Singlife Account, Dash EasyEarn, Gigantiq: Which Insurance Savings Plans Gives You Higher Rates of interest And Better Benefits
Worried about finding higher yields in savings accounts within this low interest rate environment? You no longer need to settle for low-yield bank savings accounts, with insurers like Singlife, Singtel Dash and Gigantiq coming up with insurance savings plans that does not only have more attractive yields, but additionally insurance protection from death and TPD (total permanent disability).
What makes these plans particularly interesting, however, is they have no secure period. This means you are not necessary to keep the profit the checking account for any fixed period of time like a fixed deposit.
For fresh graduates or working professionals on a tight budget, this could be a good chance to dip your toes in the waters and let your money work for you. It's a good jump into personal financial planning with little capital outlay. Later on, with a lot more needs like housing or dependants, you can include insurance coverage with higher and more extensive coverage to your insurance portfolio.
Comparing Insurance Savings Plans With High Yield Savings Accounts And glued Deposits
Recently, a lot of lenders have lowered their rates of interest on their own high yield savings accounts. For example, Standard Chartered recently announced that from 1 Jan 2021, the interest rate for the JumpStart account for account balances as much as $20,000 will drop once more to 0.40% p.a., down from 1% p.a. and from 2% p.a. a year before. With that, high yield savings accounts no more appear to be an attractive proposition like a “race towards the bottom” becomes clear.
As for fixed deposits, banks such as DBS are providing a fixed deposit with a minimum amount of $1000 locked in for 18 months with an intention rate of just one.3% p.a., much less shabby taking into consideration the current rate of interest environment but the main drawback being your money is locked in for any significant time period.
So with high yield savings accounts no longer having such a high yield and glued deposits requiring a lock-in period, what is the alternative for achieving good yields with no lock-in tenure?
Insurance Savings Plans: Your One-Stop Look for Savings And Insurance Needs
These insurance savings plans created by Dash EasyEarn, GIGANTIQ and Singlife really are a mixture of a normal savings plan, insurance protection, and a traditional bank account.
|Singlife Account||Dash EasyEarn||GIGANTIQ by Etiqa|
|Interest Rate||Up to 2% around the first $10,000, and as much as 1% per annum on the next $90,000||1.8% p.a. for that first year (or 2% p.a. should you signed up before 24 Sep 2021)||1.8% p.a. (newbie) for first $10,000
1% p.a. (first year) for amounts more than $10,000
|Minimum Amount||$500, need to maintain at least $100 in account to get interest||$2,000||$50, top up anytime|
|Withdrawal Fees||No service, withdrawal or surrender fees||Multiples of $100 with a $0.70 fee per withdrawal||$0.50 fee for credit to DBS.
$0.70 fee for credit to PayNow.
|Death Benefit||105% of account value||105% of account value||105% of account value|
|Additional Benefits||Includes complementary VISA debit card
Earn a bonus 0.5% by spending $500 on your SingLife Visa debit card
Retrenchment benefit: Up to $10,000 over 3 months
|Additional insurance policy for COVID-19 including hospitalisation benefit, intensive care unit benefit and death benefit||Earn additional interest for every protection plan purchased under Etiqa
Singlife Account: Attractive Returns and Bonuses
Of the three insurance savings plans, Singlife has got the highest (non-guaranteed) interest rates, as much as 2% per annum (p.a.) on your deposits, limited to the first $10,000. Around the next $90,000, you'll earn 1% per year.
One of the more interesting features is the retrenchment benefit which you'll tap on. This benefit enables you to claim up to $10,000 over 3 months, should you become unemployed for 4 months or even more. The particular benefit you can claim is dependent on your spending habits: it is the average spent out of your Singlife Card over the last 6 months of employment.
You also get a no cost VISA Debit Card that's linked to your Singlife account with no annual fee or foreign currency charges.
Since 1 November 2021, Singlife has additionally introduced their 'Save, Spend, Earn' campaign, allowing customers who spend $500 per policy month on the Singlife Visa Debit Card to be eligible for a an added bonus 0.5% p.a. return, over the new base return of 2% p.a. This gives Singlife customers the chance to earn 2.5% p.a., the greatest among the options on their list.
Take note that in order to earn interest, your bank account value should be at least $100. You will need to download the Singlife app for you to make an application for this plan of action.
Singtel Dash EasyEarn: Higher Barriers To Entry, Lower Maximum Amount
EasyEarn is advertised as spending 1.8% per year within the newbie (by 25 September 2021), putting it in the range of similar competitors offering insurance savings plans. What gives EasyEarn higher barriers to entry would be the minimum single premium of at least $2000, which may be significantly more than what its competitors are currently offering.
The plan also provides you with the opportunity to be covered for COVID-19 insurance. The coverage includes hospitalisation benefit, intensive care unit benefit and a $50,000 death benefit. You will need to download the Singtel Dash app that you should make an application for this plan of action.
Read also: Guide To Using SingTel Dash EasyEarn: Here's How It Actually Works
GIGANTIQ by Etiqa: Easy Access, Options To Increase Interest
Etiqa has the most easily accessible plan, requiring just $50 to register an account. This would be ideal for most first-time users who want to dip their toes into such a plan but are with limited funds.
The rates of interest offered under GIGANTIQ in your first $10,000 for the newbie are listed below: guaranteed 1% p.a. and 0.8% p.a. bonus. The option to offer guaranteed interest rates makes this not only an accessible plan but a beautiful one too, knowing that your hard earned money will definitely earn curiosity about spite of any market movements.
You also have the option of earning additional interest of up to 0.25% p.a. around the first $10,000 for each protection plan purchased from Etiqa. These insurance plans may include home, cancer or travel insurance, also it could be good to think about this plan if you're also currently considering other kinds of protection.
You will need to download the Tiq by Etiqa mobile app for you to access this plan.
The Similarities Between All 3 Insurance Savings Plans And How You Can Use Them
An important caveat to note is the fact that these 3 financial instruments aren't accounts but instead insurance savings plans underwritten by their respective financial institutions. Which means that your funds are protected under the Policy Owner's Protection Scheme by the Singapore Deposit Insurance Corporation (SDIC) against any unexpected crisis.
In this case, as the insurance savings plans are considered individual life plans, there will be a cap S$100,000 for guaranteed surrender value per life assured per insurer.