The Singlife Savings Account is a Singapore Dollar non-participating yearly renewable universal life plan.
It provides you cash value accumulation and coverage on death or terminal illness.
The 2.5%p.a (on first $10,000) returns are NOT guaranteed and coverage is also NOT guaranteed for whole of life. Singlife reserves the right to terminate the policy on any policy anniversary by giving 90 days notice.
So what's good about the Singlife Savings Account?
For the first $10,000, 2.5%p.a interest is unparalleled now even if it is NOT guaranteed.
If the rates change, you can withdraw out freely! No lock-in period.
In addition, the amount you've deposited in the Singlife Account is protected up to $75,000 by SDIC.
How does the it compare?
It compares favourably against the Singapore Savings Bond SSB.
Rates have plummeted for the SSB and for 1y, you get only 0.57% in interest now.
Singapore Savings bond also has a $2 transaction to buy or sell.
There is actually a similar plan in the market which is also a universal life plan with interest.
That plan is ETIQA ELASTIQ which gives 1.8%pa guaranteed for 3years.
You can actually save into both.
First $10k in Singlife Savings Account and the next $5k to $50k into ELASTIQ.
Terms and conditions of Singlife Savings Account
Minimum initial deposit is $500 to create the account. You can then freely withdraw from the account at no cost. However, take note of always keeping the minimum.
Policy may lapse if the Account Value is below the minimum account value of SGD 100. Singlife reserves the right to change minimum account value requirement at any time, by giving ninety (90) days’ notice.
The first $10,000 is at 2.5% interest rate and the next $90,000 is only at 1%.
Death and terminal illness benefit
As this is a secondary concern, i'd simplify it. If you kept $10,000 inside it and aged 60 and less, you'd get $50,000 in event of payout. There are exclusions to suicide and pre-existing conditions though.
FREE Singlife VISA debit card
You can apply a complimentary Singlife VISA debit card to use savings on this account.
It has NO Fx fees and NO annual fees.
As of now, I almost always use credit cards and this VISA debit doesn't have much use yet.
As an existing Singlife customer, the application was really smooth as they had the information pre-filled. If you are new to Singlife, they have an online method for signing up via MyInfo.
I guess the VISA debit and Savings account could be a piece in Singlife's long term finance ecosystem to you as a customer. In terms of insurance which is where they started, they definitely have competitive plan offerings to you already.
PS: Look for the whatsapp button at end of post below for an online advised-based application.
- Get an analysis on how much coverage you may need
- Understand how to plan out your term duration
- Understand the various policy size discount tiers to save money