NTUC Income Gro Capital Ease is a single premium savings plan that gives you a lump sum payout with guaranteed return of 1.85% per annum over 2 years. You will receive the lump sum payout at the end of the policy term.
Similar to NTUC Capital Plus offered in the previous tranche, the minimum amount for Gro Capital Ease is only S$5,000 per policy which you can pay using cash or using your Supplementary Retirement Scheme (SRS) fund. The maximum amount allowed per policy is S$200,000.
As this is in fact an endowment plan, it comes with insurance benefits. In the event of death or total and permanent disability (before age 70), you will receive the net single premium (Within 1 year from the cover start date) or 105% of the net single premium (After 1 year from the cover start date)
How Does This Plan Fare Against Singapore Savings Bonds?
NTUC Income Gro Capital Ease offers you an interest rate of 1.85% per annum over 2 years. Below is the interest rate for July 2020 issue of Singapore Savings Bonds. The interest rate is 0.30% for year 1 and 2.
Needless to say, NTUC Income Gro Capital Ease is the clear winner against the Singapore Savings Bonds.
How Does The Endowment Plan Fare Against Fixed Deposits?
The best two fixed deposits which I have found this month is from DBS and Maybank.
For a 12 months placement on amounts from S$1,000 to S$49,999 with DBS Bank, you get an interest rate of 1.40% per annum.
The Maybank iSAVvy Time Deposit offers an interest rate of 1.40% per annum for a minimum placement of S$25,000 over 2 years.
NTUC Income Gro Capita Ease is still the clear winner here if we compare the interest rate with the interest rates offered by current fixed deposits promotions.
My Opinion
This is the only endowment plan that I am aware of that allows you to buy using your Supplementary Retirement Scheme funds. With falling interest rates by Singapore Savings Bonds and fixed deposits, this is the current most attractive plan around to grow your money with low risks involved.
NTUC Income Gro Capital Ease is available on a limited tranche and first-come-first-serve basis, so for those that are interested, please visit NTUC Incomes website to sign up.