may be true or false, but the important point is, they believed and perceived they had been wrongly advised.
Example of their perceived conclusions:
- High Risk Products that result in loss of money
- Complex Products that result in loss of money
- Products that have long duration or no / less liquidity
- Products that didn’t fit their needs such as regular savings investment or savings plan for a retiree
- Products that have high fees or commissions
To avoid what they perceived as bad advice, deposits would be the best solution.
No. 7 Peace of Mind

Imagine you have $100,000 of assets. And the $100,000 is invested and fluctuating everyday.
Illustration of $100,000 Portfolio:
January | February | March | April |
$107,392 | $92,492 | $101,827 | $72,108 |
Sometimes you are happy, and sometimes you become disappointed as in the months of February and April (above illustration). In these months, there is a substantial change in value.
The difference, you could have paid for a new car downpayment, a nice vacation or dine extravagantly. The thought of counting the loss, just makes your mind goes a little jittery.
For some clients, they just couldn’t deal with the pressure of a fluctuating investment portfolio. They prefer to have less stress and a peace of mind.
No. 8 They Always Need the Money Soon

Having cash on hand is always a safe feeling. There is always something you could do with the money. Everyone wants to keep some cash for big spending items such as downpayment for a house or a car, doing a post-graduate course, going on a long holiday or for emergency use.
People always think they need the money soon. But they almost always never use it. This is great as that is likely how they accumulate more and more money. With the accumulated savings, they have now parked a decent or substantial amount in deposits or fixed deposits.
They have saved well to get there. They just haven’t thought of how to grow it.
Read More: How do you convince a hard-core deposit client to look at wealth management products?
These are 8 reasons why clients prefer to place money in deposits. Anymore?
Related:
- How do you convince a hard-core deposit client to look at wealth management products?
- 8 Reasons why clients prefer to place money in deposits than investments
- 5 Ways to charge the highest fee possible
- 6 Ways to generate high revenue
- How do Wealth Managers compete against Low-Cost Providers?
For Investment Managers, Hedge Funds, Boutique Funds, Private Equity, Venture Capital, Professional Investors, Family Offices, Private Bankers & Advisors, sign up today. Subscribe to Caproasia and receive the latest news, data, insights & reports, events & programs daily at 2 pm.
Join Events & Find Services
Join Investments, Private Wealth, Family Office events in Hong Kong, Singapore, Asia-wide. Find hard-to-find $3 million to $300 million financial & investment services at The Financial Centre | TFC. Find financial, investment, private wealth, family office, real estate, luxury investments, citizenship, law firms & more. List hard-to-find financial & private wealth services.
Have a product launch? Promote a product or service? List your service at The Financial Centre | TFC. Join interviews & editorial and be featured on Caproasia.com or join Investments, Private Wealth, Family Office events. Contact us at angel@caproasia.com or mail@caproasia.com
Caproasia.com | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets?
The 2025 Investment Day | 2025 Family Office Summits | Family Office Circle
2020 List of Private Banks in Hong Kong
2020 List of Private Banks in Singapore
2020 Top 10 Largest Family Office
2020 Top 10 Largest Multi-Family Offices
2020 Report: Hong Kong Private Banks & Asset Mgmt - $4.49 Trillion
2020 Report: Singapore Asset Mgmt - $3.48 Trillion AUM
For Investors | Professionals | Executives
Latest data, reports, insights, news, events & programs
Everyday at 2 pm
Direct to your inbox
Save 2 to 8 hours per week. Organised for success
Register Below
Get Ahead in 60 Seconds. Join 10,000 +
Save 2 to 8 hours weekly. Organised for Success.
Sign Up / Register
Please click on desktop.
Caproasia Users
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2025 Investment Day
- March - Hong Kong
- March - Singapore
- July - Hong Kong
- July - Singapore
- Sept- Hong Kong
- Sept - Singapore
- Oct- Hong Kong
- Nov - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
Contact Us
For Enquiries, Membershipmail@caproasia.com, angel@caproasia.com
For Listing, Subscription
mail@caproasia.com, claire@caproasia.com
For Press Release, send to:
press@caproasia.com
For Events & Webinars
events@caproasia.com
For Media Kit, Advertising, Sponsorships, Partnerships
angel@caproasia.com
For Research, Data, Surveys, Reports
research@caproasia.com
For General Enquiries
mail@caproasia.com
a financial information technology co.
since 2014