China Taiping i-Save Plan 10th Tranche offers you a guaranteed return of 1.96% per annum for 3 years. The previous tranche in April 2020 which offers you 2.18% p.a. was fully subscribed within a month. With falling interest rates across other financial products such as Singapore Saving Bonds, fixed deposits and saving accounts, I can see why Singaporeans are snatching these limited tranche endowment plans quickly.
What are Endowment Plans?
Endowment plans such as China Taiping i-Save 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.
In this case, China Taiping i-Save Plan is a single premium, non-participating life insurance savings plan offered by China Taiping Insurance (Singapore) Pte Ltd that gives you a lump sum payout with guaranteed return of 1.96% per annum over 3 years.
The maximum investment amount is S$100,000 which gives you a return of S$6,000 at the end of policy maturity.
In my opinion, this is a low risk investment as compared to stocks and bonds. If your heart cannot take it or you cannot sleep because the stock market has crashed due to COVID-19, China Taiping i-Save Plan is something that you can look at for a short term investment.
Last month, I have shared about NTUC Gro Capital Ease which similarly offers 1.96% p.a. over 3 years but it has been fully subscribed. Thus you may wish to consider this.
Disclaimer: This is not a sponsored post and solely the author’s opinion.