NTUC Income Gro Capital Ease

NTUC Income Gro Capital Ease

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.

SBJUL20 GX20070W Interest Rates

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.DBS Fixed Deposit Rates May 2020

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.

The Best Endowment Plans of June 2020

The Best Endowment Plans of June 2020

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.

Recently, 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.

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

Interest Rate (p.a.): 2.13%, Minimum Investment: S$30,000, Maturity Period: 3 years, Payment Mode: cash only

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 2.13% p.a., you will receive a guaranteed payout of S$6,530 upon maturity of the policy.

The Best Endowment Plans of June 2020

Summary

Here is a summary at a glance of the above endowment plans.

China Taiping i-SaveTiq 3-Year Endowment
Maturity period3 years3 years
Minimum investmentS$30,000S$10,000
Interest rate per annum2.13%2.10%
Payment modeCash onlyCash only