Singlife Account is an insurance savings plan that was launched in November 2019. There are no monthly fees, no regular top ups required and no lock in period. The best thing I like about the Singlife Account is that it delivers a return of 2.5% per annum for the first S$10,000 deposited. This return rate of 2.5% per annum is not guaranteed and may change in the future. The next S$90,000 earns you 1% per annum. Anything above S$100,000 does not earn you any return.
| Returns | Account Value |
| 0 % | Above S$100,000 |
| 1% p.a. | Next S$90,000 |
| 2.5% p.a. | First S$10,000 |
There is a minimum deposit of S$500 to get started and you need to maintain a minimum balance of S$100 to enjoy the benefits of the Singlife Account. There are no fall below fees if your balance falls below S$100.
You might be wondering how is it possible for the balance to fall below S$100? Unlike other insurance savings plan, this is the first insurance savings plan that comes with a debit card that allows you to perform card transactions. You can also make cash withdrawals by performing FAST transfer from your Singlife Account to your personal bank account.
Insurance Benefits
The Singlife Account comes two insurance benefits which are Death benefit and Retrenchment benefit.
Death benefit
In the event of death or terminal illness, you are paid up to 105% of your account value.
| In the event of Death | Death Benefit |
| Before the Policy Anniversary on which Life Assured’s age last birthday is 61 | The sum of:
|
| On or after the Policy Anniversary on which Life Assured’s age last birthday is 61 | The sum of:
|
Retrenchment Benefit
If you are retrenched after the first 6 months of account opening and remains unemployed for 4 months, you will receive a payout of up to S$10,000 over the next 3 months.
There is a catch to this though and I suggest you read the terms and conditions carefully. The payout amount of the retrenchment benefit is dependent on the card spending that you perform over 6 months before retrenchment.
For example, if your average card spend is S$1,000 over 6 months before retrenchment, your retrenchment benefit will be S$1,000 x 3 = S$3000 paid over 3 months after being unemployed for 4 months.
How to Sign Up?
Signing up for a Singlife Account is easy and you can do it with ease at home with just your phone. Just download the Singlife application from Apple App Store. Top up can be done via FAST transfer.
Summary
As Singlife Account is a new and different insurance product, I am skeptical like you about the protection of my savings placed with them.
Fortunately, The Singlife Account is protected up to specified limits by the Singapore Deposit Insurance Corporation. Singlife is also licensed by the Monetary Authority of Singapore (MAS).
Thus, I have signed up for a Singlife Account but will cap my deposits to S$10,000.
My reasons for signing up:
- No monthly fees, no lock in period and no fall below fees if balance falls below S$100
- Higher return of 2.5% per annum for S$10,000 placed which beats the current interest rate offered by Singapore Savings Bond and savings accounts.
The insurance benefits does not appeal to me as I already have my own insurance that provides a much higher coverage.
Thank you for the info.