China Taiping i-Save Plan 10th Tranche

China Taiping i-Save 1.96 per annum

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.

My Opinion

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.

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