GREAT SP Series 12 is a short term Endowment plan that provide guaranteed returns of 3.50% p.a. at the end of 2 years. Similar to the previous tranche, the minimum amount start from S$10,000. As this is a limited tranche, it is available on a first come first serve basis.
The benefits of GREAT SP 12 Endowment plan are:
- Guaranteed return of 3.5% upon maturity in 2 years.
- 100% capital guaranteed upon maturity.
- Pay using cash or your SRS (Supplementary Retirement Scheme) funds.
- Insurance coverage for Death and Total & Permanent Disability.
One different thing I noticed as compared to the previous GREAT SP Series 11 is the option to receive one time payout or yearly payout.
GREAT SP Series 12 One Time Payout
One-time payout is the inclusion of the additional non-guaranteed accumulation interest at the end of the policy term.
GREAT SP Series 12 Yearly Payout
The yearly payout option will not include the additional non-guaranteed accumulation interest.
What are Endowment Plans?
Again, if you are not familiar with Endowment plans, they 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 12 offers you 3.5% p.a. guaranteed return upon maturity in 2 years.
GREAT SP Series 11 versus Singapore Savings Bond (SBDEC23 GX23120Z)
If you hold and sell the current issue (SBDEC23 GX23120Z) after 2 years, the average return per year is 3.30%.
| Year from issue date | Interest % | Average return per year %* |
| 1 | 3.30 | 3.30 |
| 2 | 3.30 | 3.30 |
Needless to say, GREAT SP Series 12 offers higher returns at 3.5% p.a. as compared to 3.30% p.a. offered by Singapore Savings Bond.
Past GREAT SP Series
Here are the past GREAT SP Series which have been popular.
Summary of GREAT SP Series 12
Below is a summary of the Pros and Cons of GREAT SP Series 12 endowment plan.
Pros
- Short 2-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.