Best Endowment Plans In August 2020

Financial Planning

Are you looking for the best Endowment Plans in August 2020 to earn a higher interest rate than fixed deposits? Endowment plans are life insurance saving plans that are 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.

Last month, I have shared 3 short term Endowment plans which are the NTUC Gro Capital Ease, Tiq 3-Year Endowment Plan and China Taiping i-Save Plan. Both the NTUC Gro Capital Ease and China Taiping i-Save Plan have been fully subscribed. Thus you have to wait for the launch of the next tranche.

This month, we are only left with one option. This is the Tiq 3-Year Endowment Plan that offers you 1.88% per annum for 3 years.

Tiq 3-Year Endowment Plan

Interest Rate (p.a.): 1.88%, Minimum Investment: S$10,000, Maturity Period: 3 years, Payment Mode: cash only

Etiqa is owned by Maybank Ageas Holdings Berhad, a joint venture company that combines local market knowledge with international insurance expertise. The company is 69% owned by Maybank and 31% by Ageas, an international insurance group.

Etiqa offers the Tiq 3-Year endowment plan. The interest rate has been reduced from 2.10% p.a. in July 2020 to the current 1.88% (August 2020).

Based on S$10,000 placed in Tiq 3-Year Endowment Plan at an interest rate of 1.88% p.a., you will receive a guaranteed payout of S$574 upon maturity of the policy.

3 Year Tiq Endowment August 2020

Summary

Here is a summary at a glance of the best endowment plans that I have found in August 2020.

NTUC Income Gro Capital EaseChina Taiping i-SaveTiq 3-Year Endowment
Maturity period2 years3 years3 years
Minimum investmentS$5,000S$30,000S$10,000
Interest rate per annum1.85%2.05%1.88%
Payment modeCash and SRSCash onlyCash only
Subscription StatusFully subscribedFully subscribedStill available

Best Endowment Plans In July 2020

Financial Planning

Looking for the best Endowment Plans in July 2020 to earn a higher interest rate than fixed deposits? Endowment plans are life insurance saving plans that are 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 give a lump sum payout with the guaranteed return. It is best to study the plan carefully as certain endowment plans offers non-guaranteed returns.

The Federal Reserve interest rate was cut by half a percentage point in March 2020. This has caused the Singapore Interbank Offered Rate (SIBOR) to start dipping. As such, the fixed deposit interest rates had fallen to non-attractive levels. Thus, we should consider alternative financial instruments that can offer us better returns over a short fixed time duration.

Below are the best single premium, non-participating life insurance savings plan that I have found to provide you with a guaranteed return over the time period in July 2020.

NTUC Income Gro Capital Ease

Interest Rate (p.a.): 1.85%, Minimum Investment: S$5,000, Maturity Period: 2 years, Payment Mode: cash and SRS (Supplementary Retirement Scheme)

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.

Gro Capital Ease is on a limited tranche and first come, first served basis.

Tiq 3-Year Endowment Plan

Interest Rate (p.a.): 2.10%, Minimum Investment: S$10,000, Maturity Period: 3 years, Payment Mode: cash only

Etiqa is owned by Maybank Ageas Holdings Berhad, a joint venture company that combines local market knowledge with international insurance expertise. The company is 69% owned by Maybank and 31% by Ageas, an international insurance group.

Etiqa offers the Tiq 3-Year endowment plan. Based on S$10,000 placed in Tiq 3-Year Endowment Plan at an interest rate of 2.10% p.a., you will receive a guaranteed payout of S$623 upon maturity of the policy.

Tiq 3 Year Endowment Return and Benefit

China Taiping i-Save Plan (Fully Subscribed)

Interest Rate (p.a.): 2.05%, Minimum Investment: S$30,000, Maturity Period: 3 years, Payment Mode: cash only

At the point of writing, China Taiping i-Save has been fully subscribed as it is a limited tranche.

China Taiping Insurance (Singapore) Pte Ltd is wholly-owned by China Taiping Insurance Holdings Company Limited. Since 2000, the company has been listed on the Hong Kong Stock Exchange, making it the first Chinese funded insurer listed overseas.

China Taiping Insurance (Singapore) Pte Ltd offers the China Taiping i-Save Plan. Based on S$100,000 placed in China Taiping i-Save Endowment Plan at an interest rate of 2.05% p.a., you will receive a guaranteed payout of S$6,280 upon maturity of the policy.

China Taiping i-Save July 2020

Summary

Here is a summary at a glance of the best endowment plans that I have found in July 2020.

NTUC Income Gro Capital EaseChina Taiping i-SaveTiq 3-Year Endowment
Maturity period2 years3 years3 years
Minimum investmentS$5,000S$30,000S$10,000
Interest rate per annum1.85%2.05%2.10%
Payment modeCash and SRSCash onlyCash only