The Singlife Account – So how exactly does It Stack Up Against Other High-Interest Accounts?
Launched in November 2021, the Singlife Account touts itself as “a smarter, simpler method to manage your savings”.
The Singlife Account delivers a return of just one.0% per year (p.a.) on the first $10,000 deposited without any lock-in period and 0.5% p.a. around the next S$90,000. This rate of interest of just one.0% and 0.5% per year (by 01 July 2021) is really a reduction from the previous 1.5% and 0.5%, an expression from the falling interest rate environment. However, it is possible to still enjoy up to 2.0% p.a for the first $10,000. Users can subscribe to two other campaigns which will earn them an additional 0.5% p.a each. The first campaign is “Save, Spend, Earn” whereby users needs to spend a minimum monthly amount of $500 around the Singlife Debit Card to earn one more 0.5% p.a. The following campaign is “Grow 0.5% p.a. Bonus Return“, users can subscribe to a Grow policy and fund no less than $1,000 to earn another additional 0.5% p.a.
A minimum deposit of $500 is required upon account opening, and a minimum balance of $100 needs to be maintained to enjoy the advantages of the Singlife Account. Returns are not guaranteed and susceptible to future changes.
As of 15 December 2021, new Singlife Account sign-ups they fit on a waitlist because of the positive response and Singlife-Aviva merger. Existing Singlife Customers can continue to continue using their accounts.
Readers considering using the Singlife Account would undoubtedly have an interest to understand the differences between your Singlife Account and other high-interest accounts. We examine it below.
Singlife Account Is NOT A Bank Account
The first point you must know about the Singlife Account is it is not a bank checking account.
Instead, it's an insurance savings plan that is capital guaranteed, using the value within the Singlife Account protected up to specified limits through the Singapore Deposit Insurance Corporation.
The account includes services featuring which are typically offered by banks, such as use of balance via the Singlife app as well as an optional Singlife Debit Card for local and international transactions with no annual and foreign currency fees. Additionally, while “Grow 0.5% p.a. Bonus Return” is an investment-linked policy, we are able to withdraw and top up whenever without additional charges. Do observe that having both the Singlife Debit Card and Grow policy allows customers to generate the extra 1.0% p.a on their own first 1.0% p.a.
There aren't any points or cash rebates by using the Singlife Debit Card, but each card transaction will count for the retrenchment benefit (we'll get to that shortly). Additionally, while cash withdrawals via the debit card are currently unavailable, account holders can make withdrawals via FAST transfer to their own personal bank account.
As an insurance savings plan, the Singlife Account also comes with a insurance coverage as high as 105% from the deposit in the event of death or terminal illness. The insurance policy is automatically renewed each year subject to conditions and exclusions, and it'll be terminated when the benefit is paid.
|In a celebration of death or terminal illness||Benefit|
|Before the policy anniversary which life assured's age last birthday is 61||Sum of:
– deposit; and
– 5% of deposit or $50,000, whichever is lower
|On or after the policy anniversary on which life assured's age last birthday is 61||Sum of:
– deposit; and
– 1% of deposit or $50,000, whichever is lower
In accessory for the insurance coverage, the Singlife Account comes with a retrenchment benefit.
As long the account holder is retrenched after the first six months in the account opening and stays unemployed for at least 4 months, the account holder will receive the benefit for a period of three months, subject to terms and conditions.
The benefit amount is dependant on the typical monthly Singlife Debit Card transaction made over the six months right before the date of retrenchment, capped at $10,000.
How Singlife Account’s Interest Compares Along with other Accounts
The Singlife Account provides a return of up to 1.0% around the first $10,000 (or 2.0% with “Earn, Save, Spend” and “Grow 0.5% p.a. Bonus Return”), and 0.5% for the next $90,000. No returns is going to be paid for on amounts above $100,000.
While the returns on the Singlife Account aren't guaranteed, it's worthy to notice the rates of interest offered by banks on their own high-interest accounts might be put through revision as well.
Here’s a comparison of Singlife Account’s interest rates with three popular high-interest rate accounts.
|Accounts||Rate (P.A.)||Terms and Conditions|
|Singlife Account||Up to 2%||– Initial deposit of $500
– Maintain a minimum balance of $100 to earn returns
– First $10,000 receives 1.0% p.a. (or 2.0% p.a. with “Earn, Save, Spend Campaign”and “Grow 0.5% p.a. Bonus Return”)
– Next $90,000 receives 0.5% p.a.
– No interest above $100,000
|CIMB FastSaver Account||Up to 0.3%||– Initial deposit and minimum balance of $1,000 to earn interest
– First $75,000 receives 0.3% p.a.
– Above $75,000 receives 0.15% p.a.
|UOB Stash Account||Up to 1%||– Initial deposit and minimum balance of $1,000 to prevent fall-below-fee of $2
– First $10,000 receives 0.05% p.a.
– Next $30,000 receives 0.30% p.a.
– Next $30,000 receives 0.60% p.a.
– Next $30,000 receives 1.00% p.a.
– $100,000 and above receives 0.05% p.a.
To illustrate the returns one will receive from each account, here’s an example based on a deposit of $100,000 for a year, excluding promotional rates.
Out of the three accounts, Singlife Account will yield a return of $650, while UOB Stash Account yields $575, accompanied by CIMB FastSaver's $262.5.
While Singlife Account doesn't pay any interest on amounts above $100,000, trailing behind another savings account when it comes to returns, the availability of a debit card and the relatively preferred tax treatment (for amounts less than $100,000) than the other two high-interest accounts create a wise decision for anyone intending to keep their emergency fund or spare cash, without incurring penalties for withdrawals.
Signing Up For The Singlife Account
To sign up for a Singlife Account, you will first be required download the Singlife App and register your details using SingPass MyInfo.
After confirming the facts, you are able to proceed to create a minimum initial deposit of $500 via FAST transfer from the banking account into the Singlife Account, and also to make a request for the debit card to be mailed for you within 9 to 12 working days.
Do observe that by 15 December 2021, new Singlife Account sign-ups they fit on a waitlist. More information is going to be sent across to interested account holders nearer to the reopening date.