Question 2

Ho is now saving his money HK$2000 per month in a regular savings account of HSBC which offers him interest rate of 4%p.a. compound monthly.

A bank teller suggest him to setup a monthly saving plan. The details are as follow

Maturity of 5 years

Fixed interest rate 8%p.a. compound quarterly

A handling fee equivalent to 2% of the total investment amount for early withdrawal

If he needs to use the money 4 years from now, should he take the offer?