GREAT SP Series 11 is a short term Endowment plan that provide guaranteed returns of 3.50% p.a. at the end of 1 year. As this is a limited tranche, it is available on a first come first serve basis.
The benefits of GREAT SP 11 Endowment plan are:
- Guaranteed return of 3.5% and 100% capital guaranteed upon maturity.
- Short-term commitment of just 1 year.
- Pay using cash or your SRS (Supplementary Retirement Scheme) funds.
- Insurance coverage for Death and Total & Permanent Disability.
What are Endowment Plans?
Endowment plans are life insurance saving plans 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, GREAT SP Series 11 offers you 3.5% p.a. guaranteed return upon maturity.
How GREAT SP 11 Works?
Below is a pictorial illustration on how GREAT SP Series 11 works.
Just for illustration, if you pay a single premium of S$100,000, you will receive a total guaranteed payout of S$103,500 (S$100,000 + S$3,500) after the end of 1 year policy term.
GREAT SP Series 11 versus Singapore Savings Bond (SBJUL23 GX23070H)
If you hold and sell the current issue (SBJUL23 GX23070H) after 1 year, the effective interest rate is 2.76%.
| Year from issue date | Interest % | Average return per year %* |
| 1 | 2.76 | 2.76 |
Needless to say, GREAT SP Series 11 offers higher returns at 3.5% p.a. as compared to 2.76% p.a. offered by Singapore Savings Bond.
GREAT SP Series 11 versus Gro Capita Ease June 2023
In June, I have bought Gro Capita Ease using my SRS funds. Gro Capital Ease launched in June 2023 is offering a guaranteed yield at maturity of 3.55% per annum at the end of the 3 year policy term.
This may not be an apple to apple comparison because Gro Capita Ease maturity period is 3 years while GREAT SP 11 is 1 year. If you can afford to lock in your funds for 3 years, then go for Gro Capita Ease at 3.55% p.a.
If you cannot afford to lock your funds for 3 years, then go for GREAT SP 11 at slightly 0.05% lower return at 3.50% p.a. which only require you to lock in your funds for 1 year.
Past GREAT SP Series
Just for reference, here are the past GREAT SP Series which have been popular.
Summary of GREAT SP Series 11
Below is a summary of the Pros and Cons of GREAT SP Series 11 endowment plan.
Pros
- Short 1-year commitment.
- 100% capital guaranteed after 1 year.
- High interest rates at 3.50% p.a.
- Pay using cash or Supplementary Retirement Scheme (SRS) funds.
- Comes with insurance coverage for death and total and permanent disability.
Cons
- Minimum starts at S$10,000. Personally, I felt that this is slightly high.
You can either buy it directly from Great Eastern Life’s website or via OCBC Bank’s website.
Disclaimer: This is Not a sponsored post and the opinions are solely based on My Sweet Retirement’s opinion.