Business News of Friday, 30 March 2007
Accra, March 30, GNA - Fidelity Bank on Friday launched a new investment product that would enable individuals and groups of persons to switch over from a pro-expenditure lifestyle to a wealth creation lifestyle.
The product, called Fidelity Lifestyle Investment Plan (FLIP) account, comes with automatic credit line attached to the investment in which loans could be taken in the event of liquidity crunches at any time.
Its account also guarantees 91-day treasury bill yield and has a capital accumulation plan which encourages accumulation of wealth through a consistent monthly contribution of 500,000 cedis. Mr. Jim Baiden, Deputy Managing Director of the Bank, at a press launch of FLIP in Accra, said the product was unique since it was the first of its kind in the banking sector. He said within three months of contribution, one was qualified to sign up for equivalent of 80 per cent of the FLIP balance as loan within an hour.
Mr Baiden explained that once an individual joined the FLIP account, his investment became in tact but the client could be offered any form of assistance by the bank with repayment spread over a period of up 36 months.
"A minimum of 500,000 cedis contribution each month is required for one to sign up for FLIP account with free investment advisory services rendered for individuals to plan expenditure pattern that will improve lifestyle and status," he added.
Mr Baiden noted that the account did not attract any charge. However, when the investment was broken before the planned investment period, it attracted a charge calculated at the prevailing 91-day treasury bill yields minus four per cent, to deter people from interfering with their investment portfolio. He said FLIP account was designed to ensure safety of investment from the market volatilities thus tied to the 91-day treasury bill yield.
Mr Baiden indicated that most people only waited to spend their salaries at the end of the month but with FLIP they would have access to money at anytime and therefore called on the public to patronise this groundbreaking effort. 30 March 07