Looking for the best Endowment Plans in July 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 give a lump sum payout with the guaranteed return. It is best to study the plan carefully as certain endowment plans offers non-guaranteed returns.
The Federal Reserve interest rate was cut by half a percentage point in March 2020. This has caused the Singapore Interbank Offered Rate (SIBOR) to start dipping. As such, the fixed deposit interest rates had fallen to non-attractive levels. Thus, we should consider alternative financial instruments that can offer us better returns over a short fixed time duration.
Below are the best single premium, non-participating life insurance savings plan that I have found to provide you with a guaranteed return over the time period in July 2020.
NTUC Income Gro Capital Ease
Interest Rate (p.a.): 1.85%, Minimum Investment: S$5,000, Maturity Period: 2 years, Payment Mode: cash and SRS (Supplementary Retirement Scheme)
NTUC Income Gro Capital Ease is a single premium savings plan that gives you a lump sum payout with guaranteed return of 1.85% per annum over 2 years. You will receive the lump sum payout at the end of the policy term.
Similar to NTUC Capital Plus offered in the previous tranche, the minimum amount for Gro Capital Ease is only S$5,000 per policy which you can pay using cash or using your Supplementary Retirement Scheme (SRS) fund. The maximum amount allowed per policy is S$200,000.
Gro Capital Ease is on a limited tranche and first come, first served basis.
Tiq 3-Year Endowment Plan
Interest Rate (p.a.): 2.10%, 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. Based on S$10,000 placed in Tiq 3-Year Endowment Plan at an interest rate of 2.10% p.a., you will receive a guaranteed payout of S$623 upon maturity of the policy.
China Taiping i-Save Plan (Fully Subscribed)
Interest Rate (p.a.): 2.05%, Minimum Investment: S$30,000, Maturity Period: 3 years, Payment Mode: cash only
At the point of writing, China Taiping i-Save has been fully subscribed as it is a limited tranche.
China Taiping Insurance (Singapore) Pte Ltd is wholly-owned by China Taiping Insurance Holdings Company Limited. Since 2000, the company has been listed on the Hong Kong Stock Exchange, making it the first Chinese funded insurer listed overseas.
China Taiping Insurance (Singapore) Pte Ltd offers the China Taiping i-Save Plan. Based on S$100,000 placed in China Taiping i-Save Endowment Plan at an interest rate of 2.05% p.a., you will receive a guaranteed payout of S$6,280 upon maturity of the policy.
Here is a summary at a glance of the best endowment plans that I have found in July 2020.
|NTUC Income Gro Capital Ease||China Taiping i-Save||Tiq 3-Year Endowment|
|Maturity period||2 years||3 years||3 years|
|Interest rate per annum||1.85%||2.05%||2.10%|
|Payment mode||Cash and SRS||Cash only||Cash only|