Tiq 3-Year Endowment Plan Guaranteed Return of 2.10% per annum

Tiq 3-Year Endowment Plan Guaranteed Return of 2.10% per annum

For those who have not heard of Etiqa, the company 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.

Tiq 3-Year Endowment Plan is a single premium, non-participating life insurance savings plan offered by Etiqa that gives you a lump sum payout with guaranteed return of 2.10% per annum over 3 years.

The minimum investment amount is S$10,000 which gives you a return of S$643 at the end of policy maturity.

In my opinion, this is a low risk investment as compared to stocks and bonds. If your heart cannot take it or you cannot sleep because the stock market has crashed due to COVID-19, Tiq 3-Year Endowment Plan is something that you can look at for a short term investment.

Tiq 3-Year Endowment Plan Versus Singapore Savings Bonds

I love to compare such Endowment Plan against the current Singapore Savings Bonds rate especially during the current COVID-19 situation whereby the interest rates have been impacted quite badly.

The current issue of Singapore Savings Bonds (SBMAY20 GX20050A) offers an average interest rate of 1.39% over 10 years. If you hold the Singapore Savings Bonds for 3 years, the interest rate is Year 1: 0.96%, Year 2: 0.96% and Year 3: 1.01%.

If you purchase S$10,000 worth of Singapore Savings Bond (SBMAY20 GX20050A) and redeem it in the 3rd year, the total interest you will receive is S$292.22.

Tiq 3-Year Endowment Plan is the clear winner as S$10,000 at an interest rate of 2.10% p.a. gives you a return of S$643 upon policy maturity.

Tiq 3-Year Endowment Plan Versus NTUC Capital Plus

Both are single premium 3 year endowment plans.

Last month, I have purchased the NTUC Capital Plus using funds from my Supplementary Retirement Scheme. At this point of writing, the NTUC Capital Plus current Tranche for March is no longer available, thus Tiq 3-Year Endowment Plan is your current best bet.

Nevertheless, I have summarized the differences between both endowment plans below.

Tiq 3-Year Endowment NTUC Capital Plus
Maturity period 3 years 3 years
Minimum investment amount S$10,000 S$5,000
Interest rate per annum 2.10% 2.13%
Payment mode Cash only Cash and SRS