The key objective of the STSS is to provide members with an opportunity to earn more regular and consistent returns on the monies presently standing in their Subscription Capital Account (“SCA”). 

 

For eligible members who qualify to participate in this first three-year term of the STSS (“Series 1”) and confirm participation by 2 December 2011, money withdrawn from members’ SCA for participation in the STSS will earn interest of 4% per annum on the principal sum deposited in the STSS.  To celebrate the Society’s 85th anniversary, a bonus rate of 4.85% per annum will be paid on the principal sum which would be deemed to have been deposited for the period 1 January 2011 to 31 October 2011.  Participation in the STSS is subject to the attached Administrative Rules Governing the STSS.  Please read the Rules carefully as they govern your participation in and implementation of the STSS.

 

Other salient features of the STSS are as follows:

a)     $2,000 must be retained in the SCA;

b)    The principal sum withdrawn from the SCA to be deposited in the STSS cannot be transferred back to the SCA; and

c)     If there is any early withdrawal of the principal sum from the STSS, the interest earned will be less than 4% per annum.

 

Quantum

A member would be free to choose how much funds he/she would like to transfer from his/her Subscription Capital Account (“SCA”) to the STSS, subject to the minimum sum of $2,000.00 to be retained in his/her SCA. Any amount transferred out of the SCA into the STSS cannot be transferred back to the SCA. Participation in the STSS does not affect a member's monthly obligations to contribute to his SCA.

 

Term

      i.        The initial duration (“Series 1”) for a member's funds to remain in the STSS is 3 years. At the end of 3 years the member will be at liberty to withdraw the principal sum deposited into the STSS. Alternatively, the member may wish to continue with his participation in the STSS if it is extended for another term.

 

     ii.        In the event that the STSS is extended for subsequent terms, an invitation letter will be sent to members 6 months before the expiry date for them to participate in the new terms. Members can opt to:

1)     “Roll over” the whole principal by utilising it as principal for the new term; or

2)     Withdraw the full principal.

 

The Society reserves the right to send such invitation letters to eligible members with different terms and conditions.


 

Return

      i.        If a member confirms participation in Series 1 by 2 December 2011, the member will earn a one-off return at a bonus interest rate of 4.85% per annum (to celebrate the Society’s 85th anniversary in 2011) to be paid on the principal sum which would be deemed to have been deposited for the period 1 January 2011 to 31 October 2011. The interest will be credited into the member’s bank account on 22 December 2011.

 

     ii.        A return of 4% per annum would be paid on the principal sum deposited for Series 1 for the period from 1 November 2011 to 31 October 2014. Interest accrued would be paid to the member every 6 months based on day count fraction of (actual number of days)/(number of total calendar days in the year). 

 

Early Withdrawal by Member

      i.        In the event of an early withdrawal from the STSS by a member before the maturity of term, the following interest rates, instead of the interest rate return set out above, will apply on the principal sum deposited:

 

Less than 6 months

  6 months to less than 12 months

12 months to less than 18 months

18 months to less than 24 months

24 months to less than 30 months

30 months to less than 36 months

0.50% per annum

1.00% per annum

1.50% per annum

2.00% per annum

2.50% per annum

3.50% per annum

 

     ii.        In the event that the STSS is extended for subsequent terms, the applicable interest rate payable for any early withdrawal shall be determined by the Board.

 

    iii.        For early withdrawals by a member, there will be a pro-rata claw-back of the interest paid out with corresponding deduction made to the principal sum that would be repaid to the member.

 

For example, if the early withdrawal is done on the 19th month, there will be a claw-back of interest of 2% per annum for the first 18 months, which will be deducted from the principal.

 

Interest for the remaining period will be based on day count fraction calculated up to the day before the money is in the member’s bank account.

 

    iv.        If a member wishes to make an early withdrawal, only a withdrawal of the entire principal sum deposited in the STSS is permitted.  No partial withdrawal of the principal sum is allowed.

 

     v.        Forms will be furnished by the Society for any withdrawals by members.

 

Collateral

The deposit under STSS may be used as collateral to apply for a secured loan from the Society.

 

Terms & Conditions:

 

1.         Every member who meets the following criteria shall be permitted to participate in the STSS:

 

(a)           The member has a minimum balance of $2,000 in his Subscription Capital Account (SCA) as at 31 October 2011 or as at such date the Board may specify from time to time; and

 

(b)           The member does not have any outstanding unpaid loans to the Society.

 

2.         For the first three (3) year term of the STSS (“Series 1”), the Board shall administer and members shall participate in the STSS in accordance with the rules set out in the attached Annex A.  For any subsequent terms of the STSS, the Board shall be permitted to administer and members shall participate in the STSS in accordance with any rules the Board may approve and implement from time to time.

 

3.         For a member who satisfies the above eligibility criteria and wishes to participate in the STSS, the withdrawal from the member’s SCA for participation in the STSS shall be made pursuant to the provisions of the Subscription Capital Scheme (SCS).

 

4.         In the event the STSS is terminated by the Society, the principal sum belonging to each member shall be, at the option of the member:

 

(a)           Returned to the member; or

(b)           Used by the member to participate in any scheme that the Board may approve and implement from time to time.

 

5.         These Administrative Rules Governing the STSS shall not amend or affect the implementation of the Administrative Rules Governing the SCS.

 

 

 



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