I received an email on 5th August 2022 from Income. Gro Capital Ease is offering a guaranteed return of 2.81% per annum for their 3-year single premium insurance savings plan.
If you have not heard of Gro Capital Ease, it is a single premium endowment plan that gives you a maturity benefit of 108.67% after 3 years with a guaranteed return of 2.81% p.a.
Similar to past tranches, this plan is available on a limited tranche & first come, first served basis only.
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.
Gro Capital Ease August 2022
Here is an illustration on how it works.
The minimum single premium for online purchase starts from $10,000. You may also choose to purchase through a financial advisor representative with a minimum single premium of $20,000. The maximum single premium limit for each insured is $200,000.
Gro Capital Ease Eco Versus Best Fixed Deposit Promotion In July
In July, I just placed a 18 months fixed deposit with CIMB at a interest rate of 2.25% p.a.
If you can afford to lock away your monies for 3 years, then Gro Capital Ease Eco is a better deal given that it offers you 2.81% p.a.
Gro Capital Ease Eco Versus Singapore Savings Bonds (SBSEP22 GX22090Z)
If you hold the latest issue of the Singapore Savings Bonds (SBSEP22 GX22090Z) for 3 years, the average return per year is 2.68%.
Gro Capital Ease is the clear winner here at 2.86% p.a.
| Year from issue date | Interest % | Average return per year %* |
| 1 | 2.63 | 2.63 |
| 2 | 2.71 | 2.71 |
| 3 | 2.71 | 2.68 |
Are Investments in Endowments Safe?
No investments are risk free. I will suggest you to read the policy terms and conditions carefully prior to investing in anything.
Personally, I have already bought many of the previous tranches of NTUC Income’s Endowment Plans given the company’s good reputation.
The policy is also protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC).
Summary of Gro Capital Ease August 2022
If you can afford to lock in your money for 3 years, Gro Capital Ease is the clear winner here against Singapore Savings Bond and Fixed Deposits.
If you are looking at the flexibility of withdrawal you cash at anytime, then go for Singapore Savings Bonds whereby there is no lock in period and you can redeem anytime.