Cimb and singlife plan

[hub8246]

Hi all,
Someone from cimb called and introduced this plan from singlife to me. Would like to hear from you guys regarding this plan.

Invest min 75k to get 4.25% for 1st year.
Invest next 75k to get 3.5% for 2nd year.
Invest next 75k to get 3% for 3rd year.

Eg, 1st year get 75k x 0.045 = $3.375k
2nd year get 150k x 0.035 = $5.25k
3rd year get 225k x 0.03 = $6.75k

Can only surrender after 2.5 years and get back full amount (225k). If cannot top up on 2nd or 3rd year, the full amount will be gone.

Anyone heard of such plan before?
Thanks.

 

[devion]

Yes it is called Flexi Life, I enrolled into it. They also do have some upfront bonus amount to offer too, ask the RM for this to know what goodies they can offer. Last time my RM enticed me with a free IP15 or IPAD, cannot recall. Sometimes they offer cash too.

 

[reflecx]

I also have this, but the first chunk should only be for 6 mths, not 1 year.

 

[sglandscape]

It's a structured multi premium endowment plan?

 

[reflecx]

It's a structured multi premium endowment plan?

It's this - https://singlife.com/en/savings/flexi-life-income-ii
You get the 1st and 2nd year interest almost upfront, this is rebate from Singlife and CIMB. 1st year is backdated 6 mths, that's why it's 2.5 years.

 

[a4973]

So what's the verdict on the plan? Thank you.

 

[reflecx]

This is about 3.37% for 2.5 years. Mine was about 3.7% when I bought. Each person's risk appetite is different, this is an insurance product, not FD.

 

[maumu]

...

Can only surrender after 2.5 years and get back full amount (225k). If cannot top up on 2nd or 3rd year, the full amount will be gone.

...

100% penalty if cannot continue in 2nd or 3rd year - yet only give around 3.xx% returns? may as well put inside SSB for 2, 3 years also can sleep soundly at night...

better don't sign up such a terrible 'contract'.

 

[hub8246]

Thanks all for the advice. Seems like this product is not very attractive for the duration we need to commit.
If we have the funds, can consider ssb as it is more liquid.

 

[BBCWatcher]

SSB holdings top out at S$200K per person, so if that limit is consequential then you'd have to rule out SSBs.

A 2.5 year vehicle is not a long-term vehicle. Don't allocate long-term dollars to short-term vehicles.

One obvious short-term alternative is a high quality bond. It looks like you can get HDB bonds and even Singapore Government Securities maturing in 2027 with around a 3.2% to 3.3% yield to maturity. There's also a Temasek bond maturing on November 24, 2026, and it's a retail bond available in S$1,000 face value increments. On the secondary market that Temasek bond is probably a bit north of 3.3% YTM all-in right now. You have to pay up front, but then there's no risk you'll lose your prior payment(s) if you can't make all payments.

Next month there's a Singapore Government Security coming to auction that's a reopen of N521100V. It'll mature on November 1, 2026. If the cut-off yield determined at auction is similar to today then it should end up with a YTM of about 3.4%.