Best Endowment Plans In August 2020

Financial Planning

Are you looking for the best Endowment Plans in August 2020 to earn a higher interest rate than fixed deposits? Endowment plans are life insurance saving plans that are offered by insurance companies. The aim is to help policyholders save towards specific financial goals. Policy holders can contribute a regular amount for a designated period of time or pay a lump sum upfront at the start of the policy.

Upon maturity of the policy, you will be given a lump sum payout with the guaranteed return. It is best to study the plan carefully as certain endowment plans offers non-guaranteed returns.

Last month, I have shared 3 short term Endowment plans which are the NTUC Gro Capital Ease, Tiq 3-Year Endowment Plan and China Taiping i-Save Plan. Both the NTUC Gro Capital Ease and China Taiping i-Save Plan have been fully subscribed. Thus you have to wait for the launch of the next tranche.

This month, we are only left with one option. This is the Tiq 3-Year Endowment Plan that offers you 1.88% per annum for 3 years.

Tiq 3-Year Endowment Plan

Interest Rate (p.a.): 1.88%, Minimum Investment: S$10,000, Maturity Period: 3 years, Payment Mode: cash only

Etiqa is owned by Maybank Ageas Holdings Berhad, a joint venture company that combines local market knowledge with international insurance expertise. The company is 69% owned by Maybank and 31% by Ageas, an international insurance group.

Etiqa offers the Tiq 3-Year endowment plan. The interest rate has been reduced from 2.10% p.a. in July 2020 to the current 1.88% (August 2020).

Based on S$10,000 placed in Tiq 3-Year Endowment Plan at an interest rate of 1.88% p.a., you will receive a guaranteed payout of S$574 upon maturity of the policy.

3 Year Tiq Endowment August 2020

Summary

Here is a summary at a glance of the best endowment plans that I have found in August 2020.

NTUC Income Gro Capital EaseChina Taiping i-SaveTiq 3-Year Endowment
Maturity period2 years3 years3 years
Minimum investmentS$5,000S$30,000S$10,000
Interest rate per annum1.85%2.05%1.88%
Payment modeCash and SRSCash onlyCash only
Subscription StatusFully subscribedFully subscribedStill available

SBSEP20 GX20090H is 0.88%

Singapore Savings Bonds SBSEP20 GX20090H

The effective interest rate for September 2020 Singapore Savings Bonds (SBSEP20 GX20090H) is 0.88% if you held it for 10 years. The COVID-19 pandemic that started in March 2020 had caused the interest rates to fall dramatically across fixed deposits and savings accounts.

The minimum amount you can purchase is S$500. If you decide to hold and sell the current issue (SBSEP20 GX20090H) after 1 year, the effective interest rate is 0.24%.

Singapore Savings Bonds Alternatives

I wouldn’t put my money into the Singapore Savings Bonds as the interest rate is simply too low. Fortunately, there are alternative financial instruments out there that offer higher interest rates. They are short term endowment plans such as NTUC Income Gro Capital Ease, Tiq 3 Year Endowment Plan and China Taiping i-Save. You can read more about them in Best Endowment Plans In July 2020.

If the lock in period for Endowment Plans is a concern for you, you can check out Dash EasyEarn or the Singlife Account. Last month, I have signed up for Dash EasyEarn that offers you an attractive interest rate of 2% p.a. for the first year and 1.5% p.a. for subsequent years. Similar to Singlife Account, there is no lock in period, no monthly fees and you can withdraw your money anytime. Signing up takes less than 10 minutes!

Tracking Singapore Savings Bonds via Stocks Café

My favorite website, Stocks Café has allows adding of Singapore Savings Bonds into your portfolio. If you didn’t know, I signed up as a Friend of Stocks Café as my most favorite feature of Stocks Café is the automated tracking of dividends payout.

This is the third year that I continue to use Stocks Café to track my dividends.

Tracking Singapore Savings Bonds via My Savings Bonds Portal

MAS has launched My Savings Bonds Portal where you can track your Singapore Savings Bonds purchases separately from your stock purchases. I have done up a simple guide here. (Read more: Guide to My Savings Bonds Portal)